California Should Pause ID.me Software Deal, Adviser Says (1)

California should not continue contracting with identity-verification software vendor ID.me, the state’s nonpartisan legislative adviser recommended Tuesday, noting concerns about the company’s use of facial recognition software.

The California Legislative Analyst’s Office, providing advice on Governor Gavin Newsom’s proposal of six new deals with vendors to prevent unemployment insurance fraud, recommended withholding action on the ID.me contract. The state began working with ID.me on an automated verification service during a pandemic boom in unemployment and increased fraud in temporary federal benefits.

“Now that this critical period has passed, we recommend the Legislature pause and consider the implications of using third-party facial recognition software ...