Touch ID security
The fingerprint sensor is active only when the capacitive steel ring that surrounds the Home button detects the touch of a finger, which triggers the advanced imaging array to scan the finger and send the scan to the Secure Enclave.
The 88-by–88-pixel, 500-ppi raster scan is temporarily stored in encrypted memory within the Secure Enclave while being vectorized for analysis, and then it’s discarded after. The analysis utilizes subdermal ridge flow angle mapping, which is a lossy process that discards minutia data that would be required to reconstruct the user’s actual finger- print. The resulting map of nodes never leaves iPhone 5s, is stored without any identity information in an encrypted format that can only be read by the Secure Enclave, and is never sent to Apple or backed up to iCloud or iTunes.
How Touch ID unlocks iPhone 5s
On devices with an A7 processor, the Secure Enclave holds the cryptographic class keys for Data Protection. When a device locks, the keys for Data Protection class Complete are discarded, and files and keychain items in that class are inaccessible until the user unlocks the device by entering their passcode.
On iPhone 5s with Touch ID turned on, the keys are not discarded when the device locks; instead, they’re wrapped with a key that is given to the Touch ID subsystem. When a user attempts to unlock the device, if Touch ID recognizes the user’s finger- print, it provides the key for unwrapping the Data Protection keys and the device is unlocked. This process provides additional protection by requiring the Data Protection and Touch ID subsystems to cooperate in order to unlock the device.
The decrypted class keys are only held in memory, so they’re lost if the device is rebooted. Additionally, as previously described, the Secure Enclave will discard the keys after 48 hours or 5 failed Touch ID recognition attempts
Lots of other security tidbits for those inclined to give the .pdf a read through.