The State of Identity - February 21, 2025
In case you missed it, here’s a recap of some exciting news and developments this week impacting identity and fraud, cybersecurity, trust and safety, financial crimes compliance, and privacy and consent management.
??Innovation and New Technology Developments
JPMorgan Payments Prioritizes Palm Vein Biometrics For Global Rollout
J.P. 摩根 Payments is focusing on palm vein biometrics as a key part of its strategy, planning a larger rollout in 2026 after user research and pilot programs. The company has launched two biometric payment terminals: Paypad, featuring an eight-inch display with palm vein and facial recognition, and Pinpad, a smaller device with a number pad and biometric scanning. Both support various payment methods and are set to launch in the U.S. in late 2025 before international expansion. This initiative follows trials with PopID and aligns with the industry's growing adoption of biometric payments, led by giants like Visa, Mastercard, and Amazon. (Source)
Georgia Launches Tender for National Digital Identity Wallet Proof of Concept
Georgia has initiated a tender for a proof of concept to create a national digital identity wallet that will issue verifiable credentials based on Georgian ID card data. Managed by the Public Service Development Agency (PSDA) and financed by the World Bank through a $102.9 million initiative, the wallet aims to enhance secure identity management for citizens and businesses while adhering to GDPR and eIDAS standards. It will integrate with eID services for identity verification and KYC checks, serving sectors like travel, healthcare, and education. Applicants must have international experience and contracts worth at least $2 million. The initial selection closes on March 18, 2025, with a proposal request anticipated in April 2025. (Source)
Palo Alto Networks Raises Revenue Forecast on Strong AI-Driven Cybersecurity Demand
Palo Alto Networks raised its full-year revenue forecast, expecting strong demand for its AI-driven cybersecurity solutions as enterprises focus on digital threat protection. CEO Nikesh Arora noted that Q2 performance was boosted by AI adoption and cloud investment. Analysts see Palo Alto as having a competitive edge in this space due to its proprietary data and technology. The company announced a partnership with IBM UK for the Emergency Services Network and added former Danish PM Helle Thorning-Schmidt and ex-UBS CEO Ralph Hamers to its board. It now expects fiscal year 2025 revenue between $9.14 billion and $9.19 billion, with Q2 revenue rising 14% to $2.26 billion. (Source)
?? Investments and Partnerships
LexisNexis Risk Solutions Acquires IDVerse To Boost AI-Powered Fraud Detection And Identity Verification
LexisNexis Risk Solutions has acquired IDVerse, an AI-powered document authentication and fraud detection provider. IDVerse’s technology, which verifies over 16,000 identity document types globally, will enhance LexisNexis’ platforms, including RiskNarrative and IDU. This acquisition improves identity verification capabilities by incorporating biometric and AI-driven fraud detection tools, strengthening fraud prevention efforts, and addressing emerging threats like AI-generated fraud and deepfakes. (Source)
SGNL Raises $30 Million To Advance Identity First Security And Real-Time Access Management
Identity management startup SGNL has raised $30 million in Series A funding, led by Brightmind Partners, totaling $42 million in funding. Its identity-first security solution automates real-time access decisions, eliminating static credentials and enhancing security. This approach improves security, reduces costs, and simplifies compliance by dynamically managing access. The new funding will aid in market expansion, product development, and support for open security frameworks. (Source)
Experian and ValidMind Partner To Automate Model Risk Management and Enhance Compliance
Experian and ValidMind have partnered to enhance model risk management by integrating ValidMind’s governance automation with Experian’s Ascend Platform. This collaboration aims to boost regulatory compliance, operational efficiency, and model governance by automating documentation, validation, and monitoring. It supports financial institutions in meeting compliance requirements like SR 11-7 and the EU AI Act, while facilitating faster adoption of AI-driven models. Early adopters report improved audit readiness and reduced documentation timelines, setting a new industry standard for scalable model risk management. (Source)
Hightouch Raises 80 Million In Series C, Doubling Valuation To 1.2 Billion
Hightouch , a customer data platform startup, has raised $80 million in a Series C round led by Sapphire Ventures, doubling its valuation to $1.2 billion. Co-founded by former Segment executives, Hightouch helps marketing and sales teams synchronize data warehouses with various tools, utilizing AI for personalization and automation. Key products include its CDP for marketing campaigns and AI Decisioning, which optimizes customer engagement. Launched in August 2024, strong demand for AI Decisioning drove the funding, despite the company's previous financial efficiency. Hightouch serves major clients like Spotify and PetSmart, aiming to expand its AI capabilities. (Source)
Menlo Security Acquires Votiro Cybersec To Enhance Zero Trust File And Data Security Capabilities
Menlo Security Inc. has acquired Votiro Cybersec Ltd. to boost its zero-trust file and data security capabilities by integrating Votiro’s technology into its browser security solution. Votiro’s ZT Cloud platform removes file-borne threats from emails, web downloads, and collaboration tools, and integrates with AWS, Microsoft Azure, and Zscaler. This acquisition enhances Menlo’s provision of zero-trust access for enterprise workflows and prevents data leakage. CEO Amir Ben-Efraim emphasized that this move strengthens Menlo's market leadership with a comprehensive workspace security solution. Prior to the acquisition, Votiro raised $32.5 million in venture capital from investors like Harvest Lane Asset Management and Senetas Corp. (Source)
Bain Capital Withdraws From Fuji Soft Bidding War As KKR Strengthens Position
Bain Capital has discontinued its pursuit of Fuji Soft, ending its bidding war with KKR for the Japanese software company valued at over $4 billion. After planning a tender offer at ￥9,600 per share, Bain opted out following discussions with founder Hiroshi Nozawa. In contrast, KKR raised its offer to ￥9,850 per share and extended the tender period, having already secured a one-third stake in the company. This pattern highlights the growing influence of foreign private-equity firms in Japan’s M&A market as companies restructure. (Source)
UK Partners With Anthropic To Boost AI-Driven Digital Services And Economic Growth
The UK government has signed a Memorandum of Understanding with Anthropic to explore how AI can enhance access to online services, underscoring a commitment to responsible AI and digital identity. This partnership aligns with Prime Minister Keir Starmer’s goal of AI-driven economic growth, potentially generating ￡100 billion in tax revenues by 2040, while also aiming to sustain the UK's digital leadership amidst global shifts and concerns over AI governance. (Source)
Drata Acquires SafeBase for $250 Million to Strengthen Security Compliance and Trust Management
Drata has acquired SafeBase , a software security review startup, for $250 million to enhance its trust, governance, and risk management services. SafeBase will operate independently, with its co-founders in leadership roles, while integrating its security questionnaire automation into Drata’s platform. This acquisition responds to growing demand for trust management solutions due to increased reliance on third-party vendors and stricter regulations. Drata, which has raised over $300 million and serves over 7,000 customers, aims to create a seamless compliance and risk management ecosystem, solidifying its leadership in security automation. (Source)
?? Policy and Regulatory
DeepSeek Halts Chatbot App Downloads in South Korea Amid Privacy Concerns
DeepSeek AI , a Chinese AI startup, has paused downloads of its chatbot apps in South Korea due to privacy concerns raised by the Personal Information Protection Commission. The apps were removed from the App Store and Google Play, with DeepSeek agreeing to enhance privacy protections before relaunching. While existing users can still access the app, authorities advise against entering personal information. Concerns include unclear third-party data transfers and excessive data collection. Many South Korean agencies and companies have restricted the app's use, with DeepSeek having around 1.2 million users in the country as of late January, second only to ChatGPT. (Source)
Norway Indicts Four for $87 Million Crypto Fraud and Money Laundering Scheme
Norwegian authorities have indicted four individuals in an $87 million cryptocurrency fraud and money laundering scheme that defrauded thousands globally. The scam, disguised as a multi-level marketing operation, sold "product packages" with false promises of lucrative investments in gas, mining, and real estate. Investigators found no real investments were made, and it operated as a Ponzi scheme, using new deposits to pay earlier investors. Over 700 million kroner was laundered through a Norwegian law firm and transferred to accounts in Asia, aided by professional facilitators.?(Source)
UK Government Pressures Apple to Weaken iCloud Encryption, Sparking Privacy Concerns
Brazil has established a Federal Biometric Service to manage the issuance of the national identity card (CIN), which requires both fingerprint and facial biometrics in accordance with NIST, ISO/IEC, and ICAO standards. The system must comply with specific false non-identification and false positive rates for various match types. The law also requires liveness detection—Level 1 for low-risk and Level 2 for high-risk transactions—based on NIST evaluations. With 20 million CINs issued since 2022, the government plans to release its implementation strategy within 90 days, integrating this biometric service with the Gov.br digital identity system. (Source)
US Court Ruling Against Ross Intelligence Sets Key Precedent In AI Copyright Law
A recent U.S. ruling against Ross Intelligence determined that using Thomson Reuters’ copyrighted headnotes for training its AI legal research platform infringes copyright, establishing a precedent in AI copyright law. This decision poses challenges for AI companies facing over 39 similar lawsuits by emphasizing the commercial impact of use rather than transformative fair use. While it doesn’t directly affect companies like OpenAI and Midjourney, it bolsters copyright holders' positions, and experts believe the reasoning could apply to generative AI models, although the legal landscape is still evolving and may change on appeal. (Source)
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