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How the company deserved the dislike of human rights activists, what services it provides to the American security forces, how the Russian hacker attacks on PayPal influenced its creation and why it is accused of facilitating the tracking of immigrants, we will now figure it out! Palantir provides its products to a wide range of customers, but its main customers are intelligence agencies and government organizations.
Palantir software allows you to compare data from many sources, find relationships between them and visualize them in the form of various diagrams. Human rights activists believe Palantir's cooperation with certain US government agencies may violate human rights.
Founded in 2003, Palantir takes its name from the palantir stones in J.R.R. Tolkien's legendarium. With their help, it was possible to see what was happening or what happened in another place. Palantir is the brainchild of renowned entrepreneur and investor Peter Thiel, so the Lord of the Rings reference is not surprising. He often draws inspiration from the Tolkien universe - the names of at least five companies co-founded by Thiel are taken from Tolkien's writings. Thiel is known as "the PayPal mafia don". It was while working at PayPal that he got the idea to create Palantir. And the Russian hacker contributed to this.
In his book From Zero to One. How to create a startup that will change the future Thiel spoke about the problem that PayPal faced in the mid-2000s - the company could not track a large number of transfers and due to credit card fraud, it was losing more than $ 10 million monthly . Initially, an automatic algorithm for tracking transactions, created by mathematicians, did not work - the scammers quickly adjusted to it and changed their tactics.
Later, PayPal rewrote the program using a hybrid approach - "the computer marked the most suspicious transactions in the user interface, and the human operators already made the final decision whether it was fraudulent or not." "We named this hybrid system Igor, after a Russian internet scammer who boasted that we could never deal with him," Thiel writes. Thanks to the new solution, the first quarter of 2002 was the first profitable quarter in PayPal history. The FBI got interested in the decision and asked permission to use "Igor" for solving financial crimes.
After the sale of PayPal, Thiel continued to think about a solution and shared with his fellow student Alex Karp the idea of a new startup - a symbiosis of humans and algorithms in data analysis to find terrorist networks and financial fraudsters.
Subsequently, this idea will be embodied in the creation of a software company that allows you to extract maximum information from disparate data sources. She will be named Palantir, and Karp will take over as CEO. In addition to Karp, Thiel recruited ex-PayPal engineer Nathan Gettings and two Stanford alumni Joe Lonsdale and Stephen Cohen to create Palantir.
They had to develop an algorithm. Despite the FBI's interest in the Igor solution, government agencies did not immediately notice Palantir, which offered a similar algorithm with an easy-to-use interface. Initially, the development was fully funded by Thiel himself.
Alex Karp, who was tasked with finding funding, was unlucky - dozens of investors turned down the startup. However, soon Palantir nevertheless became interesting - the company received $ 2 million from the venture capital arm of the CIA In-Q-Tel. "The In-Q-Tel investment gave Palantir something more important than money: CIA approval.
As the doors began to open in Washington, Palantir began to attract fans from intelligence and national security organizations, "writes Intelligencer. Subsequently, Palantir's clients included various government agencies, including the FBI, the US Department of Homeland Security, the NSA, the US Air Force and others. Palantir's customers included the Los Angeles Police Department.
Sarah Brayne, a sociology professor at the University of Texas at Austin, has spent over two years studying how Los Angeles cops use the system. The results of her research have not only lifted the curtain on exactly how Palantir works, but also caused many to worry about the consequences. The Palantir database contained standard information about citizens - name, gender, place of study, and the like.
Additional information came into the system from government agencies, for example, from the US Department of Motor Vehicles. It was also populated with data purchased from private companies. The system included not only offenders, but also their contact persons. "I would warn against the thought that if you have nothing to hide, you have nothing to fear. This logic is based on the assumption that information [into the system] is being entered without error or prejudice, "Brain said.
Palantir software scans a variety of data sources - financial documents, flight booking information, cell phone data, social media messages - and looks for connections analysts might miss, Bloomberg reported. It then presents the detected connections in easy-to-interpret graphics that look like spider webs.
Reporters reviewed the user manual for the Palantir Gotham app used by law enforcement agencies. According to him, the police could obtain extensive information about a person, having practically no data about him - for example, knowing only the name or number of the car. Some data sources - such as marriage, divorce, birth, and business records - also included data on other people who are associated with the person.
Sarah Brain called this secondary surveillance network. "When the police become interested in someone, they don't just collect phone numbers, business relationships, the suspect's travels, and the like. She also collects information about people associated with him, "writes Vice. A special tool allowed the police to filter, sort, display, analyze and export various data.
Found relationships are visualized using charts, histograms or timelines - the tool selected the best option based on the analyzed data. When a person appeared in the system, a police officer could "subscribe" to him, follows from Brain's study of the interaction of Los Angeles law enforcement officers with Palantir.
For example, a police officer could receive a notification on the phone when the car of a person who interested him was in a "suspicious" area. This was achieved by integrating data from outdoor video surveillance cameras into the Palantir system. "Without public scrutiny or regulation, Palantir has helped LAPD build a vast database of names, addresses, phone numbers, license plates, friendships and romantic relationships – guilty, innocent, and those in between," writes BuzZFeed.
Another customer for Palantir was the US Immigration and Customs Enforcement (ICE). In 2014, she awarded the firm a $ 41 million contract to build and maintain a tracking system. Human rights activists are convinced that Palantir played a key role in the deportations of illegal migrants. The company insisted that they did not work with the ICE department responsible for the detention of undocumented immigrants and deportation. However, Palantir's assurances have not convinced human rights defenders.
Amnesty International criticized the company's contracts with ICE and said Palantir was "failing to meet its human rights obligations." Particular attention to the collaboration between Palantir and ICE is also riveted because of Peter Thiel's ties with US President Donald Trump, who is known for his anti-immigrant rhetoric. Thiel is perhaps the only Silicon Valley representative to openly support Trump.
Karp, who harshly criticized Trump in 2015, was spotted meeting with him among the leaders of large technology companies immediately after the latter was elected president. Palantir's work with ICE has generated internal resentment among the company's employees. Karp said that cooperation with the authorities will continue. "Silicon Valley says to the average American:“ I'm not going to support your need for defense, "while it sells its developments to countries hostile to America. This is the position of the losers, "Karp said.
This patriotism is almost the fundamental idea of Palantir. The company's filed to go public says it "does not work with clients or governments whose positions or actions are incompatible with the mission to support Western liberal democracy and its strategic allies." The fact that the main clients of Palantir are precisely the US security forces and intelligence services fully reflects the company's commitment to this mission.
As Bloomberg wrote, according to some reports, the Palantir system even helped to eliminate the terrorist Osama bin Laden. The company does not confirm or debunk these rumors. Thiel in his book only stated that "he cannot tell anything about that operation." He noted that with the help of programs created by Palantir, analysts were able to predict "where the Afghan insurgents are planning to set the bombings."
At the same time, Palantir is trying to ease its dependence on government contracts and expand its client base. Commercial clients work with Palantir Foundry, a data integration platform. The financial holding JPMorgan became one of the first corporate clients of the company. However, this collaboration was initially clouded by a scandal. In 2009, Palantir specialists worked with the bank's insider threat detection team, Bloomberg reports.
Palantir software analyzed e-mail, browser history, transcripts of telephone conversations, identifying keywords and behavior patterns of bank employees. For example, the Palantir algorithm alerted JPMorgan's insider team when an employee started arriving late for work, a sign of potential frustration. The workers were shocked that "no one from the bank or Palantir set any restrictions," the newspaper writes. This story ended with the bank's top managers finding out that they too were being followed. "A platform developed for the war on terrorists has been used against ordinary Americans," Bloomberg concludes. To meet its privacy and security commitments, Palantir catalogs and labels system users' data - everything is recorded.
The company is also trying to follow certain "ethical standards" - an ethics hotline called Batphone has been set up for Palantir employees. It allows them to anonymously report to Palantir management about work for a client that they consider unethical. A hotline appeared after the WikiLeaks scandal. In 2011, it became known that one of the employees discussed in emails the possibility of spying on WikiLeaks informers in order to prevent the organization from disclosing documents from Bank of America.
Karp has made a public apology and said Palantir supports the right to free speech and privacy. Karp himself believes that the company can find a balance between protecting privacy and ensuring security. "I didn't sign up for the government to know when I'm smoking a joint or [with whom] I'm having an affair," Karp quotes Forbes.
In his letter, Karp almost directly accused Silicon Valley companies like Facebook and Google of selling personal data and intruding on privacy. "Software projects with our country's defense and intelligence agencies, whose missions are to keep us safe, have become controversial, while companies based on advertising money have become commonplace," Karp writes.
He noted that the Silicon Valley engineering elite may know more about software creation than anyone else, but "don't know more about how society should be organized and what justice requires." But as Intelligencer points out, his argument ignores the fact that Palantir was used to analyze data from social media, including Facebook posts. In 2020, Palantir directly listed its shares on the New York Stock Exchange (NYSE).
According to documents disclosed by the US Securities and Exchange Commission, the company had 125 clients in the first half of 2020. Palantir's revenue for this period reached $ 481.2 million. It also follows from the documents that revenue from government contracts increased by 76%, and from commercial contracts - by only 27%. Cumulatively, since June 2019, it has almost halved. Data from Palantir documents filed with the US Securities and Exchange Commission At the same time, Palantir has suffered losses every year since its inception, the company itself pointed out in the section on risks. A significant portion of the revenue comes from a limited number of customers. In addition, according to Bloomberg Businessweek,
investors will have little or no influence on management decisions, since Palantir is designed in such a way that Thiel, Karp and third co-founder Stephen Cohen control half of the voting shares through the trust indefinitely." The publication notes that the company can afford it in part because its software is "almost perfect for solving the problems associated with the coronavirus pandemic." At the end of April, the US Department of Health and Human Services (HHS), which is responsible for tackling the pandemic in the United States, awarded Palantir a $ 25 million contract.
The company is to oversee HHS Protect's data collection and analysis platform. "The deal was one of more than a hundred that Palantir struck in the early days of the pandemic - 83 of them between March and early April - and this is one of the reasons for the improvement in the company's financial performance this year," Bloomberg Businessweek notes. Against the background of this transaction, several members of Congress at once asked what kind of data HHS Protect would collect and how they would use it, recalling the ICE scandal.
"We have concerns about how the existing Palantir system used to track and arrest immigrants will be supplemented with personal health information from HHS Protect," the letter said. Deploying large-scale citizen tracking systems during a pandemic is a serious concern for human rights defenders. Especially when the companies creating such systems are closely associated with the authorities.
$BKYI U.S. Government Services Administration (GSA) Deploys BIO-key’s PortalGuard Identity and Access Management (IAM) Solution for Two-factor Authentication Compliance
The Office of GSA Information Technology (OGIT) administers a publicly accessible electronic mailing list environment and has a security requirement to enforce two-factor authentication for users who log in to the Listserv web interface. By leveraging the PortalGuard IAM platform and its extensive experience working with legacy software applications, the BIO-key team provided a more efficient enrollment and credential management process for the Listserv environment. Listserv users will be prompted to enroll a second form of authentication using one of fifteen authentication options supported by PortalGuard, including finger and voice biometrics, SMS PINs, tokens, mobile authenticators, push authentication and smart cards.
“We are honored to partner with the GSA to support their security initiative for this important public facing communication application,” stated Mike DePasquale, Chairman and CEO, BIO-key. “Stringent security compliance requirements are mandatory for all government agencies because of the nature of the information and data that is entrusted to them. In this case, we enhanced their legacy Listserv application to provide secure, frictionless two-factor authentication with self-service capabilities for all end-users.”
About BIO-key International, Inc.(www.bio-key.com)BIO-key is revolutionizing authentication with biometric solutions that enable convenient and secure access to devices, information, applications, and high-value transactions. BIO-key’s software and hardware finger scanning solutions offer secure, user-friendly, and attractively- priced alternatives to passwords, PINs, tokens, and security cards, enabling enterprises and consumers to secure their networks and devices as well as their information in the cloud.
BIO-key Safe Harbor StatementAll statements contained in this press release other than statements of historical facts are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 (the "Act"). The words "estimate," "project," "intends," "expects," "anticipates," "believes" and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are made based on management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbor" provisions of the Act. These statements are not guarantees of future performance or events and are subject to risks and uncertainties that may cause actual results to differ materially from those included within or implied by such forward-looking statements. These risks and uncertainties include, without limitation, our history of losses and limited revenue; our ability to raise additional capital; our ability to protect our intellectual property; changes in business conditions; changes in our sales strategy and product development plans; changes in the marketplace; continued services of our executive management team; security breaches; competition in the biometric technology industry; market acceptance of biometric products generally and our products under development; our ability to execute and deliver on contracts in Africa; our ability to expand into Asia, Africa and other foreign markets; our ability to integrate the operations and personnel of PistolStar into our business; the duration and severity of the current coronavirus COVID-19 pandemic and its effect on our business operations, sales cycles, personnel, and the geographic markets in which we operate; delays in the development of products and statements of assumption underlying any of the foregoing as well as other factors set forth under the caption see "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2019 and other filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. Except as required by law, the Company undertakes no obligation to disclose any revision to these forward-looking statements whether as a result of new information, future events, or otherwise. Additionally, there may be other factors of which the Company is not currently aware that may affect matters discussed in forward-looking statements and may also cause actual results to differ materially from those discussed. In particular, the consequences of the coronavirus outbreak to economic conditions and the industry in general and the financial position and operating results of our company in particular have been material, are changing rapidly, and cannot be predicted.
Facebook – Corporate: BIO-key InternationalTwitter – Corporate: @BIOkeyIntlTwitter – Investors: @BIO_keyIRStockTwits: BIO_keyIR
Investor & Media ContactsWilliam Jones, David CollinsCatalyst IR212-924-9800[email protected]
Source: BIO-key International, Inc.