@KyleG-Shopify
Our concern isn’t that Shopify or Stripe are acting maliciously, or that Stripe is an untrusted provider. The concern is the security architecture created by making government-ID and selfie verification mandatory for every Partner who needs to request collaborator access.
This changes the threat model substantially. Instead of protecting a Shopify account with revocable credentials such as passwords, MFA/passkeys, access scopes and merchant approval, Partners are now required to submit a government ID plus facial data to another system. Shopify’s announcement confirms that this is processed through Stripe. Stripe’s own Identity terms contemplate retention of submitted verification data rather than a system in which the ID simply disappears immediately after verification.
“It’s handled by a trusted third party” is not an answer to the breach concern. Third-party identity and verification systems have themselves been compromised. In November 2025, Veriff—an identity-verification provider—experienced an incident in which a Total Wireless customer notice says an unauthorized party obtained images of government-issued IDs, and potentially addresses and dates of birth, directly from Veriff’s systems.
In 2025, Discord disclosed that compromise of a third-party customer-service provider potentially exposed government-ID photos for approximately 70,000 users. Discord explicitly emphasized that its own systems were not breached—the problem was the trusted third party.
Also in 2025, the Tea app disclosed a breach involving approximately 13,000 verification selfies and photo IDs. This is particularly relevant because Tea had told users that verification selfies were deleted after review. The existence of old verification images in the breach is a good illustration of why a deletion promise does not eliminate the underlying architectural risk.
Coinbase disclosed another variation of the same problem in 2025: criminals recruited or bribed support personnel who had legitimate access to internal systems. The compromised information included government-ID images such as passports and driver’s licences. Encryption at rest does not solve an attack where an authorized person or compromised service account can legitimately retrieve the data.
And this is not merely historical. In September 2026, IDScan.net—whose business is ID scanning and identity verification—reported unauthorized access to customer information in its cloud environment, including names and government-issued identification numbers. Its investigation is still ongoing, so I would not speculate about the ultimate scope, but it is another current example showing that specialized identity providers are not outside the normal threat model.
So I would not claim that a Shopify/Stripe breach is inevitable. The point is simpler: collecting a copy of an ID and facial data creates a high-value dataset that did not previously need to exist for this workflow, and once it exists there is a non-zero probability of compromise through software vulnerabilities, credential theft, insiders, support systems, subprocessors, misconfiguration or human error.
The downside is unusually severe because these are not ordinary credentials. I can change a password, rotate an API key and revoke a session. I cannot issue myself a new face, date of birth or identity history after those attributes are leaked.
This is particularly difficult to justify for collaborator access because the merchant still has to approve the collaborator request. Shopify therefore should explain what measurable abuse this universal identity check prevents that cannot be addressed with less invasive controls such as strong MFA/passkeys, organization verification, risk-based step-up verification, short-lived and granular access permissions, merchant confirmation, anomaly detection, access expiry and audit logging.
The verification itself may reduce one category of fraud while simultaneously creating a new category of concentrated identity-data risk. The question is whether that trade-off is necessary and proportionate—not whether Stripe is a reputable company.