Decentralized biometric identification platform startup Anonybit Inc. today announced that it has raised $3 million in new funding for its privacy-by-design identity management solutions to enterprises battling data breaches and account takeover attacks.

Founded in 2020, Anonybit’s decentralized biometric identification platform is designed to protect personal data and digital assets. The company says its integrated identity management platform, called “Genie,” is the first privacy-by-design offering that connects the entire use lifecycle, from digital onboarding to authentication, to close the gaps exploited by attackers.

Anonybit Genie unifies the identity lifecycle by connecting digital onboarding to authentication and account recovery through the use of decentralized biometrics along the user journey.  The approach can prevent synthetic identity fraud and account takeovers, supporting a wide range of enterprise use cases.

Genie encrypts sensitive data such as biometrics, private keys and other digital assets and distributes them across a peer-to-peer network of nodes. It then employs multi-party computing and zero-knowledge proofs to perform matching functions in a decentralized manner.

The engine that powers Genie, which is calls as Decentralized Biometrics Cloud, helps companies implement decentralized storage and matching facilities for solutions. The platform supports third-party algorithms for so-called decentralized 1:1 verification and 1:N identification for multiple biometric modes, including face, voice, fingerprint and iris, and can be implemented as a standalone solution or as part of an integrated offering.

“We all read the headlines and continue to be alarmed by the rapid pace of increased fraud, which suggests that existing solutions are mere Band-Aids,” Frances Zelazny, Anonybit co-founder and chief executive officer of Anonybit, said ahead of the announcement. “When thinking about the root cause, it boils down to two things. Personal data is stored in central honeypots that are impossible to protect and we allow the use of this data to authenticate ourselves.”

It’s a never-ending cycle, he added. “Many players in the industry aim to expand their offerings to address more comprehensive use cases in identity, but only Anonybit can get us out of the current paradigm by making it safe to store biometrics,” Zelazny said.

The new funding was led by JAM FINTOP Inc., with Connecticut Innovations Inc. also participating. Including the new funding, Anonybit has raised $8 million to date.

Image: Anonybit