ID.me Raises $340M to Battle AI-Powered Fraud

The identity wars are heating up. Here’s how ID.me plans to stay ahead.

September 08, 2025

In the escalating arms race between fraudsters and cybersecurity innovators, ID.me just loaded its next salvo.

The Virginia-based digital identity verification platform has raised $340 million through a Series E funding round and a new credit facility—valuing the company at over $2 billion. The round was led by Ribbit Capital, with support from existing backers Ares Credit funds and Moonshots Capital, as well as new participants like Positive Sum.

But this isn’t just a victory lap—it’s fuel for a mission.

“Fraud is evolving at the speed of AI, and so are we,” said Blake Hall, Founder and CEO of ID.me.
“Secure identity is foundational to AI ecosystems that will depend on memory, context, and authentication, and ID.me is leading the charge.”

That charge? Building a secure, reusable digital identity infrastructure that can stand up to not just today’s fraud—but tomorrow’s as well.

AI-Powered Fraud is Getting Smarter—and Scarier

The stats are staggering. According to the Government Accountability Office, the U.S. lost up to $521 billion annually to fraud between 2018 and 2022. And the bad actors are getting more sophisticated—leveraging deepfakes, stolen credentials, and AI-generated phishing attacks.

Even more troubling: these aren’t just isolated cybercriminals. Criminal syndicates based in Russia, China, and Nigeria, along with North Korean hacking groups, have been implicated in targeting U.S. pandemic relief programs and private sector firms.

It’s no longer just a financial issue—it’s a national security threat.

From Defense to Offense: ID.me’s Expanding Role

ID.me has emerged as a frontline defender.

During the pandemic, seven U.S. states credited the company with preventing over $270 billion in unemployment fraud. More recently, the Virginia Employment Commission implemented ID.me and saw:

  • A 173% increase in digital claims

  • A 57% drop in call center volumes
    This dual outcome—greater accessibility for citizens and reduced strain on staff—highlights how scalable digital ID solutions can improve both security and service delivery.

In 2024 alone, ID.me:

  • Added 20.4 million new digital wallets

  • Facilitated 409 million logins, up 44% year-over-year

  • Reached a total of 152 million users, including 76 million verified to federal IAL2 standards

The company now works with:

  • 20 federal agencies

  • 45 state agencies

  • 70+ healthcare organizations

  • 600+ consumer brands

  • 500+ employers

What This Means for Fintech and Beyond

ID.me’s growth and funding underscore a broader trend: Digital identity is quickly becoming the bedrock of fintech infrastructure.

As artificial intelligence reshapes everything from lending to payments, verifiable, secure identity is no longer optional—it’s mission-critical.

Expect ID.me to:

  • Double down on AI-powered fraud detection

  • Push forward on privacy-preserving tech

  • Expand its role in both public and private sector ecosystems

Whether you're a fintech founder, policy leader, or investor, ID.me’s trajectory offers a preview of where identity—and security—are headed next.