Coin Center urges shift to privacy-first KYC after 153 million records exposed

Coin Center has called for a major overhaul of Identity and Access Management (IAM) standards, specifically advocating for privacy-preserving technology instead of traditional document storage. Research director Laz Pieper highlighted that existing Know-Your-Customer (KYC) systems routinely collect full copies of personal documents, creating central repositories that are attractive targets for cybercriminals. This warning comes in the wake of an FBI investigation into claims regarding a dark-web service selling more than 153 million US and Canadian driver's license records. While the specific source has not been publicly confirmed, IDScan.net, a provider linked to examined samples, is currently investigating. Pieper argues that businesses often gather names, addresses, photographs, and identity numbers, retaining this information indefinitely. He notes that such breaches expose data that individuals cannot easily replace. As an alternative, he proposes systems where users can prove facts like age eligibility or sanctions status without submitting the underlying document or a complete personal profile.