ID.me Secures $340M to Combat AI Fraud, Bolster Digital Identity
September 6, 2025, 9:34 pm
ID.me, a leading digital identity platform, has secured $340 million in new funding. This Series E round and credit facility pushes its valuation past $2 billion. The investment strengthens its fight against rapidly evolving AI-driven fraud. It expands secure digital access for millions. The company’s technology protects government agencies and private enterprises. It streamlines user verification. ID.me prevents billions in fraud losses. It enhances efficiency across various sectors. The funds will fuel innovation. ID.me aims to stay ahead of sophisticated criminal networks. It will expand its reach to underserved populations. The platform is crucial for the future of secure digital interactions.
ID.me just secured a massive $340 million in new financing. This includes a Series E funding round and a credit facility. The investment propels the digital identity verification firm past a $2 billion valuation. This marks a significant milestone. It reinforces ID.me's position as a critical player. The capital will fuel its mission. It will combat the surging threat of AI-powered fraud.
Fraud is a national crisis. Its scale is staggering. Losses between 2018 and 2022 hit $521 billion annually. Organized criminal networks drive much of this damage. They operate globally. Actors from Russia, China, and Nigeria pose constant threats. North Korean groups now target U.S. companies. They exploit stolen identities. The rise of AI tools like deepfakes compounds the problem. Fraudsters leverage these to exploit vulnerabilities at scale. ID.me stands as a vital defense.
The company's impact is clear. During the pandemic, seven states credited ID.me. It helped prevent over $270 billion in unemployment fraud. Its technology proved highly effective. It streamlined access to critical benefits. It simultaneously reduced strain on government systems.
Operational improvements are evident. The Virginia Employment Commission adopted ID.me in 2024. Digital claims surged by 173%. Call center volume dropped by 57%. This demonstrates secure identity verification's power. It improves user experience. It boosts operational efficiency.
ID.me’s growth trajectory is remarkable. The company added 20.4 million new digital wallets in 2024 alone. That averages over 55,000 new users daily. It facilitated more than 409 million successful logins. This represents a 44% increase year-over-year. Such rapid expansion underscores the demand. Trusted identity solutions are essential in a digital world.
The platform's reach is extensive. It spans nearly 60% of the U.S. adult population. Over 76 million users are verified to federal IAL2 standards. ID.me integrates across 20 federal agencies. It serves 45 state agencies. Its utility extends further. Over 70 healthcare organizations use it. More than 600 consumer brands rely on it. Some 500 employers also leverage its services. This broad adoption highlights the platform's versatility. It serves public services and private enterprise.
ID.me offers a sophisticated software toolkit. This manages complex identity verification workflows. It removes the need for developers. They no longer write verification code from scratch. This saves significant development time. The core of its user interaction is the ID.me Wallet app. Users scan documents like passports or driver’s licenses. They use a smartphone camera. Advanced computer vision algorithms then check for signs of tampering. This ensures document authenticity.
Beyond basic verification, the Attribute Exchange feature excels. It verifies specific credentials. Individuals prove they are students, teachers, military members, or first responders. Enterprises use this. They confirm an individual is an employee. This secures internal applications. Retailers also benefit. They provide targeted discounts to verified groups. Some user data can even power personalized marketing offers. This expands utility beyond simple access.
Organizations can tailor security levels. They adjust verification difficulty. This depends on an application’s sensitivity. A hospital might demand two documents for database access. ID.me also supports multi-factor authentication (MFA). This adds layers of security.
The platform employs multiple methods to deter hackers. It analyzes technical data. This includes device and network information from each login request. ID.me also scans user activity patterns. It identifies anomalies. These could indicate bot activity. This proactive approach fortifies security.
Ribbit Capital led the latest funding round. Existing backers like Ares Credit funds and Moonshots Capital participated. New investors, including Positive Sum, also joined. These investments signal strong confidence. They recognize ID.me’s crucial role.
The new funding empowers ID.me on multiple fronts. The company will enhance its technology. It aims to stay ahead of increasingly sophisticated fraud tactics. It plans to expand access to secure identity verification. This will reach underserved populations. Building strategic partnerships is another priority. These collaborations will support digital transformation across industries.
AI continues to reshape the economy. It introduces novel risks. ID.me positions itself as a foundational layer. It ensures secure, frictionless interactions. These occur between individuals, institutions, and digital systems. Secure identity is paramount in AI ecosystems. It underpins memory, context, and authentication.
ID.me is leading this charge. This funding strengthens its ability. It expands secure digital access. It protects user privacy. It fosters faster innovation. This keeps it ahead of criminal networks. The company's digital identity wallet will become even more essential. It enables secure connections between large organizations and their users. It minimizes friction. It improves the end-user experience. ID.me stands ready for the future. It builds the identity tokens powering a new, AI-driven era.
ID.me just secured a massive $340 million in new financing. This includes a Series E funding round and a credit facility. The investment propels the digital identity verification firm past a $2 billion valuation. This marks a significant milestone. It reinforces ID.me's position as a critical player. The capital will fuel its mission. It will combat the surging threat of AI-powered fraud.
Fraud is a national crisis. Its scale is staggering. Losses between 2018 and 2022 hit $521 billion annually. Organized criminal networks drive much of this damage. They operate globally. Actors from Russia, China, and Nigeria pose constant threats. North Korean groups now target U.S. companies. They exploit stolen identities. The rise of AI tools like deepfakes compounds the problem. Fraudsters leverage these to exploit vulnerabilities at scale. ID.me stands as a vital defense.
The company's impact is clear. During the pandemic, seven states credited ID.me. It helped prevent over $270 billion in unemployment fraud. Its technology proved highly effective. It streamlined access to critical benefits. It simultaneously reduced strain on government systems.
Operational improvements are evident. The Virginia Employment Commission adopted ID.me in 2024. Digital claims surged by 173%. Call center volume dropped by 57%. This demonstrates secure identity verification's power. It improves user experience. It boosts operational efficiency.
ID.me’s growth trajectory is remarkable. The company added 20.4 million new digital wallets in 2024 alone. That averages over 55,000 new users daily. It facilitated more than 409 million successful logins. This represents a 44% increase year-over-year. Such rapid expansion underscores the demand. Trusted identity solutions are essential in a digital world.
The platform's reach is extensive. It spans nearly 60% of the U.S. adult population. Over 76 million users are verified to federal IAL2 standards. ID.me integrates across 20 federal agencies. It serves 45 state agencies. Its utility extends further. Over 70 healthcare organizations use it. More than 600 consumer brands rely on it. Some 500 employers also leverage its services. This broad adoption highlights the platform's versatility. It serves public services and private enterprise.
ID.me offers a sophisticated software toolkit. This manages complex identity verification workflows. It removes the need for developers. They no longer write verification code from scratch. This saves significant development time. The core of its user interaction is the ID.me Wallet app. Users scan documents like passports or driver’s licenses. They use a smartphone camera. Advanced computer vision algorithms then check for signs of tampering. This ensures document authenticity.
Beyond basic verification, the Attribute Exchange feature excels. It verifies specific credentials. Individuals prove they are students, teachers, military members, or first responders. Enterprises use this. They confirm an individual is an employee. This secures internal applications. Retailers also benefit. They provide targeted discounts to verified groups. Some user data can even power personalized marketing offers. This expands utility beyond simple access.
Organizations can tailor security levels. They adjust verification difficulty. This depends on an application’s sensitivity. A hospital might demand two documents for database access. ID.me also supports multi-factor authentication (MFA). This adds layers of security.
The platform employs multiple methods to deter hackers. It analyzes technical data. This includes device and network information from each login request. ID.me also scans user activity patterns. It identifies anomalies. These could indicate bot activity. This proactive approach fortifies security.
Ribbit Capital led the latest funding round. Existing backers like Ares Credit funds and Moonshots Capital participated. New investors, including Positive Sum, also joined. These investments signal strong confidence. They recognize ID.me’s crucial role.
The new funding empowers ID.me on multiple fronts. The company will enhance its technology. It aims to stay ahead of increasingly sophisticated fraud tactics. It plans to expand access to secure identity verification. This will reach underserved populations. Building strategic partnerships is another priority. These collaborations will support digital transformation across industries.
AI continues to reshape the economy. It introduces novel risks. ID.me positions itself as a foundational layer. It ensures secure, frictionless interactions. These occur between individuals, institutions, and digital systems. Secure identity is paramount in AI ecosystems. It underpins memory, context, and authentication.
ID.me is leading this charge. This funding strengthens its ability. It expands secure digital access. It protects user privacy. It fosters faster innovation. This keeps it ahead of criminal networks. The company's digital identity wallet will become even more essential. It enables secure connections between large organizations and their users. It minimizes friction. It improves the end-user experience. ID.me stands ready for the future. It builds the identity tokens powering a new, AI-driven era.