VeriChip Corporation, the much-hated purveyor of the VeriChip human ID implant, is airing its dirty laundry this week. This is not by choice, mind you, but because the Securities and Exchange Commission (SEC) required the company to disclose its "risk factors" prior to launching its initial public offering of stock (IPO) Friday.
The company lays out nearly 20 pages of risk factors in its Form S-1 Registration Statement, a required document for the IPO. But what the company failed to reveal in its filing may be even more eye-opening, say CASPIAN privacy advocates Dr. Katherine Albrecht and Liz McIntyre. The pair, authors of the "Spychips" series of books, have been vocal critics of VeriChip, dogging the company in recent years and facing down its senior executives on radio and national television.
"Potential investors should be told how a hacker can simply walk by a chipped person and clone his or her VeriChip signal, a threat demonstrated by security researcher Jonathan Westhues months ago," says McIntyre, who is a former federal bank examiner.