ID.me Achieves $2 Billion Valuation with New Funding to Combat AI Fraud

ID.me, a digital identity wallet, has reached a valuation of $2 billion following a successful Series E funding round. This round, led by Ribbit Capital, also saw participation from Ares Credit, Moonshots Capital, and Positive Sum. The company focuses on managing and storing users’ personal information, enabling them to verify their identities seamlessly across various online platforms.

The firm has established partnerships with multiple US government agencies and claims that its technology has been instrumental in preventing over $270 billion in unemployment fraud during the COVID-19 pandemic, credited by seven states. In 2024, ID.me reported the addition of 20.4 million new wallets, bringing its total user base to 152 million, which represents nearly 60% of US adults.

ID.me is addressing the growing threat of fraud as malicious actors increasingly leverage artificial intelligence tools, such as deepfakes, to exploit vulnerabilities more rapidly. The latest funding will allow the company to enhance access to secure identity solutions, which are becoming crucial in the evolving digital landscape.

CEO Emphasizes the Need for Secure Identity

According to Blake Hall, CEO of ID.me, the nature of fraud is evolving at a pace comparable to advancements in AI technology. Hall stated, “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.”

He further emphasized that this funding will strengthen the company’s ability to provide secure digital access, safeguard privacy, and foster innovation to stay ahead of criminal networks. As organizations increasingly rely on digital solutions, the demand for secure identity verification is expected to grow, positioning ID.me at the forefront of this critical sector.

The company’s rapid growth and significant funding underscore the rising importance of identity management in a world where digital interactions are commonplace. As fraud tactics become more sophisticated, ID.me’s commitment to enhancing security measures will play a crucial role in protecting users and institutions alike.