The point isn't so much using third party , we use a third party on prem.
My point is very simple : Why on earth would you let discord view my passport ? JUST WHY ?!
Those documents are very sensitive and no one should have access to them unless they have a VERY good reason to do so. PCI DSS treat "card information" like hot lava, the same model should have applied here.
Stripe should have acted as a "Trusted Party" and securely store those documents without giving access to it but just let you extract the information from it.
Thus you would been able to have uniquely identified user , backed up by government id , but you can't get access to the documents and sensitive data should have been redacted .... just like Card Number...
Again unless you are a Fintech / Financial Instituion , with a VALID in effect license , you should not have access to those documents.
And the list goes on...
Here, with this system, they could verify and keep the data regardless of what I think is going on.
There was a story on Reddit a few months back, about a bouncer who, when handed real ID cards, claimed they were fakes, and proceeded to immediately "cut them up" (so that people didn't feel any need to demand them back, since what are you going to do with scraps of an ID card?) The bouncer was actually palming the real ID and cutting up a random piece of plastic instead, and then later handing the real ID card off to the owner, who sold them on the black market. One victim of this scheme figured it out after being a victim of identity theft, as they traced back a submitted capture of the photo ID that some third-party had retained, to the one that got "cut up." The police raided the establishment, and a whole ring of people were caught up in it. It was a whole thing.
There's nothing that leads me to believe that this isn't a simple, obvious, repeatable, low-stakes, high-margin criminal business model. As such, it probably happens a lot.
I would still assume identity theft via websites being hacked is a lot more common, and likelihood is an appropriate factor when evaluating protective actions. But you make a good point about the bouncer.
As a consumer, I would expect Stripe would do the verification and give the business partner the result, but not all the data they used to get the results themselves.
I know this because we use Stripe Identity ourselves (in beta) and user's have no idea that Stripe and us are different companies.
Doesn't that imply that if there's a security breach at Stripe, that your users will blame you [too]
I get parent comment's totally legitimate security concerns. And businesses that have no business having my identity should surely not be asking for it. But I don't honestly understand how this has anything to do with Stripe. These businesses (which for whatever reason are asking for ID verification before doing business with you) are just using Stripes API to verify identity instead of just taking your info themselves.
Any customer giving their information presumably knows they are giving said business their identity documents, the customers might not even know that the business is using Stripe's API.
Furthermore, Stripe is ostensibly coming in here to streamline the process for business taking identity info from customers. Why - in your opinion - is it worse for consumers when these-type businesses (which ask for identity), use their own-rolled id verification than using Stripe's?