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Synthetic Identity Fraud (looks repeated)
- Risk: The emergence of synthetic identities created by combining real and fabricated data, which can bypass traditional identity verification systems. If such identities are stored or validated within digital identity wallets, they can compromise the overall trust model.
- Solutions:
AI-driven behavioral and pattern analysis
Enhanced fraud detection mechanisms
Verification based on multiple trusted sources rather than a single authority
Scalability and Accuracy Limitations of Existing Systems 
(could it be a correct risk for wallets?)
- Risk: Many current digital identity security systems lack the scalability and accuracy required to handle large volumes of users and increasingly sophisticated AI-based attacks. This limitation poses a significant challenge for identity wallets operating at national or cross-border scale.
- Solutions:
Deployment of scalable and resilient system architectures
Use of AI to automate threat detection and response
Continuous improvement of algorithmic accuracy under high-load conditions [2]
GenAI: here we mean using GenAI outside the wallet (AI-as-a-Service)
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