Ending Stolen Valor and Tackling Identity Fraud: How Technology Can Restore Trust

Falsely claiming military honors—often referred to as stolen valor—is more than an insult to those who have served. It represents a wider challenge that societies around the world are grappling with: identity fraud. When credentials can be forged, stolen, or manipulated, the integrity of entire systems—whether military, financial, or educational—comes into question.

In the U.S., fraudulent military service claims have cost the Department of Veterans Affairs over $100 million in improper payments in recent years. But the problem is not confined to the armed forces. Identity fraud in all its forms is a multi-trillion-dollar global problem, threatening governments, financial institutions, and individuals alike.

Recent innovations in blockchain and AI-powered verification offer a glimpse into how technology can help prevent stolen valor, restore confidence in credentials, and create a foundation of trust in the digital economy.

The Hidden Costs of Identity Fraud

The financial and social impacts of identity fraud are enormous:

• Veteran benefits abuse: Fake claims divert resources from legitimate service members, undermining trust in veteran programs.

  
  

• Workforce manipulation: Fraudulent service or educational records distort hiring processes, denying real veterans or graduates opportunities they’ve earned.

  
  

• National security risks: Impostors have infiltrated defense contractors, gaining access to sensitive positions and data.

  
  

• Global economy: The UN Office on Drugs and Crime links impersonation fraud to organized crime, estimating global identity theft losses at over $50 billion annually.

  
  

The World Economic Forum projects identity-related fraud could cost the global economy $8 trillion by 2027. In Asia-Pacific, where digital transformation is accelerating rapidly, the risks are magnified by high mobile adoption, cross-border transactions, and uneven regulatory frameworks.

Technology as a New Line of Defense

Modern identity verification systems are increasingly proactive rather than reactive. Instead of catching fraud after it happens, they aim to prevent fraud at the source by ensuring identities and credentials are validated in real time.

Three key innovations are driving this shift:

1. AI-powered authentication – Algorithms can instantly detect anomalies in service records, financial transactions, or credentials at scale.

   
   

2. Blockchain immutability – Cryptographic records provide tamper-proof assurance, making falsification nearly impossible.

   
   

3. Tokenized verification – Verified identities can be securely linked to benefits, entitlements, or digital services, ensuring access is granted only to legitimate recipients.

By combining these tools, institutions can reduce fraud, speed up verification, and provide stronger guarantees of authenticity.

Lessons for Asia-Pacific

While stolen valor is most visible in the U.S. military context, the implications are highly relevant across Asia-Pacific:

• In Singapore, the government’s SingPass digital identity system has become a trusted gateway for accessing healthcare, education, and banking services. Expanding verification into military and veteran records could further protect against fraud.

  
  

• In Australia, scams and impersonation remain a top cybercrime category. Immutable credential verification could reduce fraud in both defense contracting and social benefits programs.

  
  

• In India and the Philippines, where millions rely on remittances and government subsidies, stronger identity verification frameworks could cut down on fraudulent claims and misdirected benefits.

  
  

• In Indonesia and Vietnam, rapid digital banking adoption increases the need for verification systems that are interoperable across both government and private sectors.

  
  

These examples highlight a common reality: whether protecting veterans, financial customers, or welfare recipients, trust in digital identity is now a foundation of national resilience.

Barriers to Overcome

Despite the promise, implementing advanced verification comes with challenges:

• Privacy and regulation: Different jurisdictions impose strict limits on how data can be stored and shared. In APAC alone, privacy laws vary widely.

  
  

• Adoption and interoperability: Technology is only effective if institutions agree on shared standards and platforms.

  
  

• Public trust: People must believe the systems are fair, transparent, and protective of their personal data.

  
  

Failure to address these barriers risks creating fragmented solutions that criminals can still exploit.

Looking Forward

Stolen valor may seem like a niche issue, but it is part of a far larger story about how societies value integrity in the age of digital information. Whether protecting the honors of soldiers, the benefits of citizens, or the assets of customers, identity verification is now central to security and trust.

As technology advances, the opportunity is clear:

• Prevent fraud before it happens.

• Protect the value of legitimate credentials.

• Build systems where trust is not assumed, but guaranteed.

For Asia-Pacific and beyond, the lesson is urgent. With fraud accelerating and identity becoming the key to accessing everything from payments to healthcare, the future of security will be built on the ability to verify—and to do so without compromise.