• Coinbase is facing a lawsuit for allegedly violating privacy laws in Illinois by collecting and storing users’ fingerprints and facial scans.
• The proposed class action alleges that the exchange violated provisions of the Biometric Information Privacy Act (BIPA).
• The suit claims that “thousands” of highly detailed biometric templates were illegally collected and stored by the exchange.
Coinbase Facing Lawsuit Over Alleged Privacy Violations
Coinbase is facing a proposed class action lawsuit for alleged violations of privacy laws in Illinois, through its collection and storage of users’ fingerprints and facial scans. The suit was filed in California’s District Court on May 1st, 2021 by Coinbase user Michael Massel.
Biometric Information Privacy Act (BIPA)
The lawsuit alleges that Coinbase has violated certain provisions of Illinois’ Biometric Information Privacy Act (BIPA), which requires companies to obtain permission from users when collecting their biometrics, as well as provide information about how long it will be stored, how it will be used and how it will be permanently destroyed. Additionally, there must be a written policy providing guidelines for permanently destroying biometric information made available to the public.
What Data Has Been Collected?
According to the filing, Coinbase collects photographs which are then used to create a biometric template of the user’s face in order to conduct KYC checks. It is also claimed that thousands of highly detailed geometric maps of faces and fingerprints have been illegally collected and stored by the exchange. Biometric authentication such as a fingerprint or face scan is also used on Coinbase’s mobile app to verify the user when logging into their account.
Risks Associated With Data Collection
The filing argues that Coinbase’s data collection practices expose customers to serious privacy risks if their database containing sensitive biometric data is hacked or breached and exposed. In this instance, users would have no means by which to prevent identity theft due to their personal data being compromised without their consent or knowledge.
Demands Of Proposed Class Action Suit
Michael Massel’s proposed class action suit demands a jury trial against Coinbase, arguing that its collection, obtainment, storage and use of such data is “unlawful” under BIPA guidelines.