Identity check contractor ID.me fires dozens on fraud team as Congress probes

LogicMark

26/04/2022 23:06

By Paresh Dave
    OAKLAND, Calif., April 26 (Reuters) - A major U.S.
government contractor of identity verification technology that
is under investigation by Congress has fired 39 employees over
the past week for inappropriate communications, the company told
Reuters.
    The company, ID.me, gutted about half of its fraud review
team but said the firings were unrelated to a probe U.S.
lawmakers opened last week over "serious concerns" about the
efficacy, privacy and security of its technology, including
facial recognition.  urn:newsml:reuters.com:*:nL2N2WC1UG
    About two dozen U.S. states and 10 federal agencies,
including the Internal Revenue Service (IRS), contract with
ID.me to catch scammers attempting to siphon off benefits such
as unemployment insurance and tax refunds using fake or stolen
identities.  urn:newsml:reuters.com:*:nL1N2OS2EE 
    Processing waits have been a major challenge for the Tysons,
Virginia, startup during the coronavirus pandemic, and U.S.
lawmakers said this month that "delays have blocked access to
essential government services and benefits."
    ID.me said that some customer support staff were separated
from the company "for inappropriate internal communications"
that showed disrespect for colleagues and that it would add
training and procedures.
    Five fired employees told Reuters that the fraud team had
shared jokes, sought advice and discussed frustrations on an
internal messaging group chat. For example, workers posted a rat
emoji to alert colleagues when managers approached patrolling
for personal cellphone use or other security violations, two
people said. 
    The job cuts include about half of a 70-person team that
reviews users locked out due to suspected fraud or other issues,
the workers said. The sources, speaking anonymously, said their
exit from ID.me had left their remaining colleagues with sharply
higher caseloads that they believed would slow response times.
    ID.me told Reuters that the cuts would not significantly
affect operations because it was moving other workers into the
fraud division and the workload had decreased after the
mid-April U.S. tax filing deadline. 
    The company, which employs about 1,400 people, was valued at
$1.5 billion in a fundraising last year by Alphabet Inc's
 GOOGL.O  CapitalG and other funds.
    While some clients praise its work, ID.me's use of facial
recognition software to verify people, along with other issues,
have led to a public campaign by rights activists urging the
government to abandon it.
    ID.me has said it has stopped fraud in an unprecedented way.
    Fired employees said they were concerned that ID.me did not
first issue warnings. It has offered fired workers a month of
pay and three months of healthcare if they agree not to bring
legal action or speak about the deal, according to a severance
agreement seen by Reuters.
    ID.me said that it had no tolerance for disrespectful
discussion but declined to comment on the package.

 (Reporting by Paresh Dave; Editing by Howard Goller)
 ((paresh.dave@thomsonreuters.com; 415-565-1302;))