Recently, our industry was rocked with news of a $15 million settlement in the very public case against retail chain Parker’s Kitchen. Parker’s Kitchen sold alcohol to underage Paul Murdaugh, who, after consuming this alcohol, went on to crash a boat. The boat crash resulted in the death of 19-year-old Mallory Beach. While this is far from the first time a bar, nightclub, or store has been held liable for an underage sale, this case has attracted particular media attention due to heavy news coverage of the Murdaugh trial, with Mallory Beach’s death featuring prominently as part of the larger narrative around the South Carolina family.
The tragic consequences of an alcohol sale that never should have happened – a young girl’s life – weigh heavy on our team, and the larger community.
The accident was caused by, then 19 year old, Paul Murdaugh. Murdaugh purchased beer from Parker’s Kitchen using his older brother’s ID. While the ID was technically real, the face in the ID picture would not have matched Paul’s face; this scenario is known as someone using a “false ID.”
As we navigate the complex landscape of alcohol sales, the importance of robust age verification mechanisms cannot be overstated. The US is a society that values personal freedom, responsibility, and privacy, but in many cases this results in lax policies when it comes to age verification and ID checks. Beyond a mere regulatory requirement, age verification serves as a critical tool to mitigate the staggering human impact of underage drinking, prevent tragic drunk driving accidents, and uphold ethical business practices.
Young lives marred by alcohol-related health problems, addiction, and a disrupted path toward personal growth are a stark reminder of the need for diligent age verification.
But the impact of age verification extends beyond the realm of personal well-being. Drunk driving accidents continue to haunt our roads, leaving trails of heartache and despair. In the United States alone, the Centers for Disease Control and Prevention reports that nearly 30 people die in alcohol-impaired driving crashes every day and individuals under 21 are grossly over-represented in these statistics. Many of these accidents involve young individuals who, either by illegal means or lax enforcement, gained access to alcohol without proper age verification.
In addition to the human impact, businesses selling age restricted products risk large fines or loss of licensure due to underage sales. Just this year, thousands of businesses have been negatively impacted due to unwitting sales to minors, or held liable for outcomes of these sales.
We work with businesses every day who are looking to put age verification systems in place to avoid these types of risk, and to take advantage of affirmative defense laws which allow them to confidently state they did everything they could to prevent underage sales.
Furthermore, responsible business practices enhance brand reputation and consumer trust. A brand that prioritizes age verification sends a powerful message: it values the well-being of its customers and the communities it serves. Such businesses become leaders in their industry, setting a standard for accountability that encourages others to follow suit.
In a world characterized by rapid technological advancement, age verification solutions are becoming increasingly sophisticated and accessible. From ID scanning technologies to robust online verification processes, the tools to ensure responsible alcohol sales are readily available. Implementing these measures not only safeguards lives and promotes public safety but also strengthens the fabric of our communities.
How to catch fake IDs
Having worked in the identity verification technology space for nearly a decade, I have seen firsthand the rapidly growing sophistication of fakes. They look nothing like the McLovin ID from the movie Superbad with obviously fake details and a grainy photo. In many cases they are indistinguishable from a valid ID to the naked eye. As many as 40-50% of fake IDs now scan, which means that their barcode is formatted to be read by an ID scanner. And most attempt at least a rudimentary hologram or watermark.
ID authentication – a process in which the ID is examined in infrared and ultraviolet light, checked against algorithmic format templates, and has its barcode reviewed for known flaws, is the only way to catch 95% of fakes. Although Paul Murdaugh was using a false ID, that would have passed even ID authentication (because it was his brother’s legitimate ID), the mere presence of an ID scanner would have likely been a major detergent and it would have demonstrated to Paul Murdaugh that Parker’s Kitchen was taking age verification seriously. Additionally, an ID scanner would have done the hard part of verifying the ID’s legitimacy, leaving the retail attendant to simply match Murdaugh’s face to the face on the ID.
While ultimately accidents will still happen, and nobody man or machine will be able to catch 100% of fake IDs, it is vital that businesses be proactive to ensure no more innocent lives are lost in preventable accidents. Connecting businesses with the technology that can save lives is more relevant than ever.
https://idscan.net/wp-content/uploads/2023/08/why-were-passionate-about-ID-scanning-and-age-verification-scaled.jpg17072560Jillian Kossmanhttps://idscan.net/wp-content/uploads/2022/05/IDScan.net-Logo-300x137.pngJillian Kossman2023-08-31 14:51:492023-08-31 14:51:56Why we’re passionate about ID scanning and age verification
H.R.4258, also known as the Improving Digital Identity Act of 2021, is a bill that was introduced in the United States House of Representatives in September 2021. The bill achieved strong support from both Democrats and Republicans due more than $60B in unemployment fraud during the 18-month period beginning in April 2020, as well as COVID-19 and PPP loan fraud perpetrated against businesses and individuals. As many supporters noted, there is no easy, affordable, or reliable way for government agencies or businesses to verify whether individuals are who they purport to be.
The Digital Identity Act aims to establish a grant program for the development and implementation of secure and interoperable digital identity verification systems.
In 2022, this bill was placed on the U.S. Senate legislative calendar with the goals of:
Awarding grants to states, local, tribal, and territorial governments to upgrade systems that provide drivers’ licenses or other types of identity credentials to support the development of highly secure, interoperable systems that enable digital identity verification.
Submitting to Congress a report on the estimated potential savings, due to the increased adoption and widespread use of digital identification, of (1) the federal government from averted benefit fraud, and (2) the U.S. economy and consumers from averted identity theft.
Publishing guidelines for federal and state agencies to consider when implementing digital identity programs
The bill was passed with bipartisan support due to digital identity verification‘s role in cybersecurity and preventing identity theft.
Scaling up Login.gov
A leaked email in February 2023 shared the drafts of an executive order which mulled the scaling up of login.gov, a digital identity service already in place and run by the General Services Administration (GSA).
Login.gov is a secure and user-friendly authentication platform developed by the United States Government to provide a single sign-on solution for users accessing government services and applications. The platform allows users to create a single account that can be used to access a variety of government services, eliminating the need to create and manage multiple accounts for each agency.
Login.gov was developed as part of the US government’s efforts to improve the security and usability of digital services for citizens. It uses modern encryption and security protocols to protect user data and prevent unauthorized access to government systems.
The platform is currently used by a variety of government agencies, including the Department of Veterans Affairs, the Internal Revenue Service, and the Social Security Administration, among others. It is essentially a government-sponsored single-sign on (SSO).
The drafted executive order focused on agencies that offer “high impact” public services by the Office of Management and Budget. These agencies, including the Census, passport renewal, and the IRS (which uses the controversial ID.me technology) would be tasked with developing plans to add Login-dot-gov as a sign-on and identity verification option.
Login.gov currently verifies individuals using their photo ID, in addition to KBA questions based on public records. This service is performed by Experian, best known as a consumer credit agency. Management of official, government identity by private companies has been controversial at best.
“Millions of Americans have had to turn over their biometric information to private companies in order to access essential government services with little clarity on how their information will be safeguarded.”
https://idscan.net/wp-content/uploads/2023/04/digital-identity-act-2023-idscan.net-header.jpg6561400Jillian Kossmanhttps://idscan.net/wp-content/uploads/2022/05/IDScan.net-Logo-300x137.pngJillian Kossman2023-04-26 13:56:392023-05-01 09:52:44Business Impacts of the 2021 Digital Identity Act
Today, our Director of Cannabis Business, Kenny Peddicord, provided public testimony in opposition to Nevada Bill 342.
We are sharing the text of that testimony below in an effort to be as transparent as possible with our Nevada cannabis industry partners, and our Nevada cannabis customers. We oppose this bill for many reasons, but largely because we understand Nevada dispensaries to be among the most diligent in the nation, working under some of the country’s strictest age verification laws. We don’t agree with additional, restrictive laws, that are simply designed to line our competitor’s wallets by making you pay for every ID that is scanned.
IDScan.net’s Opposition to Nevada Bill AB342
We are the long-term age verification provider for more than 75% of Nevada dispensaries.
According to our most recent data review, performed this week across our clientbase of Nevada dispensaries, roughly 2% of IDs presented at Nevada dispensaries are flagged as potentially fraudulent. But I want to emphasize that they are flagged.
The State of Nevada already requires digital ID scanning, and has already set a standard that protects minors, catching 95-98% of fake IDs using high-resolution, multi-wavelength document authentication. The current requirements include not-only scanning of the 2D barcode, which can catch roughly 50% of fakes, but also UV/IR light, hologram examination, and watermark examination.
AB342 is a solution searching for a problem that doesn’t exist.
In addition, the method of age verification proposed in AB342 (checks against a third party database) is an inferior method of age verification as compared to document authentication:
Current public record databases of issued IDs, such as DMV databases through the American Association of Motor Vehicles, do not include all states. Large states such as California and New York do not participate in open database sharing. Any company that purports to have access to a 50-state database of current, valid IDs, is being misleading.
There are no commercially available databases of internationally-issued IDs. Given Nevada’s popularity as a destination for international tourism, dispensaries must be able to verify age using international passports.
Checks against a third party database have a per-scan cost. Nevada dispensaries are collectively scanning hundreds of thousands of IDs on a weekly basis – per scan fees will be an undue financial burden on these small businesses, without actually improving the safety of minors.
Third party checks require an internet connection and will not work offline.
95-98% of fake IDs can already be detected under the current NCCB guidelines. Switching to a model that requires querying a third-party database introduces many gaps and challenges in coverage, both with US IDs, and in particular with international documents, as well as PII and privacy risks.
AB342 is not in the best interest of the state, does nothing to improve dispensary security or the safety of minors, and is simply a lobbyist push to create a more favorable regulatory environment for their client.
Next Steps on Bill AB342
Although we are confident that Bill AB342 will, at minimum, be reworked, we believe the more voices in opposition, the better!
We recommend taking a few minutes to note your opposition on the Nevada Legislature website and/or contacting the sponsors of the bill.
Watch the full Assembly Judiciary Committee Meeting
Contact us with your thoughts
Reach out to our team at marley@idscan.net any time to let us know your thoughts on Nevada AB342.
https://idscan.net/wp-content/uploads/2023/03/Kenny-Peddicord-IDScan.net-Nevada-Cannabis-Dispensaries-Hero.png268729Jillian Kossmanhttps://idscan.net/wp-content/uploads/2022/05/IDScan.net-Logo-300x137.pngJillian Kossman2023-03-23 12:34:202023-04-12 13:35:01Nevada Bill AB342 - Third Party Checks for Age Verification
A few weeks ago, we received news that Panasonic was planning to make substantial changes to their ID scanning hardware lineup, including the TOUGHBOOK line. Our team internally began planning for these changes, while awaiting official word from our contacts in the Panasonic HQ.
Panasonic confirmed publicly today that it will be divesting from its entire Android portfolio, including the FZ-N1 TOUGHBOOK handheld ID scanner.
The N1 has been a staple of the IDScan.net handheld scanning portfolio for some time and is a favorite of bars, nightclubs, casinos, and dispensaries due to its durability. It has been one of our best-selling products for more than two years, and we have many clients who have standardized operations around this portable ID scanner.
We want to reassure our clients of our continued commitment to supporting their ID scanning needs, and provide some guidance on next steps for N1 owners.
When will the N1 be officially sunset?
Panasonic will take its final orders for manufacturing runs of the N1 TOUGHBOOK ID scanner in Summer 2023.
Software support will continue through August 2027.
Hardware and parts support will continue through August 2029.
Will VeriScan continue working on the N1?
Absolutely. You will not experience any changes in service on your existing Panasonic scanner.
Is the warranty on my N1 still valid?
Yes. Your manufacturer’s warranty and any extended warranties you purchased are still valid and will be honored.
Will more Panasonic N1’s be available to purchase?
Panasonic has committed to a final production run of FZN1 TOUGHBOOK line scanners. If you are looking to purchase a backup unit or two, we highly recommend placing an order now with your Account Rep, or through the IDScan.net store. Your N1 order will be added to IDScan.net’s larger bulk purchase, which will ensure you are part of the final production run, and receive an additional scanner.
What alternative handheld scanners do you recommend?
Currently, we are recommending the Zebra TC21 Handheld ID Scanner. It can perform all the same functions as the N1 unit, at a lower price point. We are sourcing custom hard cases for the Zebra scanner to improve durability and longevity in high-volume scanning scenarios. You can compare all of the handheld ID scanners we offer on our Compare ID Scanner page.
https://idscan.net/wp-content/uploads/2023/02/panasonic-to-discontinue-n1-toughbook-handheld-id-scanner.jpg8451600Jillian Kossmanhttps://idscan.net/wp-content/uploads/2022/05/IDScan.net-Logo-300x137.pngJillian Kossman2023-02-27 13:40:012023-04-26 10:35:20Panasonic to discontinue the TOUGHBOOK line, leave Android market
Mississippi is the hottest state in the South when it comes to the growing cannabis industry. Our team attended Cannacon Biloxi and is here to provide the latest updates on the bourgeoning medical cannabis industry in Mississippi.
1. Mississippi legalized medical marijuana in 2022.
As of December 31, 2022 there were 1700 MMJ cardholders. As of February 25, 2023 there are 2670, so the numbers are steadily growing despite media misinformation about MMJ card issuance precluding a user from firearm purchase.
2. There are 2.2M people over the age of 18 in Mississippi, and more than 12% of the state has a disability.
Between Arkansas, Louisiana, and Florida there are nearly 700,000 patients who would qualify for medical marijuana in Mississippi, even with a paltry list of 22 qualifying conditions – 100x the number of current cardholders.
3. Pervasive myths about MMJ card possession and firearm ownership have been barriers to MMJ card adoption.
New laws currently in the Senate include specific protections that would remove any ability for lawmakers to seize guns or limit gun purchases for MMJ cardholders.
SECTION 8. Discrimination prohibited. (1) A person shall not be denied custody of or visitation rights or parenting time with a minor solely for the person’s status as a cardholder.
(2) No school, landlord or employer may be penalized or denied any benefit under state law for enrolling, leasing to or employing a cardholder.
(3) A registered qualifying patient or registered designated caregiver shall not be denied the right to own, purchase or possess a firearm, firearm accessory or ammunition based solely on his or her status as a registered qualifying patient or registered designated caregiver. No state or local agency, municipal or county governing authority shall restrict, revoke, suspend or otherwise infringe upon the right of a person to own, purchase or possess a firearm, firearm accessory or ammunition or any related firearms license or certification based solely on his or her status as a registered qualifying patient or registered designated caregiver.
4. Currently 290 active business licenses for cannabis cultivators, processors, or retailers. And 1281 work permits.
161 practitioners meet the requirements to recommend cannabis (it cannot be prescribed), though most do not promote that they meet these requirements.
However, there are several major impediments to MMJ card adoption in Mississippi.
18-24 year olds have to pay double to get an MMJ card
MMJ card system requires a drug test for sign up. Despite that drug test not being logged anywhere, or impacting the eligibility of the individual for the MMJ card, this creates suspicion that deters users from signing up for the program.
5. Mississippi is open for business.
The residency requirements for dispensary or cultivator licenses were eliminated on December 31, 2022 – this means that MSOs can now enter the market with no local partners.
6. Mississippi has low limits for weekly purchase -only 3.5 grams (1 MMCEU) can be purchased per cardholder – well below limits in other states.
There has been major confusion around whether this was a weekly limit, or a rolling 7-day limit. New laws will clarify that this is a rolling 7-day purchase limit, which means dispensaries will need a way to track purchases per customer, per visit, against a weekly maximum.
7. DHS and DOR reserve the right to shut off dispensary, cultivator, and user licenses at any time if they determine that the market is saturated.
8. Hemp products are 100% legal in Mississippi – regardless of THC concentration.
They can even be purchased by minors. Mississippi is one of the few states that does not regulate Hemp production or purchase in any way and is one of the only states with no regulations around hemp. For example: there is no regulation around usage of the marijuana leaf imagery if tied to a hemp product. You can purchase hemp products, even those that meet the definitions of “mind altering”, at grocery stories and gas stations.
9. Mississippi was the only state to lose population during the first 6 months of the pandemic, despite having the lowest cost of living in the country.
The brain drain is most pronounced amongst millennials and college graduates. They typically leave to Texas, Georgia, and Virginia.
10. All program profits from cannabis taxes go to the General Fund of the Legislature, and thusly can be used for any program within Mississippi.
Conclusion
Mississippi is being seen as the model for rollout of MMJ programs, and economic development in the cannabis space in the South and in deeply conservative states which historically have been the most anti-cannabis. Grassroots community advocacy, legislator outreach, and trade organizations are being used as key initiatives for coalition building as the state’s cannabis industry leaders look to speed ahead of other states who have yet to launch even medical cannabis programs. While this is only the beginning of the Cannabis industry in Mississippi and the gulf south, we will be following along every step of the way and offering solutions to ensure state businesses can easily remain compliant. Our team of cannabis experts is always here to help, so should you have any questions about how to get set up in your dispensary, be sure to contact us.
https://idscan.net/wp-content/uploads/2023/02/9-things-we-learned-at-cannacon-biloxi-2-scaled.jpg18012560Jillian Kossmanhttps://idscan.net/wp-content/uploads/2022/05/IDScan.net-Logo-300x137.pngJillian Kossman2023-02-27 09:50:302023-06-20 11:27:1010 Things We Learned At Cannacon Biloxi
Protecting children is always a key topic at the forefront of the American media cycle, especially in our current political climate. Legislators across the country have been enacting new laws and rules aimed at protecting minors from a range of influences, which is where digital age verification comes into play.
Many of these new laws include identity verification components that require ID scanning for purchase of tobacco, alcohol, or cannabis. The newest trend is: age restrictions to access online pornographic websites. As a Louisiana-based company, we have had a birds eye view to the nation’s first law requiring digital age verification for internet browsing.
Louisiana Act No. 440, prohibits anyone under the age of 18 from accessing “adult” websites. The law went into effect on January 1, 2023. The law states that “reasonable age verification methods” must be taken to ensure a person seeking access to pornographic material is 18 or older. This means requiring the person attempting to access pornographic material to either provide a digitized identification card, or to comply with a commercial age verification system – more about what that means later…
Act 440 states that pornography is a public health crisis for young viewers due to the hyper-sexualization of teens that may lead to low self-esteem and body image issues. The act also states that entrance into these sites leads to increased problematic sexual activity at younger ages and an increased desire to engage in risky sexual behavior.
“This bill is about protecting our children, not limiting adults.”
Louisiana Rep. Laurie Schlegel, Twitter
The law now requires websites with at least 33.3% pornographic material to implement age verification measures for those located in Louisiana. Traffic to adult websites is, by some estimates, nearly 30% of total web traffic. So this regulation is broad-sweeping and likely to impact a large majority of adult internet users in the state.
What is the current process for identity verification to access adult websites in Louisiana?
Visit www.pornhub.com in Louisiana and here’s what you’ll see. A CTA inside the PornHub website kicks you out to an external page for a site called AllPassTrust.
The AllpassTrust website asks you to create an account or login and take part in digital age verification. For those living in Louisiana, this can be linked to your LA Wallet to confirm identity and age. Upon verification by whichever method you choose, you should then be able to access your desired website.
So who is AllpassTrust?
Little is known about the company other than they are registered in the country of Cyprus and have made a business based on providing access to age restricted websites. They are owned and operated by MG FREESITES LTD, also registered in Cyprus.
The privacy policy on MGfreesites website states that they may collect several types of information from and about users of their applications including name, email address, billing information, passwords, or other online contact information. Obviously, by virtue of age verification they are also gaining access to crucial PII contained in a driver’s license. MGfreesites LTD also notes that they can collect the information by you directly providing it to them, when the app is downloaded (whether consensual or not), and even from third party companies or other applications controlled by MGfreesites or their affiliates.
Who are they and what are they doing with our information? Do Louisiana citizens want their personal information exposed to a company in Cyprus, not subject to US data protection or privacy laws?
Edit: We have received confirmation that AllPassTrust is owned by MindGeek, which Financial Times recently accused of being the true owners of multiple porn sites like PornHub, Brazzers, RedTube, and YouPorn based on public financial records.
If this is true, that would mean the very people that are verifying the ages of consumers to ensure they are over 18, are the same people providing the content in the first place. So you’re giving all of your personal information to the porn sites to verify you are in fact 18, but can this even be trusted? Why would they want to ensure accuracy of age when they stand to make a profit off of users being on their website? And do we want businesses that are in the business of hosting and sponsoring adult content holding sensitive PII of its users?
How Minors Are Circumventing Digital Age Verification
As with most things, children and teens will quickly find workarounds.
Use of Borrowed or Fake IDs
One such method to circumvent these new porn restriction laws would be to borrow the ID of someone who is 18 or older and use it to enter your desired site.
Use of VPNs
Tech savvy minors can also just use a different VPN (Virtual Private Network) which allows people to have a private, encrypted connection online. The VPN would make the user appear as if they are accessing the website from a location other than Louisiana.
Accessing adult content via the dark web
While mainstream sites like PornHub and RedTube have the funds and compliance-mindset to comply with laws such as Louisiana 440, smaller, more niche sites, especially those accessed via Tor, may not. This creates a digital landscape in which minors may be motivated to seek out sites that do not require digital age verification. This may lead them to view more subversive, damaging, or even potentially illegal material. Or access sites that contain malware and viruses.
Legislators must consider that children and teens are digital natives and will find ways to work around these restrictions.
What Exactly Does “Digital Age Verification” Entail?
Louisiana Law 404 states that adult websites must perform “reasonable age verification”, but what does “reasonable age verification” actually entail? We’ve all visited an eCommerce store selling liquor or cigarettes and clicked the “yes, I’m over 18 button.” So how far do these new laws require that websites go to verify age? Do local legislators truly understand the steps required to verify age with a high degree of confidence? Or is their definition of age verification meant just as political theatre.
Digital Identity Verification Overview
The first step to any digital identity verification process is to scan and parse the ID presented – either a 2D barcode or machine readable zone (MRZ), as both of these symbologies contain the date-of-birth, which will be required to determine if a user is 18+.
If the user is presenting a driver’s license or ID card, you will also want to capture the front of that document to ensure the information in the barcode matches the text on the front of the ID.
The ID verification process can be embedded inside the onboarding workflow for the adult website, or accomplished via SMS , which would send an identity verification request to the user’s phone – a lower tech lift for smaller porn sites.
Once the document is verified, the app then prompts the user to do a facial matching process to ensure that the person scanning the ID is the same person trying to enter the website. The app creates a 3D mesh model that combines anti-spoofing and liveness checks to ensure accuracy and validity. Once these quick and easy steps are completed, the user could then be allowed onto the adult website.
But both of these steps are needed to perform true age verification and reduce easy workarounds. This brings up several PII concerns as both ID information, and facial mapping, are required to perform “reasonable age verification” in any instance.
PII and Data Retention Concerns
While ID Scanning and Face Matching are the most accurate and effective methods of preventing minors from accessing porn websites, it will likely raise concerns regarding data privacy and protection. Luckily, our Digital Identity Verification solution is easily customizable to set limits on the type of data that can be stored and for how long. It would be up to lawmakers to set restrictions as to what data can be collected and how long it can be stored, which is already in place in Louisiana, but the technology to protect personal information is already in place from a technological standpoint.
Other States Looking to add Solutions – Utah, Arkansas
Although Louisiana was the first state to pass legislation enforcing age restrictions to enter porn sites, two other states already have legislation in the works; Utah and Arkansas.
Utah
Utah’s newest proposed bills are H.B. 311, proposed by Rep. Jordan D. Teuscher and S.B. 152, proposed by Senator Michael K. McKell. These bills regulate and enact provisions to various computer platforms and social media sites. Both bills would limit internet access for minors using age verification methods.
Utah already has a law on the books – signed by the governor in 2021 – that would require cell phones and mobile devices sold in the state to come with porn pre-blocked. So the traditionally conservative state has already pushed forth measures to auto-restrict access. However, the bill only goes into effect if 5 other states pass similar measures. The feasibility of auto-blocking all adult-content at the device level is murky.
Arkansas
Arkansas is even further in the process of content restriction for minors. Senate Bill 66 was passed by the Arkansas senate on January 31, 2023. This bill would also require commercial entities displaying pornographic material to use “reasonable age verification methods” which are the same methods as those listed in Louisiana. Also similar to the Louisiana legislature, the bill claims that pornography is “creating a public health crisis and contributing to the hyper’sexualization of minors.” The language is so similar, we suspect the same lobbying groups may be involved in passage of the bill.
Sen. Tyler Dees (one of the bill’s sponsors) said the bill was needed to protect children, stating:
“When I look at my children – – I’m a father of three young kids – – and I see technology advancing, and the way I describe it as a weapon. It’s a sword, and it can be used for good or it can be used to cut off your own arm.”
Utah Senator Mike Lee also introduced the SCREEN Act (Shielding Children’s Retinas from Egregious Exposure) back on December 13th, 2022. This would direct the Federal Communications Commission (FCC) to issue a rule requiring all commercial pornographic websites to adopt age verification technology to ensure nobody under the age of 18 can access pornographic material.
Our Digital Identity Verification Solutions
New laws and restrictions always pose new challenges for companies to ensure they remain compliant, but our team is always happy to answer any questions. For more information on how DIVE API works, contact our team or schedule a demo to see for yourself just how effective our solutions are.
https://idscan.net/wp-content/uploads/2023/02/age-restriction-laws-porn-louisiana-utah-arkansas-idscan.net-header.jpg4491600Brittaney Gillieshttps://idscan.net/wp-content/uploads/2022/05/IDScan.net-Logo-300x137.pngBrittaney Gillies2023-02-13 15:33:582023-05-08 12:38:14The future of digital age verification - Louisiana, Utah, Arkansas look to require sites to check ID before entry
Happy Holiday! First, a sincere “thank you” to our customers and partners who have helped make 2022 our best year yet!
Here’s a quick year in review of the most important news stories of the year, and some of our company highlights!
2022 Identity Verification Trends
The global identity verification market is currently valued at $8.43B. It is expected to grow to $32.94B by 2023, increasing at a CAGR of 16.35% over that time. COVID-19 continues to help accelerate digital account opening and the need for contactless onboarding processes. Additionally, the increasing frequency of identity theft and identity-related fraud is driving businesses to increase their spend on identity verification services. Though large enterprises account for 68% of global spend on identity verification services, small business investment in the vertical is also growing, as scammers are targeting vulnerable businesses with smaller IT and cybersecurity budgets.
Identity Proofing
Terms such as “validation” and “verification” have been replaced with the broad term of “identity proofing.” Gartner’s 2020 report on the industry established the term, but we really saw adoption increase in 2022, as firms searched for a way to define their solutions more broadly, and differentiate between “authentication” which encompasses password and device management.
Mobile Drivers Licenses (mDLs)
More than 30 states have now either launched, or are piloting digital drivers licenses. Although there is not yet a standard for these apps, they are incredibly popular due to their convenience; more than 70% of global citizens say they would like to have their identity document on their phone.
Apple is emerging as a leader with their solutions for adding drivers licenses to a digital wallet, however this raises accessibility concerns for Android users. Thales Smart ID (used by Florida) is another major player. Every conference we attended in 2022 had multiple sessions on mDLs and the future of digital identity.
Death of the magstripe
All driver’s licenses and state IDs contain multiple symbologies (machine readable technologies) which store data and can be scanned by different devices. For many years, all IDs contained magstripes, which are the big black strip on the back of the ID. Magnetic recording was first invented in 1950, and is used on credit cards, ID cards, and other cards such as hotel room keys and food stamp cards. However, with all states now currently using the PD417 2D barcode, magstripes have become redundant. Iowa, Florida, Pennsylvania, Wisconsin and Montana IDs and driver’s licenses no longer utilize magstripes, and more states are expected to follow suite.
With EMV chips largely replacing magstripes on credit cards, magstripes are quickly falling out of favor across multiple use cases. Compared to 2D barcodes, magstripes contain less data, are more easily damaged, and are easier to duplicate, thus making them a greater security risk.
The declining popularity of the magstripe also relates to a broader trend, towards machine readable technologies that can be scanned and de-coded using a mobile phone camera.
Facial recognition pulling ahead as the #1 biometric identifier
Although iris scans, voice recognition, vein mapping, and fingerprinting have all been positioned as the future of biometrics. However, facial recognition has continue to lead the way as the most popular form of identity verification. Amongst businesses, facial recognition is most popular due to the ability to face match to the photo on the ID. Thus, it does not require any specialty scans to capture an initial biometric marker.
Challenge questions are getting technical
The “challenge question” has been a mainstay of identity verification for years. They have typically been questions such as “what is your mother’s maiden name?” or “which address have you lived at?” However, now challenge questions are shifting to verify wireless providers, phone types, and browsers.
Age limits on product purchase are a top priority for legislators
The June 2022 FDA decision to deny Juul authorization to continue selling e-cigarettes is a bellwether event for the industry, coming on the heels of a change to the federal minimum age for tobacco sales. Across all states, regulations for the sale of alcohol, tobacco, cannabis, and other age-restricted products are becoming more stringent. Supplements, weight loss products, pornography, firearms, Tide pods, and other products have all been the subject of regulatory debate. The prevalence of delivery services and online purchasing only adds to the conversation, as most eCommerce stores do not have sophisticated age verification technology in place.
We predict more states will begin to expand legal verbiage around age verification for age restricted purchasing to encompass both online and offline sales, and that supplements, kratom, CBD, and additional products will start to attract attention due to their popularity amongst young people.
Biggest Identity Verification News Stories of 2022
2022’s most talked about news stories related to identity verification, age verification, biometrics, and more.
Elon Musk’s quest to eliminate bots, promote free speech, and “authenticate all real humans” on Twitter led to an $8 account verification process with no identity verification. Hilarity ensued.
We launched VeriScan Fingerprinting, which uses livescan devices to create .EFT files, accepted by the ATF and other government entities for background checks. .EFT file submission can reduce approval times from 18 months to 6-8 weeks.
We launched our ID Scanning Laws Portal, now free and accessible to all – keep abreast of the latest legislation related to identity verification.
Cheers to an amazing 2022, and even more excitement in 2023!
https://idscan.net/wp-content/uploads/2022/11/Happy-Holidays-Email-Header.jpeg250600Jillian Kossmanhttps://idscan.net/wp-content/uploads/2022/05/IDScan.net-Logo-300x137.pngJillian Kossman2022-12-02 13:58:312023-06-20 11:47:542022 Year in Review: ID Scanning & Compliance + IDScan.net Company Updates
Nevada has always been a state at the forefront of ID Scanning Laws and Compliance, and starting January 1, 2023, a bill A360 became law. Bill A360 further regulates the sale of tobacco, tobacco products, cigarettes, e-cigarettes, or other vaping products to persons under the age of 18. To remain compliant, before the sale of the aforementioned products, establishments must demand that the customer present a valid driver’s license, resident card, tribal card, or other written documentation of age verification for any person appearing to be under the age of 40 years old.
In the past, businesses could just perform a visual inspection of the ID; with bill A360, every seller of tobacco products must utilize “enhanced control methods such as using scanning technology or another software based program that can verify the customer’s age.” This means some sort of ID scanner that can read and parse the 2D barcode, and perform front and back matching.
This means that every gas station, liquor store, casino, grocery store, or any establishment that sells tobacco products (including vapes) needs to employ a scanner that is hooked up to software capable of reading IDs and detecting fake IDs.
Penalties
The penalties for an employee or agent of a licensee violating the law are as follows:
For the first and second violation within a 24-month period at the same premises, the licensee must be issued a warning.
For the third violation within a 24-month period at the same premises, the licensee is liable for a civil penalty of $500.
For the fourth violation within a 24-month period at the same premises, the licensee is liable for a civil penalty of $1,250.
For the fifth and any subsequent violation within a 24-month period at the same premises, the licensee is liable for a civil penalty of $2,500.
Who must comply
The regulations don’t just apply to in-person purchases but online ones as well. Any establishment selling or distributing tobacco, tobacco products, cigarettes, e-cigarettes, or other vaping products via computer, telephone, or other electronic system must perform an age verification through an independent, third-party age verification service that has the capability to compare the customer’s information with any records that may be available to the public in order to verify age. The method of shipping must also require a signature from the person over 18 years of age before the items may be released to the customer.
Recommended Solutions
IDScan.net offers a variety of options that can help your business remain compliant with this new law, and we have listed some of the best options below.
The M260 is perfect for those establishments with limited countertop space. This compact scanner allows for the user to either insert or swipe the ID, depending on the user’s needs. Powered via cord, you never have to worry about a dead scanner in the middle of rush hour. This scanner is perfect for those establishments that don’t get a ton of international clients since it only scans 2D Barcodes and MSRs, and are looking for a lower cost option.
The M500 is perfect for any establishment that needs authentication, other third-party checks, or offers age-restricted vending. The scanner has a motorized side load design that allows you to quickly and precisely check IDs. This unit is also powered via cord, so again, you never have to worry about this unit running out of battery life in the middle of peak hours. This ID scanner is the best option for those wanting the most accurate verification possible of scanned IDs.
This ID scanner includes full-color ID scans with the built in 600 dpi camera and magstripe reader allowing for proper authentication or third party checks. The only con for this ID scanner is the size. The E-Seek M500 is a relatively large unit that will need a table to sit on during use, so it might not be the best choice for those establishments looking for a portable ID scanner.
The newest product in our fleet, the IDWare Falcon is perfect for those establishments that offer delivery options because it has an agreement section built in, which is perfect for the required signature upon delivery being implemented with this new bill. This tablet sized ID scanner is not just a scanner, but has the visitor management aspect built right in for those establishments that desire said feature. The Falcon can either be portable or mounted on a stand, and if it is on the stand, patrons can just hold their ID under the built-in scanner for quick and easy verification. This scanner can be used on or offline which makes it the perfect option for those in the field making deliveries.
The IDWare Falcon has a whopping 8 LCD inch screen, and the built-in scanner is able to read 1D and 2D barcodes, PDF417, NFC and MRZs. This makes it especially good for those businesses that get a lot of international visitors that may not have a United States driver’s license.
Above are three solid options for establishments, looking to stay compliant at the start of the New Year, but if none of those suit your needs, we have plenty of other ID scanners for you to choose from. Be sure to talk with one of our industry experts so that they can help guide you to make the perfect decision. We also have a Nevada AB360 ID Scanner Bundle which includes everything you need in one purchase.
https://idscan.net/wp-content/uploads/2022/07/tobacco-and-vape.jpg482724Brittaney Gillieshttps://idscan.net/wp-content/uploads/2022/05/IDScan.net-Logo-300x137.pngBrittaney Gillies2022-07-12 11:08:472023-06-01 14:13:24Nevada Now Requires ID Scanning for Sale of Tobacco Products
For the first time in 9 years, New York State is releasing a new and improved ID card. This redesign isn’t for aesthetic purposes, but instead it offers new features to help prevent counterfeit IDs. A statement from the DMV Commissioner, Mark J.F. Schroeder said, “At the DMV, we pride ourselves on providing secure identity documents to millions of New Yorkers and we introduce enhanced features every few years to stay at the cutting edge of emerging trends. We are confident in the security features on our current ID documents, however, the new security features on our redesigned documents will keep us one step ahead of potential counterfeiters.”
Some of the new security features include:
Embossed Text and Images that can be felt.
The previously embedded chip is now exposed.
The clear windows within the document and the state seal have been redesigned by a process called multiple laser imaging, which allows two different images to appear when the ID is held at different angles.
These new features went into effect on March 10, 2022, so anyone getting a new driver’s license or non-driver ID will receive the new and improved identification card.
https://idscan.net/wp-content/uploads/2022/07/new-ny-id.jpg7201280Brittaney Gillieshttps://idscan.net/wp-content/uploads/2022/05/IDScan.net-Logo-300x137.pngBrittaney Gillies2022-07-05 16:09:102023-06-28 11:39:37New York State Releases Redesigned ID for the First Time Since 2013
On March 4th, 2021 during a regular New York congress assembly session, a new paragraph was suggested in relation to additional verification measures before the sale of alcohol, tobacco, or electronic cigarette products. This bill would allow retailers to require some form of biometric scanning such as fingerprinting, iris scanning, facial scanning, etc. before permitting the transaction.
Why do they want to start Biometric Scanning?
Not only would this be “the new frontier of age verification”, but it would also “advance the interests of convenience,” said state Sen. James Skoufis, who is sponsoring the bill. The state Senator is not only hoping to cut down on the number of fake IDs being sold, but by using facial recognition and fingerprint scanning, it could lead to a future of convenience. Skoufis is hopeful that one day, customers won’t even have to take their ID out at previously visited establishments.
When does it go into effect?:
While it remains unclear as to when the new law will go into effect, we do know that the New York State lawmakers are scheduled to adjourn for the year of 2022 on June 2 to further discuss items on the agenda. However, although it remains undetermined when the new ruling will go into effect, it does not mean businesses should wait. With global supply chain shortages, the invasion of Ukraine (the supplier of around half the world’s supply of neon needles needed to create chips) and another lockdown in the province of China responsible for the product of most of the world’s microchips, the time to prepare is now.
Compliance:
Although this new bill would allow businesses to require biometric data, it does not mean they are required to do so. Simple age verification measures such as ID Scanning are still acceptable for those that wish, but anyone under the age of 21 should still be denied purchase. However, why stay stuck in the “Middle Ages”, as one senator stated. This new ruling could not only put a strain on the fake ID realm, but could prevent the sale of harmful substances to minors. By analyzing unique facial shapes and features, sophisticated algorithms are able to create a specific signature for an individual’s face, much like a unique fingerprint. To learn more about how our facial recognition software works, please read our Facial Recognition Anti-Spoofing blog.
Benefit:
ID Scanning and Biometric Scanning not only eliminates human error, but they also help to speed up processes in an already time consuming process. This technology allows you to quickly identify individuals who are underage, catch fake IDs, create specific profiles, and much more. All of the major companies of the future are already using biometric scanning as a means of visitor management, so why not join them in the future.
IDScan.net’s age verification and biometric solutions can help retailers verify age for every customer and catch fake IDs. We offer ID scanning, facial scanning, and fingerprint scanning solutions currently, while striving for innovation of new verification solutions as well. Contact a member of our team to learn more: 888.430.8936.
https://idscan.net/wp-content/uploads/2022/05/pexels-chris-f-1283219-scaled-e1652719135157.jpg8001200Brittaney Gillieshttps://idscan.net/wp-content/uploads/2022/05/IDScan.net-Logo-300x137.pngBrittaney Gillies2022-05-18 10:00:002023-04-27 12:25:46New York State Considers Biometric Scanning For Alcohol and Tobacco Purchases
