Week of April 8, 2024

Explore the cutting edge of innovation and security with The State of Identity, your weekly source for the latest in Digital Identity, Financial Crime & Compliance, and IT Security, featuring engaging industry news and expert insights.

FTC's Voice Cloning Challenge Won by Pindrop Amid Rising Deepfake Frauds

Pindrop won the FTC's Voice Cloning Challenge to curb voice fraud, along with smaller entities AI Detect, DeFake, and OriginStory. Pindrop's real-time technology detects synthetic voice samples using biometric liveness. DeFake proposed voice sample watermarking, and OriginStory used sensor data for speech authenticity. The FTC is pushing new regulations to combat deceptive practices amidst rising AI fraud. (Source)

Global Summit Tackles Age Assurance in Digital Era, Balancing Youth Protection with Digital Rights

Experts from different countries discussed age assurance to protect minors online while balancing digital rights at the Global Age Assurance Standards Summit. Baroness Beeban Kidron criticized tech companies for not prioritizing age assurance, pointing out that platforms like Instagram know user preferences but not their age. Germany’s "regulated self-regulation" approach allows flexibility in meeting age verification standards. At the same time, Spain's Data Protection Authority proposed a decalogue based on GDPR principles that emphasizes privacy and accuracy in age verification to inspire innovation in the market. These discussions highlight the challenges of implementing effective age verification systems in evolving digital landscapes. (Source)

New Zealand Seeks Public Input on Draft Biometric Technology Rules to Balance Privacy and Innovation

The Office of the Privacy Commissioner in New Zealand has released draft rules for the use of biometric technologies and is seeking public input. The consultation seeks to balance the benefits of biometrics against risks like surveillance and discrimination. Feedback on the draft rules is encouraged by May 8, 2024, to ensure technological advancements in biometrics are harnessed safely and respect privacy rights. (Source)

AI-Powered Face Scanners for Tobacco Sales Launch in the Netherlands to Enforce Age Restrictions

In the Netherlands, AI-powered face scanners are installed on tobacco vending machines to enhance age verification processes. These machines, called NIX18, were developed by H@ND in collaboration with authorities and privacy organizations. They use facial recognition to permit purchases for those over 25, while alternative methods are available for those under 25. All personal data is deleted after the transaction. (Source)

X Joins Major-Tech Giants in Global Rollout of Passkeys for iOS Users

X has expanded passkeys to all global iOS users, aligning with major platforms like PayPal , TikTok , and 谷歌 . Passkeys use biometric authentication, PINs, or physical security keys for passwordless logins, merging the advantages of two-factor authentication into a single step. (Source)

Worldcoin Updates Enhance Privacy and Age Verification, Bolstering Digital ID Security

The Worldcoin initiative, led by OpenAI CEO Sam Altman, has introduced updates to improve personal data protection and age verification. World ID holders can now unverify their IDs through iris code deletion, while users aged 18 and above are required to undergo in-person age checks. These updates were developed in collaboration with privacy experts and regulatory bodies like the Bavarian State Office for Data Protection Supervision to address privacy and security concerns and ensure compliance with legal standards. (Source)

Malaysia Delays MyDigital ID Public Rollout to Enhance Integration, Aiming for Global Digital ID Model

Despite being ready for a March rollout, Malaysia’s MyDigital ID program has delayed its public launch until May to integrate with more websites and apps. The system will facilitate electronic KYC processes and transaction authorization for financial entities. The app will be available to the public by July, serving as a digital complement to the MyKad ID card for government and online services. The project is also working on integrations with platforms like MyGov Portal and HRMIS. The Malaysian government assures the safety of the MyDigital ID and PADU systems, aiming for future cross-border applicability and serving as a model for digital IDs globally. (Source)

AI Firms Navigate Legal and Ethical Challenges in Sourcing High-Quality Training Data

AI companies are facing challenges in obtaining high-quality training data for their Large Language Models (LLMs) and have been using vast amounts of online content to improve their models. However, this practice has raised questions about copyright law and the ethical use of digital content. Despite recent lawsuits, the scarcity of high-quality data is leading companies to take legally ambiguous approaches to obtain it. (Source)

UK Home Office Invests ￡55.5 Million in Facial Recognition to Combat Shoplifting, Amid Civil Liberties Concerns

The UK Home Office is providing ￡55.5 million to police forces to improve facial recognition technology for better crowd surveillance in high streets. This is part of a wider effort to tackle shoplifting, which includes GPS tagging for repeat offenders. However, there are concerns about privacy and calls for a legal framework to regulate its use. There are also new policies that involve GPS tagging for repeat shoplifters and harsher penalties for assaulting retail workers. (Source)

Entrust Bolsters Defense Against Deepfakes with Onfido Acquisition

Entrust has finalized its acquisition of Onfido , a move aimed at increasing its capabilities against deepfakes and AI-powered cyber threats. Onfido, known for its identity verification technology, has become a part of Entrust’s suite of AI-driven, identity-focused security solutions. This acquisition comes when identity fraud is increasingly prevalent, with Onfido’s recent report highlighting a 3,000% surge in deepfake incidents and a 5x increase in forged identities in 2023 alone.(Source)

Cyera Hits $1.4 Billion Valuation with $300 Million Series C Funding for AI-Driven Data Security

Cyera , a startup providing an AI-based data management and security platform, has raised $300 million in a Series C funding round led by Coatue. The investment elevates Cyera's valuation to $1.4 billion and will support its expansion and enhancement of offerings to provide comprehensive data security solutions. The platform helps organizations track the location and movement of their data to prevent cyberattacks and unintentional data leaks. Cyera has raised a total of $460 million in three years, attracting attention from top-tier investors and customers worldwide. (Source)

Novidea Secures $30 Million in Series C Funding for Global Expansion and Insurance Tech Innovation

Novidea , an insurance management platform, raised $30 million in Series C funding from HarbourVest Partners, bringing the total to $80 million. The funds will be used for global expansion, product innovation, and potential acquisitions. Novidea aims to meet the demand for modern insurance solutions that enhance data quality, customer experience, and operational efficiency. The platform automates processes and bolsters business resilience. (Source)

Identiv Sells Security Divisions to Vitaprotech for $145M, Pivots to IoT Expansion Under New Leadership

Hirsch is selling its physical security and biometric identity reader divisions to Vitaprotech for $145 million as it aims to become a leader in IoT solutions under the leadership of Kirsten Newquist. Following the sale, Newquist will become Identiv's CEO, leveraging her experience at Avery Dennison. Identiv's strong performance in digital identity and IoT solutions was reflected in its record revenue and the shipment of nearly 200 million RFID units in fiscal 2023. (Source)

Ellipsis Labs Secures $20M in Series A Funding to Fuel DeFi Growth with Phoenix DEX on Solana

Ellipsis Labs aims to transition mainstream finance to blockchain technology and has successfully raised $20M in a Series A funding round led by Paradigm, with contributions from Electric Capital and over 30 other crypto industry leaders. The company's flagship project, Phoenix, is a leading on-chain order book DEX on Solana that has achieved top 5 status in spot volume without the need for liquidity incentives. Ellipsis Labs envisions the future of decentralized finance (DeFi) as combining the benefits of decentralization with the liquidity and efficiency of traditional finance. The newly acquired funds will be directed toward advancing the DeFi sector and enhancing its infrastructure and capabilities. (Source)

Greylock McKinnon Associates Hit by Major Data Breach, Exposing Over 340,000 Social Security Numbers

Greylock McKinnon Associates (GMA), a U.S. consulting firm, suffered a data breach resulting in the theft of 341,650 social security numbers. The hackers accessed personal information, including names, dates of birth, phone numbers, and health and Medicare details. The breach was discovered in May 2023, but affected users were only notified in February 2024, raising concerns about the delay in communication. GMA provides support to various U.S. agencies and companies, including the Department of Justice, amplifying the breach's potential impact on legal proceedings and organizational trust. The firm has engaged cybersecurity experts and law enforcement, offered affected users free credit monitoring services, and taken measures to bolster security. (Source)

Introducing the American Privacy Rights Act: A Bipartisan Effort to Unify U.S. Data Privacy Standards

The American Privacy Rights Act (APRA) aims to unify data privacy standards across the US. It supports consumer rights to manage their personal data online and opt out of targeted advertising. The APRA integrates aspects of existing state laws and introduces mechanisms for legal recourse in case of data breaches. The legislation is in its early stages and shrouded in uncertainties. (Source)

Meta Tackles Deceptive Content with New 'Made with AI' Tags Ahead of U.S. Elections

Meta announced new policy updates for digitally created content to prevent the spread of deceptive media before the US elections. The updates include a "Made with AI" tag to label AI-generated content and more prominent labels for misleading media. These changes apply to Facebook, Instagram, and Threads. (Source)

EU and U.S. Pledge to Strengthen AI Cooperation, Addressing Safety, Governance, and Human Rights

The EU and the US have agreed to enhance AI cooperation, focusing on AI safety, governance, and broader technological issues. This initiative was announced at the sixth meeting of the EU-U.S. Trade and Technology Council, with a plan for AI oversight bodies to engage in deeper collaboration. The joint efforts aim at advancing AI for sustainable development, focusing on global challenges in healthcare, agriculture, and climate change. (Source)

Microsoft Criticized for Security Failures by U.S. Cyber Board After Major Exchange Breach by Chinese Hackers

Last summer, Microsoft had a cybersecurity breach on its Exchange online platform that affected millions of users and was identified as an attack by a China-based threat actor. The U.S. Department of Homeland Security’s Cyber Safety Review Board issued a 34-page report condemning Microsoft’s security practices as "inadequate" and recommended that Microsoft prioritize security over new feature developments. (Source)

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