Comment by chezelenkoooo
3 hours ago
Any kind of lending facility, for example, is required, by law, to retain identity documents for an extended period of time - we're talking around five years _post_ account closure.
So most businesses are not permitted to just delete the data.
Back In The Day, if somewhere like a car hire agency wanted to record proof of identity they'd photocopy your driver's license on paper, and store it in a filing cabinet. The computer record of a customer's account would just say "driving license checked, on file at branch #1234"
Security-wise this comes with obvious downsides - but as protection against cyberattack, it's pretty much the gold standard.
A system abandoned decades ago? https://en.wikipedia.org/wiki/Gold_standard
https://en.wiktionary.org/wiki/gold_standard
Regulatory retention is a valid reason for some of this data to exist. It isn't a blanket justification for every intermediary in the verification chain to retain its own permanent copy. If anything, that makes minimizing the number of copies even more important.