Technology Rajiv gupta August 12, 2026 0 Comments

The Shift Toward Personalized Digital Identity Tools in Everyday Online Life

As smartphones have become central to our lives, phone numbers have evolved from mere contact information into critical identifiers that underpin online identity verification. In shopping, social media, financial services, and various apps, it is not uncommon to use SMS authentication for logins and account recovery.

On the other hand, registering a phone number with numerous services creates privacy concerns in exchange for convenience. The National Institute of Standards and Technology (NIST) has also pointed out that in SMS-based multi-factor authentication, phone numbers can serve as personally identifiable information.

As digital services proliferate, a single phone number becomes linked to an increasing number of online activities. When notifications from companies, authentication codes, advertisements, and service registrations all converge on the same number, it becomes difficult to distinguish between important communications and unwanted messages. Consequently, in the context of digital identification within our digital society, a phone number alone is no longer sufficient.

Furthermore, while SMS is convenient, it is not a universal solution for authentication. Security research has confirmed that SMS-based authentication and one-time code systems can be exploited for fraudulent account creation and authentication bypass.

Virtual Numbers Expand Digital Identity

In this environment, virtual numbers are gaining attention. Virtual numbers refer to a system that allows users to utilize a different phone number through online services, without being limited to a physical SIM card. By separating personal and work use, or using a different number to register for specific services, users can choose not to share their primary phone number more than necessary.

This flexibility also has practical significance for travelers using overseas services and users who switch between multiple online services. However, not all virtual numbers support SMS authentication equally, and some services may not accept VoIP numbers or temporary numbers.

This issue becomes even more interesting when considering cross-border online activities. Japan is a market with its own unique digital service environment, yet it also has a strong interest in overseas sports and entertainment. For example, among Japanese users who follow international sports events or use overseas services, some consciously use different digital tools to manage their personal information. As one example, when researching information online about bookmakers in Japan that accept cryptocurrency, it is important to verify the personal information and authentication methods required during registration.

Risks Behind the Convenience

Virtual numbers offer benefits such as privacy protection, the ability to manage accounts by purpose, and spam prevention. However, they should not be chosen solely for the sake of convenience. In services where numbers are reused, issues related to previous users may persist, making them unsuitable for authenticating critical accounts.

Therefore, for financial services and important personal accounts, it is crucial to consider authentication methods that do not rely solely on SMS. Authentication methods other than phone numbers—such as authentication apps, security keys, and passkeys—are also becoming increasingly common.

Toward an Era of Managing Your Own Digital Identity

In the online world of the future, the concept of managing everything with a single phone number may change. What matters is not the use of virtual numbers per se, but that users themselves decide what information to share with which services—and to what extent.

Digital identity is shifting from being unilaterally managed by service providers to being proactively managed by users according to their specific needs. Virtual numbers and new authentication technologies are among the tools supporting this shift. As our online lives become increasingly complex, managing digital identities in a way that balances convenience, privacy, and security will become increasingly important.