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KYC identity verification risks rising fraud and data breaches
The article points to a reported dark web sale of more than 153 million U.S. and Canadian driver’s license records and an FBI investigation into IDScan.net following an apparent breach.
CoinDesk highlights growing concerns that customer identification and verification systems used in anti-fraud and KYC workflows can become a new target for cybercriminals, by concentrating sensitive data in ways that are exploitable when attacks occur.
The piece cites reporting that a dark web service is offering more than 153 million American and Canadian driver’s license records for sale, and it notes that the FBI is investigating an apparent data breach involving IDScan.net, an identity-verification provider used by a range of businesses.
According to CoinDesk, IDScan’s technology scans and authenticates IDs for categories including car-rental agencies, banks, hotels, casinos, cannabis dispensaries, and retailers, with capabilities such as capturing front-and-back images, extracting personal information, matching an ID photo to a selfie, and transmitting or storing the resulting data in a cloud portal.
Coin Center research director Laz Pieper argues in the article that privacy-preserving identity verification could let individuals prove only what a service needs to know while keeping underlying information under their control, pointing to prior major breaches such as Equifax, where nearly 148 million Americans’ sensitive personal information was compromised.