Week of June 24, 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.

Algorand Launches LiquidAuth for Decentralized, Secure Wallet Communication

Algorand Technologies has introduced LiquidAuth, an open-source tool for decentralized authentication and communication between wallets and apps, to reduce reliance on centralized providers like WalletConnect. LiquidAuth is designed for secure and private peer-to-peer communication, applicable in both Web3 and Web2 environments. It uses open standards such as FIDO2/Passkeys for authentication without storing user data, eliminating the need for a central server. This tool addresses vulnerabilities in digital asset protection by offering a more secure alternative to traditional authentication methods. Despite advancements in crypto payment systems, widespread adoption in eCommerce still faces significant challenges. (Source )

Vietnam Implements Biometric ID Law to Enhance Digital Transformation and Banking Security

Vietnam's new Law on Identity, mandating biometric data use, will be implemented on July 1. The law requires iris, fingerprint, and facial biometrics for ID cards to enhance accuracy and security. It aims to streamline administrative procedures, improve online services, and support socio-economic development. The banking sector is expected to benefit, despite challenges in remote verification. New banking regulations will require biometric authentication for high-value transactions. (Source )

UK Proof of Age Standards Scheme Accredits Three Yoti Digital ID Apps for Age Verification

The UK's national Proof of Age Standards Scheme (PASS) has accredited three digital ID apps—Yoti ID, Post Office EasyID, and Lloyds Bank Smart ID—for proof of identity and age. These digital IDs can be used for purchasing age-restricted goods online and in various scenarios requiring age assurance. However, UK digital IDs cannot yet be used as in-person identification for alcohol-licensed premises. Yoti CEO Robin Tombs claims that over 4 million UK individuals have already downloaded a digital ID application. (Source )

Apple and Meta Discuss Integrating Generative AI Model Amid Privacy Concerns and New AI Alliances

苹果 and Meta are in talks to integrate Meta’s generative AI model into Apple Intelligence for iPhones and other devices. This collaboration could help AI companies increase subscription sales via Apple devices. However, integrating Meta’s AI model raises privacy concerns for iPhone users. Clear and transparent policies would be necessary to maintain user trust and uphold Apple's commitment to user privacy. (Source )

YouTube Enhances Privacy Protection by Allowing Users to Report AI-Generated Misuse of Their Face or Voice

YouTube enhances user privacy by allowing users to report AI-generated content that misuses their face or voice. This new feature is part of YouTube’s existing Privacy Complaint Process, which requires users to fill out a detailed form and provide evidence of the privacy violation. The offending video is removed from the platform if the complaint is verified. This move comes in response to the growing issue of deepfakes and AI-simulated content that can impersonate individuals. YouTube aims to safeguard its users from potential misuse of their identity while maintaining platform integrity and preventing harassment. (Source )

Odaseva Secures $54M in Series C Funding to Enhance Salesforce Data Protection and Security Solutions

Odaseva , a startup specializing in securing Salesforce environments, has raised $54 million in a Series C funding round led by Silver Lake Waterman Fund LP , bringing its total funding to $90 million. The company, founded by Sovan Bin, who formerly worked at Salesforce, offers solutions like data protection, zero-trust security, data archiving, compliance, and platform services. Despite competition from other firms and Salesforce itself, Odaseva has gained significant traction, boasting over 100 million users and notable clients like Accor, Schneider Electric, and Michelin. This funding comes amidst a broader trend of enterprises preferring comprehensive security platforms over point solutions. (Source )

Verituity Secures $18.8 Million to Enhance AI-Driven Payout Solutions

VERITUITY has raised $18.8 million in funding led by Sandbox Industries and Forgepoint Capital . The investment aims to accelerate growth in banking, insurance, mortgage servicing, and energy sectors while enhancing AI and machine learning capabilities. Chris Zock of Sandbox Industries will join Verituity’s board of directors. (Source )

OpenAI Acquires Rockset to Boost ChatGPT’s Real-Time Analytics and Accuracy

OpenAI has acquired Rockset (acquired by OpenAI) to enhance the performance of its popular AI chatbot, ChatGPT. Rockset’s real-time analytics and data indexing technology will be integrated into ChatGPT to improve response times and accuracy, boosting the chatbot’s ability to process and analyze large datasets efficiently. This move aligns with OpenAI’s goal of maintaining its competitive edge in AI technology. (Source )

TMT ID and Fraud Intelligence Limited Partner to Enhance Global Fraud Detection

TMT ID and Fraud Intelligence Limited have partnered to enhance global fraud intelligence capabilities. This collaboration will integrate TMT ID’s TeleShield mobile number intelligence data with Fraud Intelligence Limited’s Blockchain Platform, aiming to combat fraud more effectively. (Source )

Zendesk Launches Venture Arm to Invest in AI Startups and Enhance Customer Service Solutions

Zendesk , a customer support software company, has launched a venture arm to invest in early-stage AI startups. Its venture capital division aims to allocate tens of millions of dollars from its balance sheet for investment in Seed and Series A rounds. Zendesk Ventures intends to foster innovation in the AI domain, potentially identify acquisition targets, and ensure the company remains at the forefront of AI in customer service. (Source )

APRA Draft Faces Backlash Over Algorithmic Discrimination and Economic Impact Concerns

The latest draft of the American Privacy Rights Act (APRA) is facing strong opposition from advocacy groups and industry lobbyists. The removal of the "Civil Rights and Algorithms" provision, which addressed algorithmic discrimination, has sparked concerns about potential civil rights abuses. The Lawyers’ Committee for Civil Rights Under Law criticizes the draft for failing to protect against data-driven discrimination and AI impact assessments, while the Center for Democracy and Technology (CDT) also objects, emphasizing the need to prevent discriminatory data practices. Advertising groups argue that the draft would harm the economy by restricting data collection and use. (Source )

Ransomware Attack Disrupts Indonesia’s National Data Center, Affecting Over 200 Government Agencies

An $8 million ransomware attack on Indonesia’s Temporary National Data Center (PDNS) has disrupted digital public services for over 200 government agencies since June 20, 2024. The National Cyber and Crypto Agency (BSSN) confirmed the attack. The government has refused to pay the ransom. Ongoing efforts to mitigate the disruption include accelerating digital transformation initiatives and implementing facial recognition in the Electronic Traffic Law Enforcement system. (Source )

Neiman Marcus Data Breach Exposes Personal Information of Over 64,000 Individuals

Neiman Marcus Group disclosed a data breach on Monday, revealing that personal information from a database platform was compromised between April and May 2024. The breach affected over 64,000 individuals and included names, contact details, dates of birth, and gift card numbers, though PINs were not exposed. Following the breach, a hacker named ‘Sp1d3r' claimed to sell a Neiman Marcus database on a cybercrime forum for $150,000, containing data on 180 million users, including partial Social Security numbers and extensive transaction records. This incident is part of a broader campaign targeting Snowflake cloud storage customers, affecting at least 165 organizations. (Source )

U.S. Sanctions 12 Kaspersky Executives to Enhance Cybersecurity and Counter Threats

The U.S. government has imposed sanctions on 12 senior executives of the Russia-based cybersecurity firm Kaspersky . The sanctions follow a broader ban on selling Kaspersky software in the U.S., effective July 20, 2024, with existing users losing access to updates after September 29, 2024. (Source )

Cyberattack on CDK Global Disrupts Operations for Major North American Car Dealerships

CDK Global , a software provider for car dealerships, has been hit by a ransomware cyberattack, causing system outages and impacting operations for dealerships. Attackers are demanding a large sum of money to resolve the issue. The National Automobile Dealers Association has warned dealers about potential scammers posing as CDK representatives. (Source )

DOJ to Sue TikTok Over Alleged Children's Privacy Violations Amid National Security Concerns and Potential U.S. Ban

The United States Department of Justice plans to sue TikTok for allegedly violating children’s privacy rights. The lawsuit follows an investigation by the Federal Trade Commission, but specific details of the violations have not been disclosed. TikTok expressed disappointment with the decision and legislative actions aimed at separating the app from its China-based parent company. Meanwhile, there are efforts to raise funds for a potential acquisition to avoid a possible U.S. ban. (Source )

Ticketmaster Data Breach Intensifies with 1 Million Customer Records Released on Dark Web

The Ticketmaster data breach has worsened, with 1 million customer records released on a dark web forum. Hackers initially demanded $100,000 and then publicized some records, including personal information and partial credit card details. The breach occurred on May 20 due to unauthorized activity in Ticketmaster’s third-party cloud storage provided by Snowflake . Despite this, Live Nation, Ticketmaster’s owner, believes it won’t significantly impact its operations or financial condition as it assesses risks and strengthens cybersecurity measures. (Source )

Microsoft Suspends AI-Powered Recall Feature Amid Privacy Concerns for Further Review

微软 ’s AI-powered Recall feature, designed to enhance productivity by capturing on-screen activities, has been suspended due to privacy concerns. The feature is now opt-out and disabled by default to prioritize user privacy. Microsoft plans to refine the feature through the Windows Insider Program before wider deployment, emphasizing a commitment to privacy with encryption and on-device data processing. This incident highlights the ongoing tension between advancing technology and safeguarding privacy, underscoring the need for companies to maintain transparency and adhere to robust privacy standards. (Source )

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