ID.me has secured USD 340 million in Series E funding, valuing the company at over USD 2 billion. The funds will support expanding secure digital access and combating AI-driven fraud.
According to Reuters, the Series E round was led by Ribbit Capital, with participation from existing investors Ares Credit Funds and Moonshots Capital, along with new investors including Positive Sum. This funding will accelerate ID.me’s efforts to expand access to secure, reusable digital identities and prevent AI-driven fraud.
Tackling issues related to fraud
Fraud is both a financial and national security crisis. Between 2018 and 2022, the US government lost up to USD 521 billion annually to fraud, according to the GAO. Fraudsters are now weaponising AI tools such as deepfakes to exploit vulnerabilities faster than ever. Defeating them requires equally advanced, rapidly deployed solutions.
ID.me has formed partnerships with various US government agencies, including Veterans Affairs and the Internal Revenue Service. Additionally, the company’s role in fraud prevention has been significant, with seven states crediting ID.me for stopping more than USD 270 billion in unemployment fraud during the pandemic.
Consumers can use an app called the ID.me Wallet to interact with the platform. It can scan passports, driver’s licenses, and other personal documents with a smartphone’s camera. ID.me employs computer vision algorithms to detect signs of tampering.
According to the company, its platform uses several different methods to prevent hackers from accessing customer records. ID.me analyses technical data about the device and network from which each login request is made. Additionally, the platform monitors user activity patterns for anomalies that suggest a bot might be generating the traffic.
This foundation round follows the one from January 2025, when ID.me secured USD 275 million from Ares Management to accelerate the company’s mission to revolutionise secure digital identity verification, expanding access while ensuring privacy protection and fraud prevention, according to the official press release.
