Hosted by the Adult Provider Network (APN)
Thursday May 15 2014, 2.30pm to 5.30pm
Portland TV, Northern & Shell Tower, 4 Selsdon Way, London E14 9GL
Dr. Rachel O’Connell (RO), Founder of GroovyFuture Ltd
Chris Ratcliff (CR), Managing Director, Portland TV
Peter Murray (PM), Head of Gaming at GBGroup Plc
Joe Basso (JB), Business Development Manager, CallCredit Information Group
Rob Johnson (RJ), Chairman, Telecom 2
Michael Post (MP), Partner in Isys Group / Intelligent ID
Rasmus Groth (RG), Founding Director, Veridu
Alex Porter (AP), Development Manager, AvocoSecure
APN – an alliance of regulated on-demand providers seeking to address the challenges of working under the regulatory framework of ATVOD – The Authority for Television On-Demand.
Opening Remarks from Chris Ratcliff (CR)
link > CR_AVSeminarv2 Seminar presentation | PDF (300kb)
CR scoped out the agenda of the seminar and explained that the first session will look at practical AV solutions for the here and now and the second session will look towards the future and where the industry might want to be in the next 12-18 months.
APN is formally recognised by ATVOD as a subset of the Industry Forum which allows APN to maintain effective and open dialogue with the regulator going forward.
CR explained that the role of the Adult Provider Network is to:
- To represent the commercial interests of regulated adult providers
- To raise industry standards
- To articulate a clear industry policy position on child protection
- To offer support and guidance
- To act as a forum for the exchange of technical expertise through seminars such as: Age Verification In practice – Workable Solutions for the Adult Industry
CR explained the need to look at ATVOD’s Rule 11 which relates to Harmful Material and specifically to the Protection of Under-18s. It states if an on-demand programme service contains material which might seriously impair the physical, mental or moral development of persons under the age of eighteen, the material must be made available in a manner which secures that such persons will not normally see or hear it.
ATVOD’s interpretation of this requirement is that hard-core porn falls into the category of material which might seriously impair children and that it should be offered behind Content Access Control which verifies that the user is aged 18 or over at the point of registration using ‘technical tools’ for age verification
The flaw in the scope of Rule 11 from a child protection standpoint is that it only applies to UK-based services, so those operating or purporting to operate offshore, continue to offer hard-core porn with no access control
There is talk of restricting the flow of money from UK banks to non-compliant foreign sites. There’s also a licensing system being mooted which like the Gambling Bill currently passing through the Commons would shift the focus of legislation away from point of establishment or editorial control in the case of on demand services to point of consumption
APN supports any such initiative which would bring regulatory parity and level the playing field for UK companies
CR outlined the key objective of the seminar which is
- To look at such technical tools with a view ultimately to growing and refining the list of accepted means of validating age:
- To offer takeaway solutions for an industry facing an immediate problem of having to age verify users. This presents a number of challenges for this afternoon’s panellists:
- The need for a low cost low friction solutions that deliver excellent match rates
- The need to be able to verify that customers are 18+, and only this fact, without intrusive identity checks requiring the exchange of sensitive personal data
Presentation by Dr. Rachel O’Connell (RO), GroovyFuture Ltd
RO addressed age verification and the lessons to be learnt from the online gambling industry.
RO raised concerns about Privacy and Liability:
- Traditional age verification solutions pose a significant privacy risk due to the practice of capturing and storing large amounts of data about adults
- The need for standards with regards to how these solutions will operate and what levels of confidence will be associated with a pseudo-anonymous age verification process
- Liability is a major concern not only for organisations that are in a position to share age-related information but also those companies that relied on the information.
RO raised the issue of Compliance Cost: Traditional age verification was viewed in terms of a burdensome compliance cost that would have a negative impact on revenue.
RO highlighted the potential of age verification as a revenue generator.
Age verification feasibility studies conducted in the UK. These small scale studies are helping the UK Government and a number of small business sectors to learn how age verification might work in practice and on a larger scale.
Key focus of the current discussions about age verification is on defining viable and sustainable commercial models to support sustainable large-scale development.
In the UK, leveraging an ‘identity ecosystem’ to deliver more efficient, cost effective ID and age verification processes is recognised as a potential source of revenue for Identity and Attribute Providers e.g. Post Office, Personal Data Stores (PDS), mobile operators.
Streamlining ID and age verification processes may have a positive impact on compliance costs for a number of business sectors.
RO raised the issue of the absence of standards:
- There were substantial technical integration challenges and costs associated with the solutions available on the market in 2008.
- Not feasible to expect global businesses to adapt their service provision in response to a wide variety of different solutions.
RO explained the issue of Global Standards:
- European Parliament is reviewing legislation that would require the national electronic Identity Ecosystems across Europe to mutually recognise one another.
- The technical standards on which identity ecosystems around the globe were and are being built upon enables inter-operability between the different systems.
- Identity Ecosystems have the potential to be scalable and provide both national and global companies and governments with ID and age verification solutions to meet clear business public service needs.
RO explained some of the Barriers to Innovation:
Representatives from a range of business sectors insisted that age verification would serve as a barrier to innovation of online services and products, if the high costs associated with age verification were expected to be borne by start-up companies.
RO raised the point that streamlining pseudo-age verification processes for the adult industry and developing self-regulatory good practices will serve to off-set overly burdensome legislative requirements and protect revenues.
Presentation by Peter Murray (PM), GBGroup
link > GBG Adult AV presentation May 2014 | PDF (1.2 Mb)
PM addressed the regulatory aspects of identity and age verification and how organisations already work to meet this need whist improving their customer journey, enhancing their brand reputation and increasing business profitability.
PM gave a brief overview of the GBGroup:
- Established in 1989
- Mar Cap £185 MLN
- Fully listed PLC
- 380 employees in offices in London, San Francisco, Melbourne, Kuala Lumpur, Beijing, Barcelona, Edinburgh, Glasgow, Hong Kong.
- 6 Corp acquisitions since 2011
- HQ in Chester UK
PM outlined their regulated clients:
HSBC, GE Capital, E-Bay, KerStars, Etsy, Totesport, Boyles Sports, 888.com, Bwin, Littlewoods Poker, Smart Live Casino, IGT, Probability Plc, Etoro, Betfair, Bet365
PM explained the customer journey through the technology deployed:
- to validate the identity of the individual: Know your customer (KYC) data confirms – who they are, where they live, their age, how to contact them
- ID Document Validation: confirms the validity of actual documents and security features including: Passports, National ID cards, Driving Licences, Credit and Debit Cards, Utility Bills
- Fraud Management Solutions (FMS) indicate: Their physical location, the ID of the device being used, the likelihood that they will pay, their usual behaviour patterns, examples of previous suspicious activity, whether they have been flagged as a fraudster in the past.
PM detailed the breadth of data in the UK – e.g. postal records, electoral roll, consented marketing data, landline telephone directory, mortality records , fraud signals, national ID cards etc.,.
Customers input their name, address, date of birth and are then taken through to a single, secure, transparent audit trail
PM stated that it is important that Age Verification Solutions:
- Embrace regulation
- Make it work to your advantage
- Make the customer experience your priority
Presentation by Joe Basso (JB), CallCredit
link > Call Credit – AgeVerificationForRestrictedServices | PDF (760kb)
JB demonstrated the solutions CallCredit offer to enable electronic customer identity verification and card ownership checks.
JB explained what they had learnt from online gaming:
- Customers value regulated brands
- Customers accept ID requirement
- Regulator recognises eIDV as robust
- Risk based approach developed for Age & ID Operators accepting of regulation
- Advertising key to growth is dependent on licence
- Match rates are key
JB explained highlighted CallCredit’s Age Verification Solutions:
- Simple ID checks against the full range of our credit data sources
- Proven highest match rates against competitors
- Verifies the DOB provided against multiple records within their database
- Can provide a confidence indicator where multiple DOB’s are present
- Supports passport verification
- Available as API, Web and Batch services
- Based on data recognised as AML compliant in the UK
JB highlighted CallCredit’s unique selling points:
- CRA Credentials – and agile approach
- Significant gaming footprint
- Desire to shape controls in restricted services
- Robust data sets
- Best match rates – over 90%
- Extensible product set
Presentation by Rob Johnson (RJ), Telecom 2
link > T2_Age-Verify | PDF (1.1Mb)
RJ discussed the scope to enable owners of registered mobile handsets to verify that they are 18+ years old
RJ explained that Telecom2 are all-in-one telecommunications experts
RJ outlined what they do:
- Interconnected Tier2 Telecoms Carrier with Voice/SMS/Credit Card Billing
- Number of Adult Industry clients Chat Lines/Text Chat/Cam Streaming/Pin and Play/Adult Store Retail/IVR payment solutions.
- Focused in-house development team delivering billing solutions
- Secure environment with clear reporting and audit trails.
– RJ stated that 64% of people polled said that mobile operators are the ideal trusted entity for age verification and identification.
Presentation by Michael Post (MP), Intelligent ID
link > iid Adult Market Presentation | PDF (800kb)
MP gave an overview of how iiD have integrated with the UK adult industry and established Déjà Vu as a federated database of pre-verified users
MP explained what iiD provides:
- Solutions to the adult industry, some of the world’s largest payment service providers, on-line gaming operators, retail, banks, building societies and credit card providers.
- iiD’s solutions are robust, effective and highly regarded as ‘fit for purpose’ and meet the necessary compliance requirements
MP explained the history of iiD:
- Global provider of identity information services
- Part of the Isys Intelligent Systems Group Established in 1999 – 1000+ clients worldwide
- iiD launched in 2008
- 80 customers
- Only current provider to the Adult market
- Compliance with ATVOD requirements for age verification
- Leading Emerging Payments Service Provider 2014
- Established long term relationships in various regulated markets
- Robust, effective and highly regarded as ‘fit for purpose’
– MP explained the Unique Selling Points of the iiD solution:
- Only incumbent supplier to the Adult industry
- Cutting edge, proven platform
- The best match rates (in 100% of competitive trials) through continuous innovation
- Unique development support, World-wide data, data collection help and advice
- Options for zero or little development integration
- Wider business system integration
- Available today
Presentation by Rasmus Groth (RG), Veridu
link > Pitch APN event | PDF (8.5 Mb)
RG addressed how Veridu are enabling an Internet user’s social identity to be used to verify age and explore the notion of tokenised identity systems.
RG outlined some of the current problems facing age verification in the adult industry:-
- Current industry enrolment rate: 50%, if you are lucky!
- Problem: Limited match rates using only traditional methods only cover certain demographics
- Prohibitively expensive: The business models – particularly for the free content sites – are very different from e.g. iGaming. The value for the customer is significantly lower for the adult industry. Cost can be anything between 25p and £1.50 to verify someone.
- Intimidating for the customer to provide personal information
Veridu proposes a Federated ID. Traditional methods & online footprint:
- Better match rates
- Better authentication
- One time cost
- Lower blended prices
- Federated Identity Gateway
- Social and mobile verification inclusion
- Augment with traditional data models
- Enables regulation of both paid and free content sites
Presentation by Alex Porter (AP), AvocoSecure
link > Avoco Identity and Trust Platform | PDF (700kb)
AP provided a demonstration of AvocoID’s Trust platform which can provide pseudo-anonymous age verification.
AP explained what Avoco provides. Packaged identity trust platforms for
- Government – e-Citizens and G2B
- Commercial – own customers and as re-sell platform
- E-Commerce – e.g. Age Verification, anti-money laundering checks, location aware services, payment services
Avoco’s Trust Platform was selected for the UK Government Skills Funding Agency (SFA):
- The SFA currently has 16 million unique user learner records.
- The platform has gone through 10,000 hours of independent testing.
- This trust platform meets the UK Government standards and delivers Government level 1 and 2 assured identities for the SFA.
- Trust Level 2 Identity (TL2): TL2 accounts can only be created after Identity Verification, through an on-line or off-line route.
- The users’ personal details including date of birth and address are then submitted to a credit reference agency for Verification.
- If the details are matched, the user is asked a number of personal questions to validate their identity.
- This is being extended to include DVLA and Passport Office data checks.
CGI are partnering with Avoco to deliver our Trust Platform to Government and Commerce. The same core Trust Platform technology that is currently deployed in the SFA, will be used to deliver independently hosted solutions for other sectors or companies. CGI (formerly Logica) are ranked as the 5th largest global IT
AP explained the Unique Selling Points of Avoco’s solution:
- Identity Data and Services Broker
- Incorporating Usability/ Flexibility/ Elastic Scalability /Security /Dynamic
- SSO & SLO Federated identities:
- Supports Cloud based tokenised identity systems that can be used to federate associated sites/services.
- The platform incorporates the option to obtain user permissions/consent to utilise data.
- The site uses Opaque persistent identifiers to prevent tracking across the web.
- User Anonymity
- Users can remain anonymous, whilst showing the service that this person is over a certain age (privacy of date of birth being retained by only showing the service if the user is over or under a specified age).
- Default setting for restricted content would be the user remains anonymous.
- The platform can be configured to support Data Anonymization of user payment details.
- Location awareness
- This option allows services/sites to verify a user’s location. This can be used to apply rules in line with regulatory requirements of a jurisdiction.
Questions & Answer Session
RJ raised the point of the difficulty and sensitivities around capturing information and ID in the adult industry
MP quoted that 64% of consumers trust their mobile operators are the ideal trusted entity for capturing ID
The majority of attendees agreed that the customer user experience is generally unpleasant
All attendees agreed that a Federated Gateway which covered all liability costs would be a great way forward for the industry.
RG proposed a one time ID process, where costs are shared and a lower blended price is achieved. It could include an online footprint with much better match rates.
65% of customers don’t have a credit card
SMS and mobile is a good option to secure ID
RO highlighted the importance of the industry coming together and proposed that the industry should form a Working Group and hold and participate in other seminar and industry events.
RO concluded that there is an appetite for good practice and good guidelines within the industry – which would serve as formal recognition of APN as a body