ID.me has closed a significant $340 million funding round as the digital identity platform battles an escalating wave of AI-powered fraud attacks. The company, which serves over 152 million users, announced the Series E financing today alongside a recent credit facility, pushing its valuation beyond $2 billion.
Ribbit Capital led the Series E round, with backing from existing investors Ares Credit funds and Moonshots Capital. New investor Positive Sum also participated in the funding, which will fuel ID.me's expansion of secure digital identity services and its fight against sophisticated fraud schemes.
Fraud has become both a financial disaster and a national security emergency. Government data shows the U.S. lost up to $521 billion annually to fraud between 2018 and 2022, according to the Government Accountability Office. Criminal organizations based in Russia, China, and Nigeria have stolen billions in pandemic relief funds, while North Korean actors increasingly target American companies using stolen identities.
The threat has intensified as fraudsters adopt artificial intelligence tools. Deepfakes and other AI technologies allow criminals to exploit system vulnerabilities faster than traditional methods. This arms race demands equally sophisticated defense systems that can deploy rapidly across multiple platforms.
The new capital will accelerate ID.me's mission to provide secure, reusable digital identity verification. The company plans to expand access to its services while developing new AI-powered security measures to stay ahead of criminal networks.
ID.me's track record demonstrates the urgent need for these solutions. Seven states have credited the platform with preventing more than $270 billion in unemployment fraud during the pandemic. Virginia's Employment Commission saw digital claims jump 173% after implementing ID.me in 2024, while call center volume dropped 57%.
Founded by Blake Hall, ID.me has established itself as a trusted digital wallet provider across government and private sectors. The platform added 20.4 million new wallets in 2024 alone, averaging over 55,000 new users daily. Total successful logins reached 409 million last year, marking a 44% increase from the previous year.
The company's reach spans nearly 60% of U.S. adults, with 76 million users verified to federal IAL2 standards. ID.me serves 20 federal agencies, 45 state agencies, 70+ healthcare organizations, 600+ consumer brands, and 500+ U.S. employers.
"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. This funding strengthens our ability to expand secure digital access, protect privacy, and innovate faster to stay ahead of criminal networks."
Ribbit Capital sees ID.me as positioned for the next phase of AI development, where identity verification becomes central to secure interactions. The investment firm believes digital identity tokens will enable safe connections between people, organizations, and AI systems.
"We believe the AI revolution will reshape the global economy, and identity will be its foundation," said Justin Saslaw, General Partner at Ribbit Capital. "As AI agents become ubiquitous, trusted identity tokens will enable secure, seamless interactions between people, organizations, and machines. ID.me has built one of the most advanced and widely adopted digital identity wallets in the world, giving it a durable advantage in creating and scaling the identity tokens that will power this new era. We're excited to partner with Blake and the ID.me team as they expand their leadership in the token-driven AI economy."
Ares Management highlighted the platform's role in connecting organizations with users while reducing friction and improving security. John Clark of Ares Management noted the growing importance of digital identity as AI transforms the economy and new fraud risks emerge.
"As AI reshapes the economy and new fraud risks emerge, we believe ID.me's digital identity wallet will become even more essential in enabling secure connections between large organizations and their users, while also minimizing friction and improving the end-user experience," said John Clark of Ares Management. "Ares is proud to continue supporting ID.me in its next phase of growth."
