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Third Party Risk
API security Automotive Cybersecurity Consumer Data Exposure Credit Monitoring Data Breach identity theft protection phishing threats Supply Chain Attack Third Party Risk

Credit Monitoring Provider Discloses Breach Impacting 5.6 Million Users


A data breach usually does not lend itself to straightforward comparisons, as each occurrence is characterized by distinctive circumstances and carries different consequences for those involved. It is common for headlines to emphasize the scale of an attack, the prominence of the organization that was affected, or the attack method used by the attacker, but in reality, the real significance of a breach lies in the sensitivity of the compromised data, along with the actions that are taken to correct it. 

It was apparent from a disclosure issued by 700Credit, a U.S.-based company that provides consumer information, preliminary credit checks, identity verifications, fraud detections, and compliance solutions for auto, recreational, powersport, and marine dealerships. As a result of a third-party supply-chain attack that occurred late in October 2025, the company confirmed that personally identifiable information had been accessed by unauthorized people through the use of a third-party supply chain. 

It has been revealed that the exposed data includes names, residential addresses, dates of birth, and Social Security numbers, all collected between May and October of the year. Based on the information provided by the agency, approximately 5.6 million people are expected to have been affected by the incident, making it one of the most substantial credit-related data breaches of the year, emphasizing the risks associated with retaining data for a long period of time and relying on external service providers. 

A 700Credit representative confirmed that the compromised information was the result of a breach of a database provided by auto dealerships between May and October 2025 as a result of regular credit verification and identity verification processes. 

Despite acknowledging that the precise technical details of how the intrusion was conducted have not yet been fully determined, the company has attributed the incident to an unidentified threat actor. Although there is no official word on who is affected, it has been revealed that those individuals whose personal data was processed by 700Credit for dealership clients have been brought into focus as data-handling risks arise across the entire automotive retail ecosystem. 

There are broader concerns raised about supply-chain exposures and the downstream impact of such events on consumer confidence, particularly when it comes to sensitive financial and identity-related information that has been disclosed. 

A Michigan Attorney General said that recipients of breach notification letters should not dismiss the letters in response to the disclosure, stressing that taking swift protective measures, such as freezing the credit history and enrolling in credit monitoring services, was critical to reducing the risk of identity theft and fraud that can result from the exposure to the breach. 

However, despite moving quickly to disable the exposed application programming interface (API), 700Credit acknowledged that, in spite of taking steps to prevent threats from accessing consumer records, threat actors were able to extract a significant percentage of them. The company estimates that approximately 20 percent of the affected datasets were accessed, which comprised extremely sensitive data such as names, addresses, birthdates, and Social Security numbers. 

In spite of the fact that 700Credit confirmed that its internal systems, payment platforms, and login credentials were unhacked, cybersecurity experts noted that the stolen data, in both quantity and nature, could still be utilized by phishing and social engineering companies to conduct highly convincing scams. 

Because of this, consumers and dealership clients have been advised to be vigilant when receiving unsolicited communications, especially those that appear to be from 700Credit or its partners, as well as any messages purported to have originated with the company. In addition to the details reported by CBTNews, it is clear that the breach is the result of a compromised integrated partner not alerting 700Credit in a timely manner after they became aware of the breach. 

Researchers have determined that attackers exploited vulnerabilities in the API validation process, which allowed malicious requests to be masked as legitimate partner traffic by exploiting vulnerabilities in the API validation process. An independent forensic analysis confirmed that the intrusion did not extend into 700Credit's internal network or core operational infrastructure, but rather was confined to the application layer through third-party API integration. 

Furthermore, experts concluded that attackers had been able to carry out the majority of the damage without compromising internal systems, underscoring the persistency of security gaps in API-driven architectures, particularly in modern times. 

According to 700Credit, in response, its API inspection controls have been strengthened, the validation framework is now more secure, the insurance coverage for cybersecurity has been expanded, and external cybersecurity firms have been engaged to assess residual risks and mitigate them, all while maintaining uninterrupted service to dealership clients throughout the investigation. 

Additionally to the technical remediation, 700Credit began a coordinated regulatory notification and response involving multiple authorities as well. For compliance with federal Safeguards Rule requirements, the company reported the incident to the Federal Bureau of Investigation and the Federal Trade Commission and also notified the FTC a consolidated breach notification on behalf of the affected dealer clients. 

Upon receiving written notifications of a breach of the Federal Safeguards Rule beginning December 22, 2025, impacted individuals were offered a 12-month free credit monitoring program from TransUnion and identity restoration services as part of the offer. Moreover, as part of the ongoing efforts to resolve consumer and dealer concerns, the company has also been in touch with the National Automobile Dealers Association and has notified state attorneys general throughout the country. 

A dedicated hotline was also established to address the concerns of consumers and dealers. In addition, the Michigan Attorney General issued a public consumer alert after an estimated 160,000 Michigan residents were identified as being affected by the fraud. They advised recipients to not ignore notification letters and to take immediate precautionary measures, such as putting a credit freeze on their credit report, signing up to a monitoring service, updating their passwords and enabling multifactor authentication, as soon as possible. 

Earlier this month, Michigan Attorney General Dana Nessel sent a consumer advisory explaining why people should not shrug off correspondence from 700Credit, emphasizing that taking prompt action can significantly reduce the risk of downstream fraud occurring as a result of this situation. 

According to her, victims should consider placing a credit freeze on their credit cards or registering for credit monitoring services, as these can serve as effective first-line defenses against identity theft, so that they may be able to protect themselves effectively. 

Moreover, Nessel emphasized the importance of being alert to potential phishing attempts, strengthening or changing passwords, removing unnecessary data stored on devices and enabling multi-factor authentication across all online services and devices. To be able to identify any suspicious activity as soon as possible, she also advised regularly reviewing credit reports from TransUnion as well as Equifax and Experian. 

As security expert Hill pointed out, the investigation revealed that the automotive retail sector was not adequately prepared in terms of cybersecurity, as highlighted by several industry perspectives. It has been discovered that several large dealerships have well-established security frameworks in place, including continuous monitoring and internal "red team" exercises which test defenses. However, smaller and mid-sized businesses lack the resources necessary to implement the same level of security measures. 

The author warned that these gaps can result in systemic risks within shared data networks, and advised dealerships to increase security awareness, better understand emerging threats, and evaluate the cybersecurity posture of third party partners that may have access to consumer information in a more detailed manner. 

As a whole, the 700Credit breach indicates how cyber risk is distributed across multiple interconnected industries, where vulnerabilities in one partner can ripple outward so that millions of individuals and hundreds of businesses are affected. 

As investigations and notifications continue, it will probably prompt an increased focus on third-party risk management, particularly in sectors which are heavily dependent on the sharing of data and the integration of real-time data. It is important for consumers to maintain vigilance, even after taking initial measures to prevent identity-based fraud, as identity-based fraud often emerges well after the original attack has been made. 

For dealerships and service providers, the breach serves as an alarming example of the need for cybersecurity governance to extend beyond internal systems to include vendors, integrations, and data lifecycle controls, in addition to internal systems. 

In addition to proactive investments in security assessments, employee training, and transparency, analysts note that proactive investments can help minimize both technical exposure and reputational damage in the automotive industry.

It is ultimately up to whether the lessons learned from the incident translate into stronger safeguards and more resilient data practices in the credit monitoring industry as well as automotive retail to determine the long-term impact of the incident.
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US Department Of Justice
ATM hacking scheme ATM jackpotting Cyber Security Ploutus malware Tren de Aragua US Department Of Justice

US DoJ Charges 54 Linked to ATM Jackpotting Scheme Using Ploutus Malware, Tied to Tren de Aragua

 

The U.S. Department of Justice (DoJ) has revealed the indictment of 54 people for their alleged roles in a sophisticated, multi-million-dollar ATM jackpotting operation that targeted machines across the United States.

According to authorities, the operation involved the use of Ploutus malware to compromise automated teller machines and force them to dispense cash illegally. Investigators say the accused individuals are connected to Tren de Aragua (TdA), a Venezuelan criminal group that the U.S. State Department has classified as a foreign terrorist organization.

The DoJ noted that in July 2025, the U.S. government imposed sanctions on TdA’s leader, Hector Rusthenford Guerrero Flores, also known as “Niño Guerrero,” along with five senior members. They were sanctioned for alleged involvement in crimes including “illicit drug trade, human smuggling and trafficking, extortion, sexual exploitation of women and children, and money laundering, among other criminal activities.”

An indictment returned on December 9, 2025, charged 22 individuals with offenses such as bank fraud, burglary, and money laundering. Prosecutors allege that TdA used ATM jackpotting attacks to steal millions of dollars in the U.S. and distribute the proceeds among its network.

In a separate but related case, another 32 defendants were charged under an indictment filed on October 21, 2025. These charges include “one count of conspiracy to commit bank fraud, one count of conspiracy to commit bank burglary and computer fraud, 18 counts of bank fraud, 18 counts of bank burglary, and 18 counts of damage to computers.”

If found guilty, the defendants could face sentences ranging from 20 years to as much as 335 years in prison.

“These defendants employed methodical surveillance and burglary techniques to install malware into ATM machines, and then steal and launder money from the machines, in part to fund terrorism and the other far-reaching criminal activities of TDA, a designated Foreign Terrorist Organization,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division.

Officials explained that the scheme relied on recruiting individuals to physically access ATMs nationwide. These recruits reportedly carried out reconnaissance to study security measures, tested whether alarms were triggered, and then accessed the machines’ internal components.

Once access was obtained, the attackers allegedly installed Ploutus either by swapping the ATM’s hard drive with a preloaded one or by using removable media such as a USB drive. The malware can send unauthorized commands to the ATM’s Cash Dispensing Module, causing it to release money on demand.

“The Ploutus malware was also designed to delete evidence of malware in an effort to conceal, create a false impression, mislead, or otherwise deceive employees of the banks and credit unions from learning about the deployment of the malware on the ATM,” the DoJ said. “Members of the conspiracy would then split the proceeds in predetermined portions.”

Ploutus first surfaced in Mexico in 2013. Security firms later documented its evolution, including its exploitation of vulnerabilities in Windows XP-based ATMs and its ability to control Diebold machines running multiple Windows versions.

“Once deployed to an ATM, Ploutus-D makes it possible for a money mule to obtain thousands of dollars in minutes,” researchers noted. “A money mule must have a master key to open the top portion of the ATM (or be able to pick it), a physical keyboard to connect to the machine, and an activation code (provided by the boss in charge of the operation) in order to dispense money from the ATM.”

The DoJ estimates that since 2021, at least 1,529 jackpotting incidents have occurred in the U.S., resulting in losses of approximately $40.73 million as of August 2025.

“Many millions of dollars were drained from ATM machines across the United States as a result of this conspiracy, and that money is alleged to have gone to Tren de Aragua leaders to fund their terrorist activities and purposes,” said U.S. Attorney Lesley Woods
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Ransomware
Cyber Crime Data Extortion Encryption Files RansomHouse Ransomware

RansomHouse Develops More Complex Encryption for Recent Attacks

 


The ransomware group known as RansomHouse has recently enhanced the encryption mechanism used in its attacks, moving away from a basic, single-step process to a more advanced, multi-layered approach. This change reflects a deliberate effort to strengthen the effectiveness of its ransomware operations.

Earlier versions of the encryptor relied on a linear method, where data was transformed in one continuous pass. The updated version introduces multiple stages of processing, which results in stronger encryption, improved execution speed, and greater stability across modern systems. These improvements increase the pressure on victims by making encrypted data harder to recover and negotiations more favorable for attackers after systems are locked.

RansomHouse first appeared in late 2021 as a cybercrime group focused on data extortion, where stolen information was used as leverage rather than encryption alone. Over time, the group expanded its tactics and began deploying ransomware encryptors during attacks. It also developed an automated tool, known as MrAgent, designed to simultaneously encrypt multiple VMware ESXi hypervisors, a technique that allows attackers to disrupt large virtualized environments efficiently.

In more recent activity, security analysts observed RansomHouse using more than one ransomware strain during attacks on a major Japanese e-commerce company. This suggests a flexible operational strategy rather than reliance on a single malware family.

Further insight into the group’s evolving capabilities comes from a new analysis by cybersecurity researchers, who examined RansomHouse’s latest encryptor, internally referred to as “Mario.” This version introduces a two-stage data transformation process that relies on two different encryption keys: one substantially longer than the other. Using multiple keys increases the randomness of the encrypted output, making partial file recovery or reconstruction far more challenging.

The updated encryptor also changes how files are handled during the encryption process. Instead of treating all files the same way, it adjusts its behavior based on file size. Large files are processed in dynamically sized chunks, with encryption applied intermittently rather than continuously. This irregular pattern makes the malware harder to analyze because it avoids predictable processing behavior.

Researchers also noted improvements in how the encryptor manages memory. The newer version separates tasks across multiple buffers, with each buffer assigned a specific role during encryption. This design increases operational complexity and reduces inefficiencies found in earlier variants.

Another visible change is the amount of internal information displayed during file processing. Unlike older versions, which only indicated when encryption was complete, the new encryptor provides more detailed status output as it operates.

Despite these changes, the ransomware continues to focus on virtual machine-related files, renaming encrypted data with a new extension and placing ransom instructions across affected directories.

Security researchers caution that these upgrades indicate a troubling direction in ransomware development. While RansomHouse does not carry out attacks at the scale of larger ransomware groups, its continued investment in advanced encryption techniques points to a strategy centered on precision, resilience, and evasion rather than volume.

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Malwares
cyber espionage Cyber Espionage Campaign Cyberattacks cybersecurity risks Iran Iranian malware Malware Attack Malwares

Iranian Infy Prince of Persia Cyber Espionage Campaign Resurfaces

 

Security researchers have identified renewed cyber activity linked to an Iranian threat actor known as Infy, also referred to as Prince of Persia, marking the group’s re-emergence nearly five years after its last widely reported operations in Europe and the Middle East. According to SafeBreach, the scale and persistence of the group’s recent campaigns suggest it remains an active and capable advanced persistent threat. 

Infy is considered one of the longest-operating APT groups, with its origins traced back to at least 2004. Despite this longevity, it has largely avoided the spotlight compared with other Iranian-linked groups such as Charming Kitten or MuddyWater. Earlier research attributed Infy’s attacks to a relatively focused toolkit built around two primary malware families: Foudre, a downloader and reconnaissance tool, and Tonnerre, a secondary implant used for deeper system compromise and data exfiltration. These tools are believed to be distributed primarily through phishing campaigns. 

Recent analysis from SafeBreach reveals a previously undocumented campaign targeting organizations and individuals across multiple regions, including Iran, Iraq, Turkey, India, Canada, and parts of Europe. The operation relies on updated versions of both Foudre and Tonnerre, with the most recent Tonnerre variant observed in September 2025. Researchers noted changes in initial infection methods, with attackers shifting away from traditional malicious macros toward embedding executables directly within Microsoft Excel documents to initiate malware deployment. 

One of the most distinctive aspects of Infy’s current operations is its resilient command-and-control infrastructure. The malware employs a domain generation algorithm to rotate C2 domains regularly, reducing the likelihood of takedowns. Each domain is authenticated using an RSA-based verification process, ensuring that compromised systems only communicate with attacker-approved servers. SafeBreach researchers observed that the malware retrieves encrypted signature files daily to validate the legitimacy of its C2 endpoints.

Further inspection of the group’s infrastructure uncovered structured directories used for domain verification, logging communications, and storing exfiltrated data. Evidence also suggests the presence of mechanisms designed to support malware updates, indicating ongoing development and maintenance of the toolset. 

The latest version of Tonnerre introduces another notable feature by integrating Telegram as part of its control framework. The malware is capable of interacting with a specific Telegram group through its C2 servers, allowing operators to issue commands and collect stolen data. Access to this functionality appears to be selectively enabled for certain victims, reinforcing the targeted nature of the campaign. 

SafeBreach researchers also identified multiple legacy malware variants associated with Infy’s earlier operations between 2017 and 2020, highlighting a pattern of continuous experimentation and adaptation. Contrary to assumptions that the group had gone dormant after 2022, the new findings indicate sustained activity and operational maturity over the past several years. 

The disclosure coincides with broader research into Iranian cyber operations, including analysis suggesting that some threat groups operate with structured workflows resembling formal government departments. Together, these findings reinforce concerns that Infy remains a persistent espionage threat with evolving technical capabilities and a long-term strategic focus.
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social engineering attacks
AI-Driven Phishing Business Email Compromise Corporate Intelligence Leak Cybersecurity Threats Data Breach Data Privacy Risks Lead Generation Data MongoDB Exposure social engineering attacks

Lead Generation Sector Faces Scrutiny Following 16TB Data Exposure


 

In the wake of a massive unsecured MongoDB database, researchers have rekindled their interest in the risks associated with corporate intelligence and lead generation ecosystems. Researchers discovered that the MongoDB instance had been exposed, containing about 16 terabytes of data and approximately 4.3 billion professional records, according to the researchers. 

It is noteworthy that the dataset, which largely mirrored LinkedIn-style information, such as name, title, employer and contact information, is one of the largest known exposures of its type and has serious implications for large-scale social engineering and phishing campaigns utilizing artificial intelligence. Security researcher Bob Diachenko discovered the database by working with the nexos.ai company on November 23, 2025, and it was secure two days later after a responsible disclosure was conducted.

In addition, as a result of the lack of access logs and forensic indicators, it remains impossible to determine whether malicious actors were able to access or exfiltrate the data prior to remediation, leaving affected individuals and organizations with lingering questions about the possibility of misuse. 

In terms of scale and organization, security analysts describe the exposed repository as one of the largest lead-generation datasets on the open internet in recent history, not only because of its enormous size but also because of its organization. According to the structure of the database, scraping and enrichment operations were carried out deliberately and systematically, with evidence suggesting that a large portion of the information was gathered from professional networking sites, such as LinkedIn, in order to enrich the database. 

The records, which are grouped into nine distinct data collections, encompasse a wide range of personal and professional attributes, including full names, e-mail addresses, phone numbers, URLs for LinkedIn profiles, employment histories, educational backgrounds, geographical details, and links to other social media accounts, among other details. 

Researchers point out that the dataset's granularity significantly increases its potential for abuse, especially given the presence of a dedicated collection labeled "intent" containing more than two billion documents in addition to other collections. 

A number of analysts point out that the level of detail the leak has reveals makes it a highly valuable social-engineering asset, enabling cybercriminals to create highly tailored spear-phishing attacks and business email compromise campaigns, able to convince clients that they are trustworthy contacts in order to attack organizations and professionals around the world. 

It has been characterized by cybersecurity experts as the largest lead generation data collection ever discovered publicly accessible by cybersecurity experts, distinguished not only by its sheer size but also by its unusually methodical structure. 

Using the way the information was segmented and enriched, there is evidence to suggest that a large-scale scraping operation may have been used to gather the information, with indicators suggesting that professional networking platforms such as LinkedIn may have served as primary sources in this case. 

In total, the data for the report appears to be distributed over nine separate collections and consists of billions of individual records detailing full names, email addresses, phone numbers, LinkedIn profile links, employment history, educational background, location information and social media accounts which are associated with those records. 

In light of such comprehensive profiling, analysts have warned that the risk of exploitation is significant, particularly since one collection—the "intent" collection which contains over two billion entries—seems to be aimed at capturing behavioral or interest-based signals as well. The depth of insight they offer is, they point out, an exceptionally powerful foundation for spear-phishing and business email compromise schemes that can be launched against organizations and professionals throughout the world. 

In summary, the exposed database was divided into nine distinct collections, bearing labels such as "intent," "profiles," "people," "sitemaps," and "companies," a layout that researchers say reflects a sophisticated data aggregation pipeline with the hallmarks of machine learning. It was based on this organizational structure that investigators concluded that the information was probably obtained through large-scale scraping from professional platforms, like LinkedIn, and Apollo's artificial intelligence-driven sales intelligence service, in order to gather the information. 

The records contained in at least three collections had extensive amounts of personally identifiable data, totaling nearly two billion records, each of which contained extensive amounts of information. There was a wide range of information that was exposed, including names, email addresses, phone numbers, LinkedIn profiles and handle links, job titles, employers, detailed employment histories, educational backgrounds, degrees and certifications, location information, languages, skills, functional roles, links to other social media accounts, images, URLs, email confidence scores, and Apollo-specific identifiers associated with each individual. 

In addition to profile photographs, some collections were made up of personal information that further compounded the sensitivity of the disclosure. It is believed that the scope and depth of the leaked information significantly increased the risk of identity theft as well as financial fraud. 

The Cybernews report noted that it was unable to identify a specific organization that had generated the database, but multiple indicators indicate that it was a commercial lead generation operation. Despite the fact that no formal agreement has been established for who owns the exposed dataset, researchers cautioned against drawing definitive conclusions based on it. 

Investigators discovered that there were several sitemap references that pointed to a lead-generation operation, including those linking “/people” and “/company” pathways to a commercial site that advertised access to more than 700 million professional profiles, a figure that closely matches the number of unique profiles reported by the database. 

A noteworthy aspect of this incident was that after the database was first reported, it was taken offline within one day of the incident. Nonetheless, a number of researchers stressed that attribution remains uncertain, suggesting that the company itself may have been a downstream victim, rather than the original source of the data. 

It is widely acknowledged that security experts warn that the real risk is not simply the extent of the exposure, but the precision it permits. With a dataset of this magnitude and structure, it is possible to use it to launch a highly targeted phishing campaign, a business email compromise scheme, a CEO fraud scheme, and a detailed corporate reconnaissance campaign, particularly against executives and employees of Fortune 500 companies and corporations. 

A massive database of records makes it possible for attackers to automate personalization at a massive scale, dramatically reducing preparation time and maximizing success rates. Cybernews pointed out that modern large language models can produce persuasive, individual messages based on profile information, enabling tens of millions of targeted emails to be sent at minimal cost, where the compromise of a single high-value target is enough for the entire operation to be justified. 

A further concern noted by researchers was that datasets of this nature often serve to enrich other breaches in the process of enrichment, allowing threat actors to assemble extensive, searchable profiles that may ultimately include passwords, device identifiers, and cross-platform account links, making it significantly easier for hackers to conduct social engineering and credential stuffing attacks. 

Despite the fact that cybercriminals can quickly take advantage of large, unprotected databases of this type, security experts warn that these types of databases are highly lucrative assets. The wide variety of information allows attackers to conduct targeted phishing campaigns with precise targeting, including executive fraud schemes that impersonate senior leaders to encourage employees to authorize fraudulent financial transfers. 

As a result of the same data, security teams can also use it to conduct detailed corporate reconnaissance, which is a technique commonly used by cybersecurity teams to assess organization resilience to social engineering threats. However, it can also be effectively utilized by malicious actors in order to identify vulnerable areas for exploiting. 

As a result of the high value placed on enterprise-related data on underground markets, multinational organizations remain particularly attractive targets for cyber criminals. Several analysts have noted that it is highly likely that the dataset includes employees from Fortune 500 companies, which makes it possible for threat actors to isolate specific companies and individuals, and tailor attack techniques to increase their chances of successfully compromising networks or causing financial loss. 

A growing need for better accountability and governance across the lead generation and data brokerage industries is becoming apparent, especially as these datasets continue to intersect with advanced automation and artificial intelligence technologies in a fashion that is unprecedented in the past. 

The security experts say that this incident serves as a reminder that organizations taking care of highly confidential or personal data, as well as encrypting the data, are required to treat access controls, encryption, and continuous monitoring as baseline requirements, and not as optional measures. 

In light of this event, it is imperative that enterprises strengthen their internal defenses by training employees about how to identify social engineering attacks before they take place, improving the process of verifying financial requests, and conducting regular audits to detect social engineering risks before they become exploited. 

Additionally, regulators and industry organizations may be under increasing pressure to clarify accountability standards when it comes to data aggregation practices that rely on large-scale scraping and enrichment on a large scale. 

It is likely that, even though the database was secured, there will be repercussions to the greater extent that the database was exposed, demonstrating how lapses in data stewardship can have a far broader impact beyond a single incident and reshape the threat landscape for businesses and professionals.
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UK Fraud
BritCard Cyber Security Digital ID Identity Wallet UK Fraud

£1.8bn BritCard: A Security Investment Against UK Fraud

 

The UK has debated national ID for years, but the discussion has become more pointed alongside growing privacy concerns. Two decades ago Tony Blair could sing the praises of ID cards and instead of public hysteria about data held by government, today Keir Starmer’s digital ID proposal – initially focused on proving a right to work – meets a distinctly more sceptical audience.

That scepticism has been turbocharged by a single figure: the projected £1.8bn cost laid out in the Autumn Budget. Yet the obsession with the initial cost may blind people to the greater scandal: the cost of inaction. Fraud already takes a mind-boggling toll on the UK economy – weighed in at over £200bn a year by recent estimates – while clunky, paper-based ID systems hobble everything from renting a home to getting services. That friction isn’t just annoying, it feeds a broader productivity problem by compelling organizations to waste time and money verifying the same individuals, time and again.

Viewed in that context, £1.8bn should be considered as an investment in security, not a political luxury. The greater risk is not that government over-spend, but that it under spends — or rushes — and winds up with a brittle system that became an embarrassment to the nation. A BritCard deployment at “cut-price” that ends in a breach would cost multiples of what the original outlay was and would cause irreparable damage to public trust. If it is the state’s desire that citizens adopt a new layer of identity, it must prove that the system is reliable as well as restrained.

The good news is that the core design can, in principle,support both goals. BritCard is akin to a digital version of a physical ID card, contained within a secure, government-issued wallet. Most importantly, the core identity data would stay on the user’s device, enabling people to prove certain attributes — like being over 18 — without revealing personal details such as a date of birth or passport number. This model of “sharing what is necessary,” is a practical approach to privacy concerns as it is designed to limit the amount of sensitive information that will be routinely disclosed.

However, none of this eliminates risk. Critics will reasonably worry about any central verification component becoming a lucrative “honeypot.” That is why transparency is non-negotiable: the government should publish how data is stored, accessed and shared, what protections exist, and how citizens opt in and control disclosure.
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