Welcome to ID Tech’s digest of identity industry news. Here’s what you need to know about the world of digital identity and biometrics today:
European Commission Announces Digital Business Wallet Initiative
The European Commission has introduced the European Business Wallet, a digital initiative designed to streamline business operations across the EU. Announced by Commission President Ursula von der Leyen as part of the EU Competitiveness Compass 2025, the initiative builds on the eIDAS 2.0 framework for digital identity. The European Business Wallet will provide secure storage and management of business credentials, licenses, and certificates while ensuring cross-border interoperability. It aims to simplify regulatory compliance and enhance security through eIDAS regulations. The Commission has set targets to reduce reporting requirements by 25 percent for all companies and 35 percent for SMEs, projecting cost savings of EUR 37.5 billion. The initiative follows the validation of the first open-source European Union Digital Identity Wallet (EUDIW) and aligns with broader EU digital transformation efforts, including the potential launch of a digital euro. Implementation details are still in development.
Kurdistan Regional Government Launches Digital Identity-Based Payroll System
The Kurdistan Regional Government (KRG) has launched a Digital Identity-Based Payroll Management System (PMS) to centralize payroll processing and reduce fraud. Announced in September 2024 and implemented in February 2025, the system enhances transparency and efficiency in civil servant salary payments through biometric technology. The KRG’s Department of Information Technology (DIT) described the system as a key component of the region’s digital transformation strategy. Features include centralized payroll management, improved accuracy in payment calculations, enhanced financial transparency, and advanced data analytics for financial planning. Prime Minister Masrour Barzani emphasized the system’s role in the government’s broader digitization efforts.
Milwaukee Brewers to Implement Facial Recognition Entry System
The Milwaukee Brewers will introduce facial recognition technology at select gates of American Family Field for the 2025 season. The system, designed to streamline entry and reduce wait times, will be optional, with traditional entry methods remaining available. The deployment follows similar biometric implementations at sports venues worldwide, including Cyprus and Tottenham Hotspur Stadium. Privacy concerns surrounding facial recognition in public venues have increased, with regulators scrutinizing biometric data handling. The Brewers have not disclosed specific data handling policies, though the optional nature of the system suggests consideration of privacy concerns. The facial recognition entry system is expected to be operational during the 2025 season, alongside other stadium improvements, including a dedicated rideshare lot for post-game transportation.
Maharashtra Government’s Facial Recognition System Faces First-Day Technical Hurdles
The launch of a facial recognition security system at Mantralaya, Maharashtra’s government secretariat in Mumbai, experienced technical difficulties, leading to long queues and access delays. The system, which combines facial recognition with RFID cards, struggled to recognize faces, requiring multiple attempts for entry. The Information and Technology department had preloaded data for approximately 1,500 officers and employees, but failures in recognition particularly affected staff members, some of whom were unable to enter. Accredited journalists and Home department pass holders were initially denied access but were later allowed entry after discussions with officials. In response, the state government has directed officials to ensure all personnel register their facial data to prevent further disruptions.
Telstra Implements ConnectID Digital Identity Verification for Mobile Services
Telstra has introduced ConnectID, a digital identity verification service, for customers activating selected mobile services. Developed by Australian Payments Plus (AP+), ConnectID allows users to verify their identity online without uploading personal documents. The system acts as a secure bridge between organizations and trusted data sources, including major Australian banks such as Commonwealth Bank, NAB, ANZ (via ANZ Plus), and Westpac. Telstra executives emphasized the security benefits of reducing the need to collect and store original ID documents. Since its late 2024 launch, tens of thousands of customers have used the service. Currently, ConnectID is available for specific mobile services and is expected to expand. The rollout aligns with Australia’s broader digital identity strategy, including the planned launch of a national digital ID system in summer 2024.
South Africa Plans Major Expansion of Smart ID Program for 2025
South Africa’s Department of Home Affairs (DHA) is expanding its national smart ID card system in 2025, aiming to provide access to all citizens, including naturalized individuals and permanent residents. The initiative includes a major expansion of smart ID and passport services through banking sector partnerships, increasing service points from 30 branches to potentially thousands nationwide. IDEMIA’s 10-year contract supports the initiative by supplying 80 million smart ID cards and upgrading biometric enrollment capabilities. Security enhancements include biometric verification via fingerprints or facial recognition, SMS and email alerts, two-factor authentication for online services, AI-powered fraud detection, and improved identity verification protocols. The DHA is also introducing a home delivery option for ID documents and passports.
EU AI Act Begins Initial Enforcement Phase, Banning High-Risk AI Systems
The European Union has begun enforcing the first phase of the AI Act, immediately banning AI applications classified as posing “unacceptable risk.” Prohibited systems include social scoring, behavioral manipulation, biometric surveillance in public spaces, predictive policing based on physical appearance, and emotion detection in workplaces and schools. The Act, which took effect on August 1, 2024, follows a phased implementation, with full enforcement of high-risk AI rules set for August 2, 2026. Companies violating the Act could face fines of up to €35 million or 7 percent of global revenue. Enforcement responsibilities are divided between national and EU regulators, with the European Commission overseeing general-purpose AI models. Experts anticipate a gradual enforcement approach as companies assess compliance.
AuthenticID Report Reveals Record-High Fraud Rate, AI-Powered Attack Surge
AuthenticID’s latest State of Identity Fraud Report highlights a sharp rise in AI-driven identity fraud, with fraud rates reaching a three-year high of 2.10 percent in 2024. The report analyzed over 500 million transactions and found that synthetic identities and AI-generated deepfakes accounted for 42 percent of fraud attempts. Phishing attacks targeting financial and healthcare institutions increased by 76 percent, while the detection of fake IDs rose by 42 percent due to generative AI. Fraudsters doubled account takeover attempts in financial services, and 33 percent of healthcare onboarding processes involved synthetic identities or stolen credentials. Consumer trust has been severely impacted, with 70 percent expressing concerns over AI-driven fraud and 62 percent willing to switch providers after a single fraud incident. AuthenticID detected 3.8 million deepfake attempts in 2024, a 210 percent increase from 2023. The report urges businesses to adopt multi-layered verification systems, real-time fraud detection, and employee training to combat AI-driven fraud.
authID Partners with Salus to Enhance Financial Inclusion
authID Inc. has partnered with microlending platform Salus to enhance financial security for over 120 million underserved Americans through biometric identity verification. The collaboration integrates authID’s PrivacyKey technology into Salus’s digital lending platform, enabling secure biometric authentication without storing sensitive biometric data. Salus, which partners with credit unions to provide credit access using non-traditional financial data, will implement facial matching and liveness checks for secure onboarding. The integration aims to streamline regulatory compliance and reduce authentication friction for individuals unfamiliar with traditional banking. AuthID CEO Rhon Daguro emphasized biometrics’ role in expanding financial participation while preventing deepfake fraud.
Mastercard Accelerates Shift to Biometric Authentication, Aims to Eliminate Passwords by 2030
Mastercard plans to eliminate manual card entry and passwords for online transactions by 2030, replacing them with biometric authentication such as facial recognition and fingerprint scanning. CEO Michael Miebach announced the initiative during the company’s Q4 2024 earnings call, citing online fraud rates that are seven times higher than in-store fraud. The company processes 4 billion tokenized transactions monthly, with tokenization remaining central to its security strategy. Mastercard’s 1 Credential initiative consolidates multiple payment options into a single tokenized credential for enhanced security and convenience. The recent acquisition of Recorded Future strengthens Mastercard’s AI-driven threat intelligence capabilities. The shift aligns with industry trends, including EMVCo’s work on biometric payment card standards, though consumer adoption varies by region.
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February 4, 2025 – by Tony Bitzionis and Alex Perala
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