Latest Event Updates
Biometric Identity Theft
Recently, I have been researching the potential for fraud and identity theft using fingerprints from photos posted on social media. Last week, Amazon released its “Amazon One” Palm Scanner to pay for purchases. That announcement made me wonder: What are the potential implications for fraud and identity theft using biometric data taken from images?
Technology continues to improve rapidly, which often means, “Where there is the will, there’s a way.”
There are a surprising number of ways to accurately identify someone from a photo or video. Moreover, technology can copy fingerprints from social media photos taken up to three meters away. New technology has been proven effective at using 3D printing technology to create “fake fingerprints” that bypass many fingerprint scanners. Other factors may be at play (such as temperature), but that is speculation at this point.
Since fingerprints can be copied from photos taken up to three meters away, can a palm print be copied from a photo taken 5-10 meters away? That question led to an interesting but unscientific experiment where I took pictures of my hand, enlarged them, measured the distance between the ridges and furrows of my fingers and my palm, and compared the results. Spoiler – probably not (yet) – but likely not far away given the rapid advancement of AI.
Several areas showed similar distances for both my fingers and palm. But there were also areas on my palm where the average distance between “landmarks” was 3-5+ times greater. It turns out that a palm image is often segmented into 3-4 distinct regions for identification purposes, likely due to this type of variation. This link helped me understand the process.
This research led to an idea for a chip-based embedded filter for smart devices and laptops. It would obfuscate key biometric information when extracting the data for display without affecting the integrity of the original stored image. This functionality would automatically provide an additional layer of privacy and data protection. It would require optimized object detection capabilities (possibly R-CNN) that were highly efficient and run on a capable but low-energy processor like the ARM Cortex-M. Retraining and upgrades would be accomplished with firmware updates.
Edit 2020-10-13: This article on “Tiny ML” from Medium.com is the perfect tie-in to the abovementioned idea.
While Amazon’s technology is much newer and presumably at least partially based on their 2019 Patent Application (which does look impressive), it makes you wonder how susceptible these devices might be to fraud given reports of the scans occurring “almost instantaneously.” Speed is one aspect of successful large-scale commercial adoption, but from my perspective, the system’s accuracy and integrity matter far more.
Time will tell how robust and foolproof Amazon’s new technology really is. Given their reach, this could occur sooner rather than later. Ultimately, multiple forms of biometric scans (such as a full handprint with shape, palm, and fingerprints or a retina scan 2-3 minutes prior to the palm scan to maintain performance) may be required for enhanced security, especially with mobile devices.
Additional Resources:
- An in-depth NIH document that helps explain the process and issues.
- A Simplified Guide to Fingerprint Analysis
- This is a 2012 Fingerprint and Palmprint Recognition Approach Report from the European Journal of Scientific Research that has many images and very good explanations.
- “A Textural Approach to Palmprint Identification“
Are you Thinking About Starting a Business?
The last post on Starting a Business was popular, so I wanted to share a key lesson I learned and link to previous posts that offer insights as you launch your own business. If you have any questions, just post them in the comments; I’d be happy to reply.
The COVID-19 pandemic has created a great deal of uncertainty and opportunity. For many, now is the ideal time to explore their dream of starting a business and jumping into entrepreneurship. That can be exciting, fun, stressful, financially rewarding, and financially challenging, all within the same short period of time.
Being prepared for that roller coaster ride and having the ability and strength to continue pushing forward is important. Something to understand is that “Things don’t happen to you. They are the Direct Result of your own Actions and Inactions.” That may sound harsh, but here is a prime example:
When I was closing my consulting business down, I trusted my Accountant and Payroll company to handle all of the required Federal, Wisconsin, Ohio, and Colorado filings – something they stated they would handle, and I accepted at face value. Both companies had done a great job before, so why would I expect any less this time?
About nine months later, I started receiving letters from Ohio and Colorado about filings due, so I forwarded them to the Accountant and Payroll company. I thought this was “old business” and was being handled, plus I had moved on. It was probably just a timing error, something easy to explain away.
Skipping forward nearly three years, I had been threatened by the IRS and the revenue departments in both Ohio and Colorado. I started with a combined total of nearly $500K in assessments. Slowly that dropped to $50K, and then to $10K. I spent countless hours on the phone and writing letters explaining the misunderstanding. It wasn’t until I finally found a helpful person in each department willing to listen and tell me specifically what needed to be done to resolve that situation. My final cost was around $1,000. I was relieved that this fiasco was finally over.
I blamed both the Accountant and Payroll Service for these problems for the longest time. Ultimately, I realized that it was my business and, therefore, my responsibility to understand the shutdown process – regardless of who did the work. I would have saved hundreds of hours and several hundred dollars by gaining that understanding earlier.
I was not a victim of anything – this situation directly resulted from my own inaction. It didn’t seem very important at the time, but my understanding of the situation and its importance was wrong, and I paid the price. Lesson learned. It was my business, so it was still my responsibility to the very end.
Below are the other links. You don’t have to read them all at once, but it’s worth bookmarking them and reading one per day. Every new perspective, idea, and lesson learned could be the thing that helps you achieve your goal a day, week, or month sooner than expected. Every day and every dollar matters, so make the most of both!
- Comments on and a link to an article on Curt Culver about Entrepreneurship.
- Comments on and a link to an HBR article about Start-ups and Entrepreneurship.
- Innovation, Intelligent Failure, and Failing Productively.
- Acting Like an Owner – Good Preparation for Becoming an Owner.
- Profitability Through Operational Efficiency.
- What Are You Really Selling?
- Continuous Improvement and a Growth Mindset.
- The Value Created by a Strong Team.
Presentation about Starting a Business and Entrepreneurship
It is interesting how often you see ads for franchise offerings that tout, “Become your own boss.” While that may not be all bad, it is just the tip of the iceberg. The presentation below is intended to provide insight to people considering starting their first company. This was from a one-hour presentation that glosses over many things, such as the need for registrations and insurance, but it could be helpful for a first-timer.
One of the first and most important lessons I learned when I started my consulting company long ago was that paying attention to cash flow was far more important than focusing on my balance sheet. Once you understand a problem, it becomes easy to change what you do to manage it. For example, using fixed pricing based on tasks where we received 50% up-front and the remaining 50% upon acceptance of the deliverable smoothed out cash flow, which was a big help.
So, take a look and post any questions that you may have. If one person has a question, many more will likely do as well! Cheers.
The Coming Changes to Manufacturing
Recently, I spoke with someone on a team analyzing ways to “mitigate the risk of exclusive manufacturing in China” without fully divesting their business interests in a growing and potentially lucrative market. This bifurcation exercise got me thinking about how many other companies are evaluating their supply chain relationships, inventory management, and the predictability of their cost of goods sold.
In the mid-1990s, I had done a lot of work with the MK manufacturing software that ran on the Ingres database. Some issues were performance-related and fixed by database tuning; some were fixed by using average costs instead of a full Bill of Materials (BOM) explosion with dozens of screws in a window; but some were more interesting and more business-focused.
After NAFTA became law, one manufacturer built a facility in Mexico and started manufacturing a few basic but important parts. When I arrived as a Consultant, the main problem they faced was a reject rate of roughly 20% and additional related QA costs. My suggestion was to treat this part (a single piece of steel, like the rotor from a disk brake system) as a component and build in the cost of both scrap and QA. They could then benchmark the costs against other suppliers in an apples-to-apples comparison to determine if they really saved money. That approach worked well for them.
While that approach helped manage costs, it did not address the timeliness of orders or lead time required – important aspects of Just-in-Time (JIT) manufacturing. Additionally, it should be possible to estimate shipping costs by considering changes in petroleum costs or anticipated changes in demand or capacity.
Systems out there claim to estimate the cost and availability of commodities based on various global factors and leading indicators. It is tricky, to say the least, and we can’t anticipate an event like a pandemic. But companies that manage their inventory and production risk best will likely be the ones that succeed in the long run. They will become the most reliable suppliers and have increased profits to invest in further growth and improvement.
The next 2-3 years will be very interesting due to technological advances (especially AI) and geopolitical changes. Those companies that embrace change and focus on real transformation will likely emerge as the new leaders in their segments by 2025.
New Perspectives on Changing Business Ecosystems
One of the many changes resulting from the COVID-19 pandemic has been a sea change in thoughts and goals around Supply Chain Management (SCM). Existing SCM systems were upended in mere months as procuring raw materials and components became challenging, manufacturing shifted to meet new, unanticipated needs, and logistics challenges arose from health-related staffing issues, safe working distances, and limited shipping options and availability. In short, things are a mess!
Foundational business changes will require modern approaches to Change Management. Change is not easy – especially at scale – so having ongoing support from the top down and providing incentives to motivate the right behaviors, actions, and outcomes will be especially critical to the success of those initiatives. And remember, “What gets measured gets managed,” so focusing on the aspects of business and change that matter will become more important.
Business Intelligence systems will be especially important for Descriptive Analysis. Machine Learning will likely play a larger role as organizations seek a more comprehensive understanding of patterns and work toward accurate Predictive Analysis. And, of course, Artificial Intelligence / Deep Learning / Neural Networks capabilities will accelerate, filling several gaps, including the need for enhanced Prescriptive Analysis. Technology will provide many of the insights business leaders need to make the best decisions in the shortest time, while accounting for the complexity of cost/benefits/risk/competing efforts.
This is also the right time to consider upgrading to a collaborative, agile business ecosystem that can expand and adapt quickly and cost-effectively to whatever comes next. Click on this link to see more of the benefits of this type of model.
Whether you like it or not, change is coming. So, why not take a proactive posture to help ensure this change has a positive impact and meets your company’s or organization’s objectives?
Changes like this are all-encompassing, so it helps to start with the mindset, “Win together, lose together.” In general, having all areas of an organization moving in lockstep toward a common goal is ideal. Critical junctures like these are what require change and drive success.
Where Ideas, Experiences, and Lessons Learned Intersect 