Article

Locksmiths beware: New kiosks cut digitally-stored copies of keys

The kiosks are rolling out in New York City and include Coinstar's founder as an investor.

June 25, 2013

A New York-based startup has developed a kiosk alternative to calling a locksmith. The KeyMe kiosk, launched in 7-Eleven stores around Manhattan, provides customers with 24-hour access to key-cutting templates that they have digitally stored within the kiosk.

Storing the digital key is offered as a free service, while creating a key comes in at a cost of $19.99. But in an article in the New York Daily News, KeyMe's founder and CEO Greg Marsh said the cost to re-create a lost key at the kiosk is far less than the average fee charged by an emergency locksmith.

"Three million people get locked out annually in New York City," Marsh said in the article. "Most call an emergency locksmith and, on average, pay $150. I wanted to come up with a better solution."

The kiosk also offers on-the-spot duplicates created from physical keys for $3.49 for a basic brass key and $5.99 for a decorative key.

Is it safe?

To ensure security, KeyMe said it uses the most advanced level of encryption, requires fingerprint authentication for account login, and employs multiple additional security measures.

According to the company's website, those additional measures include an extensive credit card authentication and confirmation to create an account, as well as real-time account activity updates via email.

The service does not store addresses or any other data that could be used to match key information with a location, according to the news release on the announcement.

But several reader comments in the New York Daily News article point out concerns over whether or not the kiosk's security measures are fully criminal-proof. One reader, who identified themselves as DO MO, was skeptical about the biometric fingerprint reader.

"Fingerprint authentication can be defeated with scotch tape and someone stealing your shot glass from the bar where you left your keys," they wrote in the comment.

Another reader, Frank2K13, focused on the potential for the kiosks to be hacked, writing, "Good idea in theory, but I don't know if I would trust it. For every computer there is a hacker."

The next Coinstar?

Security concerns aside, KeyMe is backed by big names with big hopes. Since launching KeyMe last year, Marsh has raised $2.3 million in funding and its investors include Battery Ventures, Coinstar founder Jens Molbak and Virgin Mobile co-founder Amol Sarva, according to the New York Daily News report.

Jens Molbak said the kiosk is an innovative approach to solving a simple problem.

"KeyMe provides useful solutions to the common problem of key duplication through its unique, self-service offering," said Molbak. "[It is] also bringing much needed innovation to the locksmith industry ... KeyMe is very similar to Coinstar and I am delighted to be involved with the company as a board member and investor."

Angleton, Texas-based Benchmark Electronics Inc. will manufacture the KeyMe kiosks. According to KeyMe's CEO Marsh, it was Benchmark's extensive knowledge in automation, robotics and precision cutting that furthered the development of the kiosk. 

"We are pleased to support KeyMe in the design and manufacture of their groundbreaking KeyMe Kiosks," said Mark Troutman, Benchmark's VP of U.S. Design Engineering. "Benchmark is excited to utilize our core competency in integrating complex technologies to make this product a reality."

The first two kiosks are active in stores at 1594 York Ave. and 224 5th Ave. Another three will be installed this week at 368 8th Ave., 676 Amsterdam Ave. and 351 Bowery St.

Read more about vending kiosks.