FB pixel

Coinbase sued under Biometric Information Privacy Act

Coinbase sued under Biometric Information Privacy Act
 

It was a matter of when not if. A cryptocurrency company has been accused of violating the U.S. state of Illinois’ biometric privacy law.

A proposed class action has been filed in federal district court alleging that Coinbase has not followed the rules when it comes to collecting and using the biometric data of Illinois residents.

The case (3:23-cv-02123), filed by Michael Massel, alleges that Coinbase required biometric scans of its customers without getting their express consent or saying how their data would be managed.

According to the lawsuit, Massel, opened an account with Coinbase in 2018. Enrollment required sending an image of a state ID and a selfie that becomes a template.

The company reportedly also requires a fingerprint scan as part of creating a wallet.

Biometric data is collected every time a subscriber logs in using Coinbase’s mobile app, court documents allege. The language in the filing strongly suggests, however, that the fingerprint authentication is carried out on the user’s device, meaning that Coinbase itself does not collect fingerprint biometric data.

A number of third-party companies reportedly would see at least some biometric data. Those companies can be found in Coinbase’ privacy disclosure and include Jumio, Onfido, SolarisBank and Sift Science. Jumio and Onfido each provide selfie biometrics as part of KYC checks for user onboarding.

The company also is defending itself against an insider-trading lawsuit alleging that that executives including CEO Brian Armstrong used insider information around the time Coinbase went public.

Article Topics

 |   |   |   | 

Latest Biometrics News

 

Cake is Vietnam’s first digital bank to pass iBeta Level 2 PAD test

Cake Digital Bank has become the first digital-only bank in Southeast Asia to pass iBeta’s test for detecting sophisticated face…

 

Wikipedia says OSA categories ensnare it in IDV regulations targeting social media

The Wikimedia Foundation, which runs Wikipedia, has launched a legal challenge to the UK’s Online Safety Act (OSA), claiming that…

 

50-in-5 DPI campaign adds Jamaica and Mexico

The 50-in-5 campaign which is a collaborative effort aimed at helping countries of the Global South to design, develop, and…

 

Swedish police seek mobile fingerprint readers in $7.6M tender

The Swedish police have issued a tender seeking mobile biometric fingerprint readers with integrated passport readers. The estimated value of…

 

Banks struggle to fight fraud with AI, reusable ID could help

The vast majority of financial institutions – around 90 percent – are leaning on some form of AI to combat…

 

Regulator presses TFH for details on World biometric data collection in Indonesia

Indonesia government officials are exploring the potential misuse of biometric data and may require the deletion of 500,000 iris data…

Comments

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Biometric Market Analysis

Most Viewed This Week

Featured Company

Biometrics Insight, Opinion

Digital ID In-Depth

Biometrics White Papers

Biometrics Events