New privacy-focused identity verification aims to reduce exposure of sensitive personal data amid rising breaches.
StarkWare introduced a self-custody Know Your Customer system using zero-knowledge proofs to verify identities without exposing full documents. The approach targets vulnerabilities in traditional KYC processes, which often require unnecessary personal data sharing.
Data breaches have surged, with over 1 billion healthcare records compromised globally as of 2026, costing an average of $7.42 million per incident. The U.S. reported 772 major healthcare breaches in 2025, a record high. Crypto sector breaches, like Ledger’s 2020 hack, exposed 270,000 customer records and triggered persistent phishing attacks.
StarkWare’s model contrasts with centralized biometric systems like Worldcoin, which faced criticism over data custody risks. The new system prioritizes user control over personal information to mitigate breach fallout.