Digital identity verification provider ID.me has secured $340 million in Series E funding and credit facilities, reaching a valuation exceeding $2 billion. The funding round, which brings ID.me’s total funding to approximately $1.1 billion, was led by Ribbit Capital with participation from existing investors Ares Credit Funds and Moonshots Capital, along with new investor Positive Sum. The latest round follows the company’s $132 million Series D funding raised previously.
The company plans to use the funding to expand its secure, reusable digital identity solutions and enhance its capabilities to combat AI-driven fraud. According to the Government Accountability Office, such fraud costs the U.S. government up to $521 billion annually, with fraudsters increasingly employing stolen identities and AI technologies like deepfakes to exploit vulnerabilities. The rise of AI-generated synthetic identities has become particularly concerning for authentication systems.
ID.me currently maintains a user base of 152 million individuals, representing approximately 60 to 62 percent of U.S. adults. The company’s verification services are integrated with 20 federal agencies, 45 states, 70 healthcare organizations, 500 employers, and 600 consumer brands. The extensive reach includes significant partnerships with government agencies, including the Department of Veterans Affairs, which recently announced plans to implement ID.me authentication for online services in 2025.
During the pandemic, ID.me demonstrated its effectiveness by preventing over $270 billion in unemployment fraud across seven states. The success builds on the company’s earlier efforts to help state labor departments manage unemployment claim backlogs while maintaining security. A notable example of its impact can be seen in the Virginia Employment Commission’s implementation, which resulted in a 173 percent increase in digital claims while reducing call center volume by 57 percent.
“Secure identity is foundational to AI ecosystems that will depend on memory, context and authentication, and ID.me is leading the charge,” said Blake Hall, Founder and CEO of ID.me. “This funding strengthens our ability to expand secure digital access, protect privacy and innovate faster to stay ahead of criminal networks.”
The investment reflects growing industry momentum toward enhanced digital identity verification solutions addressing fraud, compliance, and digital service delivery challenges. The trend comes as major technology companies are increasingly pushing for stronger authentication methods, including mandatory multi-factor authentication and passwordless solutions.
Sources: Finovate, IDTechWire, PYMNTS, PR Newswire
