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Just like anyone can take anyone's credit card and go shopping - but in contrast Phones are (or at least can be) much more secure.
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That's not what you're competing with. Your competing with a drivers license with a photo (not a great photo) and some countries have pretty easily faked drivers licenses, but others have drivers licenses in hard plastic with holographic features.

The credit card doesn't work as age verification.

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You're competing with photos of a drivers license.
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Not sure if you're joking or not, but Denmark have had people show an edited screenshot of the drivers license app, to get into clubs or buy alcohol.

I think they "fixed" it. I think it has some effect now that only works if you tilt the phone.

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You're competing with that for "I want to make sure the person standing in front of me is of legal drinking age" use-case, but for the remote KYC/age-verification usecases, you're competing with a photo of the document and/or a selfie.

Maybe bundling these under the same system is a mistake and they should be separate systems with different considerations; it would certainly help with arguments about it online ;P

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Bouncer love it, when someone says "oh sorry, I forgot my ID, can you let me in anyway?" they just tell them to download the app :)
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I don't know about other countries, but here it requires your passport or actual drivers license, and a 12 or 24 hour wait, to actually activate the drivers license app.
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Mhh, maybe it was the Sundhedskortet app? But that does not have a photo.

To be honest I just overhead the bouncer talking about them liking the app. Maybe I misheard it.

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We're talking about the EU here, where the standard form of ID is an ID card with very strict requirements, including multiple secure features and an NFC chip with the photo and some other information.
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My bank in Finland allows activating the bank's app remotely. They verify the NFC chip of the ID card in addition to photos and other factors.
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How does the nephew unlock the phone and app?
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If it's just a PIN, and the PIN is his aunts birthday, it might not be much of a challenge. We also have to consider the cases where the adult is complicit, in these cases the app is even less secure than photo ID (for store purchases, not necessarily online).
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If adult is "complicit" they can purchase the stuff for the kid anyway.

Why is that even a scenario to discuss?

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