ID.me Secures $340 Million in Funding, Reaching $2 Billion Valuation to Combat AI-Driven Fraud

ID.me tops $2 billion valuation in latest fundraise amid push to combat AI-driven fraud

Sept 3 (Reuters) - ID.me said on Wednesday it had raised $340 million across its latest funding round, combined with a credit facility, led by investment firm Ribbit Capital, valuing the digital identity wallet at over $2 billion. The Series E round included participation from existing investors Ares Capital and Moonshots Capital, along with new investor Positive Sum. The funding would be targeted towards preventing AI-driven fraud. WHY IT'S IMPORTANT Despite macroeconomic uncertainties, private venture capital funding rose in 2025 as startups delayed their public offerings amid an abundant capital pool and higher valuations, with strong investor interest in artificial intelligence-driven companies. CONTEXT As cybercrime exploiting online platform vulnerabilities rises with advances such as AI, digital identity verification has become crucial, making companies like ID.me increasingly relevant. ID.me is a digital identity wallet that stores and manages personal information and credentials. It works with several U.S. government agencies, such as Veterans Affairs and Internal Revenue Service among others, to provide identity verification, according to their website. Seven states credited ID.me with preventing more than $270 billion in unemployment fraud during the pandemic. The financing will also help the company expand access to secure and reusable digital identity, it said. KEY QUOTES "Fraud is evolving at the speed of AI -- and so are we," said Blake Hall, Founder and CEO of ID.me. "As AI reshapes the economy and new fraud risks emerge, we believe ID.me's digital identity wallet will become even more essential in enabling secure connections between large organizations and their users, while also minimizing friction and improving the end-user experience," said John Clark, Ares Management. BY THE NUMBERS - The company added 20.4 million new wallets in 2024 - ID.me serves over 152 million users, which represent nearly 60% of U.S. adults Reporting by Pritam Biswas in Bengaluru; Editing by Vijay Kishore Our Standards: The Thomson Reuters Trust Principles., opens new tab

ID.me hits $2bn valuation on funding to tackle AI fraud

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community. The Series E was led by Ribbit Capital, with participation from Ares Credit funds, Moonshots Capital, and Positive Sum. ID.me is a digital identity wallet that stores and manages users' personal information, helping them to prove their ID online seamlessly across websites. The firm has secured deals with US government agencies and claims that seven states credited it with preventing more than $270 billion in unemployment fraud during the pandemic. In 2024 it added 20.4 million new wallets and now has 152 million users, representing nearly 60% of US adults. With fraudsters now weaponizing AI tools like deepfakes to exploit vulnerabilities faster than ever, the company says the latest funding will help it expand access to secure identity. Blake Hall, CEO, ID.me, says: "Fraud is evolving at the speed of AI -- and so are we. Secure identity is foundational to AI ecosystems that will depend on memory, context, and authentication, and ID.me is leading the charge. "This funding strengthens our ability to expand secure digital access, protect privacy, and innovate faster to stay ahead of criminal networks."

ID.me Raises $340 Million to Expand Digital Identity Solutions | PYMNTS.com

The latest financing values that company at over $2 billion, it said in a Wednesday press release. That valuation is up from the $1.8 billion at which ID.me was valued in November. ID.me said in the Wednesday release that it will use the new capital to continue its work to expand access to digital identity and to combat the growing threat of artificial intelligence-driven fraud. "Secure identity is foundational to AI ecosystems that will depend on memory, context and authentication, and ID.me is leading the charge," ID.me Founder and CEO Blake Hall said in the release. "This funding strengthens our ability to expand secure digital access, protect privacy and innovate faster to stay ahead of criminal networks." ID.me serves 152 million users -- nearly 62% of all U.S. adults -- as well as 20 federal agencies, 45 state agencies, 70 healthcare organizations, 500 employers and 600 consumer brands, according to the release. During 2024, the company added 20.4 million new digital wallets and powered 409 million successful logins, per the release. Justin Saslaw, general partner at Ribbit Capital, which led the Series E round, said in the release that identity will be the foundation of the AI revolution. "As AI agents become ubiquitous, trusted identity tokens will enable secure, seamless interactions between people, organizations and machines," Saslaw said. "ID.me has built one of the most advanced and widely adopted digital identity wallets in the world, giving it a durable advantage in creating and scaling the identity tokens that will power this new era." ID.me was valued at $1.8 billion following a November tender offer, up from $1.73 billion two years earlier. The PYMNTS Intelligence and Intellicheck collaboration "How FinTechs Are Fighting Identity Theft and Identity Fraud" found that fraudsters are leveraging AI-powered identity manipulation and other sophisticated tactics to commit financial crime. Identity-related issues comprise 42% of all suspicious activity encountered by financial institutions, underscoring the central role of identity in fraud attempts and the need for robust identity verification processes, according to the report.