ID Tech Digest – November 20, 2024

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:

Government-focused Prism Report Lays Out ‘Identity Hierarchy’, Predicts 39 Percent CAGR Through 2028

Acuity Market Intelligence has released its Government Services Biometric Digital Identity Prism Report, offering an in-depth analysis of biometric digital identity solutions in the public sector. The report introduces the Prism Identity Hierarchy, which defines six levels of identity—Human, Foundational, Biographical, Contextual, Pseudonymous, and Transactional—highlighting biometrics’ role in creating secure, foundational identities for government applications. Forecasting a 39.2 percent compound annual growth rate (CAGR) from 2024 to 2028, the report predicts the market will generate $202.5 billion globally, with Asia Pacific, North America, and Europe leading revenue and transaction volumes. Innovations such as biometric barcodes and offline-compatible mobile IDs are identified as transformative technologies for enhancing inclusivity. Challenges include legacy systems, cybersecurity risks, and resistance to change, but the report positions biometric solutions as critical for improving fraud prevention, operational efficiency, and regulatory compliance.

Federal Judge Dismisses Biometric Privacy Lawsuit, Citing BIPA Amendment

A federal judge dismissed a biometric data privacy lawsuit, citing the recent amendment to Illinois’ Biometric Information Privacy Act (BIPA), which limits claimable damages and applies retroactively to pending cases. Judge Elaine Bucklo ruled that the maximum damages in John Gregg’s lawsuit against Central Transport LLC were reduced from over $75,000 to $15,000 under the amended BIPA, leading to its dismissal from federal court for lack of jurisdiction. The August 2024 amendment clarified legislative intent, limiting violations to one per individual rather than for each biometric scan and recognizing electronic signatures as valid consent. This change addressed concerns over excessive liability, as highlighted in cases like Cothron v. White Castle. While employers welcome the reduced damages and fewer class actions, critics argue the amendment leaves unresolved questions about retroactive application. Bucklo’s ruling sets a precedent that may significantly influence ongoing and future BIPA litigation.

India Mandates Biometric Attendance Systems for University Staff

India’s higher education department has mandated biometric attendance systems for teaching and non-teaching staff at state universities to improve accountability and efficiency. The directive cites concerns about staff punctuality, requiring daily entry and exit records through fingerprint or facial recognition systems. Universities must also adopt electronic file management systems, reflecting broader trends in India’s use of biometric technologies, such as in the banking sector for fraud prevention. While the initiative aims to enhance institutional operations and ensure staff presence, academic experts have raised concerns about data privacy and security risks associated with biometric deployments in educational settings.

China to Launch Mandatory Data Management Audits in 2025

China will implement mandatory data management audits starting in 2025 under its privacy law framework, targeting businesses, particularly in the artificial intelligence sector. Companies must maintain detailed data transaction records for 10 years and provide reports upon request. Audits will assess compliance with data minimization, encryption, privacy-enhancing technologies, and authorization management systems. Financial institutions face stricter customer due diligence and beneficial ownership verification requirements. Non-compliance penalties include fines up to RMB 10 million. Specific exemptions apply, such as personal communications and routine intra-group data sharing. The law has extraterritorial scope, covering offenses outside China impacting its security or financial order, with foreign institutions potentially required to cooperate.

Continental to Unveil ‘Invisible’ Biometric Display Technology at CES 2025

Continental will introduce a biometric sensing display at CES 2025, integrating biometric identification behind a high-resolution OLED screen without additional sensors. The system includes liveness detection to prevent fraud and theft and features driver drowsiness monitoring, aligning with industry trends and legislative pushes for advanced driver monitoring systems. This innovation combines biometric authentication with health and safety monitoring, enhancing security and occupant protection in vehicles. The technology reflects a growing market for eye-tracking and health monitoring systems, projected to reach $1.786 billion by 2025.

BioCatch Launches Behavioral Fraud Detection Network with Major Australian Banks

BioCatch has launched the BioCatch Trust Network, a behavior-based financial crime intelligence-sharing system designed to protect bank customers by evaluating receiving account trustworthiness in real-time. Five major Australian banks—ANZ, Commonwealth Bank of Australia, National Australia Bank, Suncorp Bank, and Westpac—are founding members of the network. The system uses a behavioral intelligence engine to analyze digital session data, payment information, and account details, alerting sending banks of untrustworthy accounts to prevent fraudulent transactions. Pseudonymization technology ensures customer identities remain protected while enabling actionable intelligence sharing. BioCatch plans to expand the network internationally in 2025.

China Pilots Document-Free Facial Recognition Border Crossings at Hong Kong and Macau Ports

China has launched document-free facial recognition border crossing systems at Shenzhen Bay Port near Hong Kong and Gongbei Port in Zhuhai City, enabling travelers to verify their identities without physical documents. The system, part of a pilot program, leverages facial recognition technology to streamline border control processes while maintaining security standards for residents of Hong Kong, Macau, and mainland China. It aims to reduce identity fraud and enhance processing efficiency at these busy checkpoints. This development aligns with global trends, such as the U.S. Customs and Border Protection’s biometric border control deployments. Privacy concerns persist, particularly given recent reductions in mandatory facial recognition use in other sectors in China. The pilot program’s results will determine whether the system is expanded to additional border locations.

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November 20 2024 – by Tony Bitzionis and Alex Perala