Quito shuts unlicensed iris and facial scanning booths paying users in cryptocurrency
Ecuadorian authorities shut down two unlicensed establishments in Quito that paid users 50 to 60 units of cryptocurrency in exchange for iris and facial scans, citing lack of operating permits, inadequate safety conditions, and risks to biometric data security. Regulatory authorities warned that such biometric data could be misused by cybercriminals.
What happened
Two unlicensed establishments in Quito—one in La Mariscal and one in San Bartolo—operated iris and facial scanning booths that paid users between 50 and 60 units of cryptocurrency in exchange for biometric data. The operations were promoted via social media and attracted dozens of people. The venue operators claimed the collected biometric data would not be stored and would remain under user control.
During inspections on 22 November 2024, the Agencia Metropolitana de Control found the establishments lacked operating licenses and permits from the Cuerpo de Bomberos, and operated with inadequate safety conditions including insufficient evacuation routes and ventilation.
Reported impact
The venues posed safety risks due to overcrowding and deficient building conditions. Regulatory authorities warned that exposure of biometric data such as iris recognition could be obtained by cybercriminals and used to steal information.
Index analysis
Arcotel noted in August 2024 that similar mass iris scans had occurred in Guayaquil and Quito, prompting warnings that 'identity has no price' and that biometric data including iris recognition, fingerprints and voice can fall into the hands of cybercriminals.
Governance controls
The Agencia Metropolitana de Control closed both establishments and imposed fines of up to $1,840 per case on the operators for operating without licenses and safety permits, in coordination with the Policía Nacional, Cuerpo de Agentes de Control and Secretaría de Seguridad.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.