China Warns Against Foreign Firms Collecting Iris Data via Crypto Incentives

China’s Ministry of State Security (MSS) has issued an urgent public warning regarding the unauthorized collection of iris data by foreign companies, using crypto tokens as an enticement. The advisory, published via the MSS’s official WeChat platform on August 6, cautions users against the potential misuse of biometric information under the guise of digital currency incentives [1]. The warning does not name the specific foreign firm but underscores a broader security threat involving sensitive user data being transferred abroad [1].

The MSS highlighted that iris scans are particularly valuable as a form of biometric identification, offering a level of uniqueness and stability that surpasses fingerprints or facial recognition. Once compromised, iris data cannot be altered, making it a critical risk for identity theft, unauthorized access, and digital impersonation [1]. The ministry emphasized that the unauthorized collection of such data not only threatens individual privacy but also national security, as aggregated biometric records could be leveraged for surveillance, espionage, or cyberattacks [1].

The advisory warns that foreign companies may be leveraging the allure of crypto tokens—often distributed through airdrops or sign-up bonuses—as a method to obtain users’ biometric data. These companies may require users to complete a “Know Your Customer” (KYC) process that includes scanning their iris to receive the tokens or participate in a project. This practice raises concerns about the hidden costs of participating in what appears to be a harmless financial opportunity [1].

The MSS’s alert is not merely a domestic concern but highlights the increasing intersection of digital finance and data security. As more innovative crypto projects emerge, the risk of data exploitation grows. Users are advised to remain cautious of offers that appear overly generous, especially if they require the submission of sensitive biometric information. The ministry also recommended reviewing terms and conditions of platforms, verifying the legitimacy of companies involved, and understanding the long-term risks associated with biometric data [1].

The broader implications of the MSS’s warning extend beyond individual privacy to national security. The unauthorized collection of biometric data by foreign entities could be used for espionage, cyberattacks, or surveillance. While the specific firm involved has not been identified, the advisory reflects a growing concern within the Chinese government about foreign digital asset activities that could threaten national interests and citizen safety [1].

This incident underscores the need for greater vigilance in the digital asset space, particularly concerning the collection and use of biometric data. As the digital frontier continues to expand, the risks associated with data exploitation become more pronounced. The MSS’s warning serves as a call to action for individuals and governments alike to ensure that personal data—especially biometric identifiers like iris scans—is protected from unauthorized access and misuse [1].

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[1] Urgent Alert: China Warns Against Foreign Firms Collecting Iris Information via Crypto Tokens (https://coinmarketcap.com/community/articles/6892d1ea78a0a67c8267a675/)