World’s success in LatAm is based on dubious grounds, says digital rights activist

Digital identity project World has nearly 40 million app users and over 17 million verified humans – many of whom are in Latin America. Critics, however, argue that the company’s success in countries like Brazil, Colombia and Chile is the result of a weak rule of law and sophisticated technological processes that allow the company to avoid data protection rules.

​Latin American countries have been struggling to enforce decisions by authorities against foreign companies, says Lucía Camacho, a Colombian public policy coordinator at the NGO Derechos Digitales (Digital Rights).

In October last year, Colombia ordered a closure of the proof-of personhood (PoP) project over data protection law violations, prohibiting World Foundation and Tools for Humanity from collecting personal information and ordering them to delete sensitive personal data, codes and iris biometric templates. Both companies are involved in World.

World’s strategy towards the decision was to dispute the proceedings and feign ignorance, according to the digital rights activists.

“The toolbox they have for exerting pressure in our countries is very diverse,” Camacho says in an interview with El País. “It ranges from legislative lobbying and public relations investment to claims that these are positive measures for the country, to judicial intimidation.”

World relies on biometric iris scanning devices called Orbs, turning the user’s iris scans into an alphanumeric hash, which is the basis of the World ID. The raw iris image is deleted in the process, while the hash is stored on trusted servers, primarily in the U.S.

Technologies such as these are allowing companies to transform personal data, making it easier for them to evade data protection authorities by arguing that no personal data is being used.

“The company’s argument is that, since they are applying ‘a technological process, the data is no longer personal, therefore, we no longer have obligations in this matter.’ This is the major problem,” says Camacho.

The sophisticated operations and the technology are also designed to hinder the practical exercise of the right to consent and withdrawal of data, she adds.

In Chile, parents of children who have submitted iris scans to the company filed a legal request to delete the data. World defended itself by arguing that the company was not based there.

In January last year, the Supreme Court of Chile ordered World to erase all records of the biometric data of a 17-year-old. But Camacho highlights that companies such as World hire local logistics operators without adequate training on issues such as consent.

“They are not trained on how to ensure that the person registering is of legal age – something that is especially sensitive, because minors are registered, as happened in Chile,” she says. “Nor are they taught how to explain what consent entails, what compensation consists of, how to withdraw data, or how to exercise rights over that personal information.”

Another legal issue the company is facing in Latin America is over its cryptocurrency. An investigation by Chilean non-governmental organization Amarantas found that single mothers with economic needs were the majority of those who handed over their biometric data to World.

Last year, Brazil’s data watchdog banned Tools for Humanity from offering cryptocurrency or financial compensation in exchange for biometric data, ruling that financial incentives could influence people’s consent – especially if they are in a vulnerable position.

“The incentives become lifelines that ultimately exploit the data of those with no other economic alternative,” notes Camacho.

A Brazilian parliamentary commission is currently investigating the company.

Meanwhile, World seems to be doubling down on Latin America. The company announced a program last year to boost startups in the region, offering scholarships, technical support and access to the World ecosystem.

Article Topics

biometrics  |  data protection  |  iris biometrics  |  Latin America  |  Tools for Humanity  |  World  |  World ID