ID.me Secures $340 Million to Advance Digital Identity and Combat AI Fraud
ID.me, a digital identity verification company based in McLean, Virginia, has recently announced the successful completion of a Series E funding round, securing $340 million to bolster its mission in fighting online fraud and expanding its secure digital identity services. Trusted by over 152 million users, ID.me has rapidly made a name for itself as a leader in the digital identity sector, aiming to facilitate secure, seamless interactions online.
The Series E round, which elevates the company’s valuation beyond $2 billion, was spearheaded by Ribbit Capital with participation from existing investors Ares Credit Funds and Moonshots Capital, alongside new investors such as Positive Sum. This significant influx of capital will both accelerate ID.me’s efforts in securing user identities and help combat the rising tide of AI-driven fraud that has emerged as a serious threat to both financial stability and national security.
Fraud is reportedly costing the U.S. government upwards of $521 billion annually, particularly exacerbated during the COVID-19 pandemic, when organized crime syndicates exploited vulnerabilities to siphon off resources intended for public assistance. Countries like Russia, China, and Nigeria are known to have capitalized on such opportunities, necessitating advanced countermeasures to fight back against their tactics, which increasingly involve the use of deepfake technology and artificial intelligence tools. "Defeating them requires equally advanced, rapidly deployed solutions," said Blake Hall, the Founder and CEO of ID.me.
During the pandemic, ID.me was credited with preventing more than $270 billion in unemployment fraud across seven states. The Virginia Employment Commission, which adopted ID.me in 2024, reported a remarkable 173% increase in digital claims while decreasing call center volume by 57%. This streamlining enabled a better experience for claimants and significantly reduced the operational burden on the agency.
In Hall’s view, the challenges posed by fraudsters are evolving at a pace facilitated by AI innovations. Thus, ID.me must continuously adapt to meet these challenges head-on. The organization's latest funding will empower it to innovate faster, protect user privacy, and improve secure access to digital identities. Hall emphasized, "Secure identity is foundational to AI ecosystems that will depend on memory, context, and authentication, and ID.me is leading the charge."
The need for trusted digital identities has only grown in recent years, as ID.me continues to demonstrate its effectiveness. In 2024, the company added an astonishing 20.4 million new wallets, averaging more than 55,000 new users per day, and facilitated over 409 million successful logins. This marks a 44% increase compared to the previous year, solidifying ID.me's status as a vital tool for navigating the complexities of digital interactions.
Not only does ID.me cater to individual users, but it also serves various substantial domains in the U.S., including 20 federal agencies, 45 state agencies, and over 70 healthcare organizations. The company’s technology adheres to the government’s federal authentication standards and is recognized by the Kantara Initiative as an approved credential service provider.
“The AI revolution will reshape the global economy, and identity will be its foundation,” stated Justin Saslaw, a General Partner at Ribbit Capital. He lauded ID.me for building an advanced digital identity wallet that positions it favorably to create and scale the identity tokens necessary for the emerging AI-driven economy.
As the economic landscape shifts and fraud threats become more sophisticated, ID.me remains committed to its mission of simplifying identity verification for individuals while fostering secure interactions online. The company stands firm on its promise of “No Identity Left Behind,” ensuring everyone can enjoy the benefits of a secure digital identity in a world increasingly reliant on technology. With this financial backing, ID.me is poised to lead the charge against AI-driven fraud while expanding access to its services for millions more users. To learn more, visit ID.me's website.
The Series E round, which elevates the company’s valuation beyond $2 billion, was spearheaded by Ribbit Capital with participation from existing investors Ares Credit Funds and Moonshots Capital, alongside new investors such as Positive Sum. This significant influx of capital will both accelerate ID.me’s efforts in securing user identities and help combat the rising tide of AI-driven fraud that has emerged as a serious threat to both financial stability and national security.
Fraud is reportedly costing the U.S. government upwards of $521 billion annually, particularly exacerbated during the COVID-19 pandemic, when organized crime syndicates exploited vulnerabilities to siphon off resources intended for public assistance. Countries like Russia, China, and Nigeria are known to have capitalized on such opportunities, necessitating advanced countermeasures to fight back against their tactics, which increasingly involve the use of deepfake technology and artificial intelligence tools. "Defeating them requires equally advanced, rapidly deployed solutions," said Blake Hall, the Founder and CEO of ID.me.
During the pandemic, ID.me was credited with preventing more than $270 billion in unemployment fraud across seven states. The Virginia Employment Commission, which adopted ID.me in 2024, reported a remarkable 173% increase in digital claims while decreasing call center volume by 57%. This streamlining enabled a better experience for claimants and significantly reduced the operational burden on the agency.
In Hall’s view, the challenges posed by fraudsters are evolving at a pace facilitated by AI innovations. Thus, ID.me must continuously adapt to meet these challenges head-on. The organization's latest funding will empower it to innovate faster, protect user privacy, and improve secure access to digital identities. Hall emphasized, "Secure identity is foundational to AI ecosystems that will depend on memory, context, and authentication, and ID.me is leading the charge."
The need for trusted digital identities has only grown in recent years, as ID.me continues to demonstrate its effectiveness. In 2024, the company added an astonishing 20.4 million new wallets, averaging more than 55,000 new users per day, and facilitated over 409 million successful logins. This marks a 44% increase compared to the previous year, solidifying ID.me's status as a vital tool for navigating the complexities of digital interactions.
Not only does ID.me cater to individual users, but it also serves various substantial domains in the U.S., including 20 federal agencies, 45 state agencies, and over 70 healthcare organizations. The company’s technology adheres to the government’s federal authentication standards and is recognized by the Kantara Initiative as an approved credential service provider.
“The AI revolution will reshape the global economy, and identity will be its foundation,” stated Justin Saslaw, a General Partner at Ribbit Capital. He lauded ID.me for building an advanced digital identity wallet that positions it favorably to create and scale the identity tokens necessary for the emerging AI-driven economy.
As the economic landscape shifts and fraud threats become more sophisticated, ID.me remains committed to its mission of simplifying identity verification for individuals while fostering secure interactions online. The company stands firm on its promise of “No Identity Left Behind,” ensuring everyone can enjoy the benefits of a secure digital identity in a world increasingly reliant on technology. With this financial backing, ID.me is poised to lead the charge against AI-driven fraud while expanding access to its services for millions more users. To learn more, visit ID.me's website.
Topics Consumer Technology）
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