States reconsider facial recognition for ID verification
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As privacy concerns mount and demand winds down, several states are rethinking their use of ID.me's facial recognition technology to verify users applying for unemployment insurance benefits.
As the use of facial recognition technology for identity verification falls out of favor following the IRS' reversal of its policy that would have required users of a new online filing service authenticate themselves with a selfie through the ID.me app, states are also rethinking their use of the tech.
Following concerns raised by privacy advocates and members of Congress, the Treasury Department directed the IRS to transition away from the use of ID.me in direct online filing and "quickly develop and bring online an additional authentication process that does not involve facial recognition."
Use of the technology for unemployment insurance claims was also questioned. In a Feb. 15 letter, Sens. Elizabeth Warren (D-Mass.), Ron Wyden (D--Ore.) and Sherrod Brown (D-Ohio) urged Labor Secretary Marty Walsh to ensure that people applying for unemployment benefits have identity verification options that protect their privacy. Noting that half the states use ID.me for UI claims, the senators said that "facial recognition should not be a prerequisite for accessing UI or any other essential government services."
Since then, the Massachusetts Department of Unemployment Assistance said it would drop its use of ID.me, which was first rolled out to speed up authentication for benefits after several states' unemployment programs were targeted in a fraud scheme that used stolen identity information, according to a report in the Boston Herald.
Over 46,000 residents used ID.me between March 2021 and February 2022 to validate their IDs and apply for unemployment benefits, the paper reported. Now that the number of new claims has declined and fraud attempts have dropped off, the agency said it plans to discontinue the facial recognition program but did not specify that it was ending the program due to privacy concerns.
California's Employment Development Department contracted with ID.me in 2020 to fight unemployment fraud, but renewal of the program is under review as the Legislative Analyst's Office asked the legislature to hold off and consider alternatives.
In its Feb. 15 report, the office acknowledged that ID.me did help reduce fraud but noted that the company CEO "admitted to misleading clients." Besides using the one-to-one matching of a selfie image to the picture on a government issued ID used for identity verification, the company was also making one-to-many matches, comparing selfie images to pictures in large databases so it could help identify fraudulent actors who claimed multiple benefits.
The technology's accuracy was also a matter of concern. Oregon's Employment Department used ID.me for identity verification until last fall when it began to deploy alternative technologies. Department Director David Gerstenfeld told the Longview News Journal that the system had difficulty verifying the identity of young workers, Latinx, Black and Native Americans as well as people who lacked access to smartphones.
Earlier this month, ID.me announced it would offer a new option to government customers – one that verifies identity without using automated facial recognition but rather uses a human agent through video chat or in-person to make the authentication.
On Feb. 24, the company announced a new Human in the Loop team dedicated to ensuring equitable access to digital services. Agents review all users who fail the ID card or selfie step in real-time. If the information passes manual review, users can continue identity verification through the automated process. If the human agent is unable to verify the identity, users are then directed to a one-to-one live video chat where their identity is verified with a human agent.
Company officials said early results show Human in the Loop reduces by 18% the number of users who need to verify through video chat.
Last year, ID.me partnered with Sterling Check Corp. to offer an identity verification service for users without smartphones that allows those users to present themselves at a Sterling location for verification by a trained staff member.
ID.me has partnerships with 30 states, 10 federal agencies and over 500 name brand retailers.