Identity News Digest – May 2, 2024

Welcome to FindBiometrics’ digest of identity industry news. Here’s what you need to know about the world of digital identity and biometrics today:

PE Firm Permira to Take Controlling Stake in BioCatch

Permira, a global private equity firm, will acquire a majority stake in BioCatch for $1.3 billion. BioCatch, founded in 2011 and specializing in behavioral biometrics for fraud prevention, has rapidly grown, achieving over $100 million in annual recurring revenue and EBITDA profitability in 2023. The company will continue operating under its existing management post-acquisition. The deal involves Permira buying out shares from Bain Capital, Maverick Ventures, and others. BioCatch’s technology uses machine learning to analyze user behavior patterns like typing speed and mouse movements to differentiate between legitimate users and fraudsters, preventing about $3.5 billion in losses.

Major BIPA Amendment Passes House Committee

The Illinois House Judiciary-Civil Committee has passed an amendment to the Illinois Biometric Information Privacy Act (BIPA), which previously cleared the state Senate. The amendment sets a maximum fine of $1,000 per individual for recording biometric information without explicit, written consent—a shift from the current standard where each scan counts as a separate violation. The amendment responds to numerous lawsuits involving entities from Google to local businesses. Critics argue that BIPA is outdated and the amendment doesn’t adequately protect companies from retrospective actions for past violations.

NSW Data Breach May Have Impacted a Million Pub and Club Patrons

Authorities in New South Wales are investigating a major data breach potentially affecting over 1 million patrons of pubs and clubs. The breach involves sensitive biometric data and other personal information like driver’s license scans and addresses, managed by Outabox, a third-party IT provider. The information was purportedly leaked by a group claiming to be unpaid offshore developers of Outabox, who have set up a website listing the stolen data, including facial recognition scans and gambling habits. While these claims are unverified, Outabox has acknowledged a potential unauthorized data access, while disputing the allegations on the website as harmful falsehoods.

UK Comms Regulator Opens OnlyFans Investigation

Ofcom, the UK communications regulator, has launched an investigation into OnlyFans, the adult content subscription platform, due to potential deficiencies in its age verification systems. The investigation follows earlier information requests from Ofcom in 2022 and 2023, which questioned the effectiveness of OnlyFans’ measures to prevent underage access. There are also concerns about possible non-transparency from OnlyFans’ parent company, Fenix International Limited, in previous regulatory responses. Despite OnlyFans’ use of facial scanning technology through Yoti, a government-approved age verification provider, issues have arisen, including discrepancies related to age thresholds.

AlgoFace Wins $275k SBIR Grant

AlgoFace, a startup specializing in Face AI, has been awarded a $275,000 grant from the U.S. National Science Foundation’s (NSF) Small Business Innovation Research (SBIR) program. The funding will support R&D for the group’s Face Analyzer/Semantic Search technology, which uses AI to identify facial attributes in photos via text descriptions, eliminating the need for a “probe photo”. This development has potential applications in various fields including national security, law enforcement, and media, among others. AlgoFace says its focus is on ethical AI development to enhance privacy and reduce risks.

Indian e-Scooter Company Integrates FPC Biometric Tech

Fingerprint Cards has partnered with Lapa Electric, an Indian electric mobility startup, to develop a biometric-enabled e-scooter. The collaboration aims to enhance security for two-wheelers by replacing traditional keys with biometric authentication, effectively reducing the risk of theft and eliminating issues associated with lost or stolen keys. The integration of Fingerprints’ compact biometric sensors into Lapa’s console and throttle system aligns with the growing trend of incorporating advanced security technologies in vehicles. The e-scooters are currently undergoing road testing and are expected to launch in limited quantities by early next year.

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May 2, 2024 – by Alex Perala and Tony Bitzionis