IRS reportedly exploring ID.me alternatives amid privacy concerns

According to a Bloomberg report, the Treasury Department and the Internal Revenue Service (IRS) are reportedly exploring alternatives to the controversial facial recognition software ID.me. As noted by Bloomberg, the agencies did not give a reason for the possible change, and also did not mention any privacy concerns about the service.

"The IRS is constantly looking for ways to make the filing process more secure," Treasury Department spokeswoman Alexandra Lamanna said in a statement to Bloomberg. “We believe in the importance of protecting taxpayer privacy, while also ensuring that criminals are not able to gain access to taxpayer accounts.” Lamanna also pointed out that Bloomberg users are not obligated to file their taxes online and are unlikely to install in-house software for the department due to "lack of funds for IRS modernization." The IRS and ID.me did not immediately respond to The Verge's request for comment.

Last year, the IRS announced its plan to begin requiring people filing taxes online to register with third-party facial recognition company ID.me. Through the service, users must submit a video selfie using a webcam or mobile device to verify their identity. The IRS is scheduled to launch the program this summer.

Although ID.me previously claimed that it only uses one-to-one face matching, which involves matching a user's face with images of the same face, ID.me CEO Blake Hall said . Admitted that it uses a technique that does face-matching against a large database. This only heightens privacy concerns – politicians, the American Civil Liberties Union, and digital rights advocates have already talked about the IRS's use of the software.

The US government currently employs ID.me to verify the identities of individuals for Social Security, state benefits, and veterans affairs. In 2021, many people who used ID.me to verify their state benefits were reported to have been denied their benefits or had applications blocked due to potential problems with the software.