Mexico Advances Digital Identity for Safer Financial Services

Mexico’s financial sector is stepping up efforts to strengthen digital trust, essential for identity verification, fraud prevention, and financial inclusion. At the Facephi Digital Trust Meet 2025 in Mexico City, experts from government, fintech, and regulatory bodies agreed that secure, interoperable digital identity systems are crucial to protect users and expand access to financial services.

According to Mexico’s financial protection agency, CONDUSEF, identity-theft-related fraud in the banking system reached MX$11.3 billion (US$611 million) in 2024—a 77% increase from 2023—yet financial institutions reimbursed only 1.4% to affected users. These figures highlight the urgency of safer digital ecosystems and closer collaboration among financial, tech, and regulatory entities.

Luis Lima, General Director of Information Security Supervision, CNBV, opened the event, stressing that “innovation plays a critical role in protecting data and maintaining user trust in digital financial services.” Jorge A. Ortiz, Senior Consultant, The Common Sense Project, added: “Digital identity is not only the first line of defense against fraud—it is also the gateway to financial inclusion.”

The Mexican government has launched initiatives to standardize digital identity infrastructure, including Llave MX, a single sign-on platform for public services, and the upcoming National Digital Identity Document to harmonize verification across sectors. Adoption remains limited, however. Nicolás Hernández, Deputy Director of Business and Transformation, Cecoban, explained that many Mexicans do not recognize their digital identifiers, like email addresses or CURP numbers, as part of a unified identity system.

Panelists emphasized that innovation, regulation, and security must evolve together. “In the rush to innovate, organizations often overlook security, and attackers exploit those gaps,” warned Bruno Rivadeneyra, Director of Business Development, Facephi. Mexico’s 2023 General Population Law laid the legal foundation for a national digital identity framework, while the Digital Transformation Agency is building interoperable systems to link public and private entities. Projects such as the Expediente Digital Ciudadano aim to centralize personal data and incorporate biometric authentication for secure transactions.

“If the system does not build trust among citizens, it will not work,” Hernández said. Public education on privacy and fraud prevention will be key to adoption. Widespread use of digital identity could increase Mexico’s GDP by up to 13%, reduce fraud, and expand access to formal financial systems for millions.

Combating the Rise of “Mule Accounts”

The conference also addressed “mule accounts,” used to launder illicit funds. “Mule accounts are one of the biggest challenges for financial integrity today,” said Bernardo Mendoza, Strategy Director at Fintech México. Vulnerable groups, such as students or informal workers, are often deceived into lending accounts for illegal transfers, which are quickly dispersed, converted to cryptocurrencies, or withdrawn.

This rise in “authorized fraud,” where victims approve fraudulent transactions, has outpaced traditional anti-fraud tools. Fintech México has strengthened collaboration with the CNBV, UIF, and SHCP through quarterly working groups focused on intelligence sharing and oversight. Mendoza called for standardized data-sharing protocols to detect anomalies, such as multiple accounts under the same credentials or unusual transaction patterns.

“Technology alone is not enough,” Rivadeneyra concluded. “Building digital trust requires institutions, regulators, and citizens to move together—with shared responsibility and transparency.”