ID.me, a digital identity verification company based in Virginia has raised US$340 million through a Series E financing round and a recent credit facility.

The funding values the company at more than US$2 billion.

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.

The investment will support ID.me’s efforts to expand access to secure, reusable digital identity and to counter fraud driven by artificial intelligence.

Fraud has become both a financial and national security concern.

Between 2018 and 2022, the US government lost up to US$521 billion annually to fraud, according to the Government Accountability Office.

Criminal networks in Russia, China and Nigeria have been responsible for large-scale theft of pandemic relief funds, while North Korean groups have increasingly targeted US companies using stolen identities.

More recently, fraudsters have begun exploiting artificial intelligence tools such as deepfakes, accelerating the pace of attacks.

ID.me has played a role in addressing these risks.

Seven states credited the company with preventing more than US$270 billion in unemployment fraud during the pandemic.

In 2024, the Virginia Employment Commission introduced ID.me and reported a 173% increase in digital claims alongside a 57% reduction in call centre volumes, which improved access for claimants and reduced pressure on staff.

“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.”

In 2024, ID.me added 20.4 million new digital wallets, averaging more than 55,000 a day, and supported over 409 million logins, a 44% increase compared with the previous year.

The company reports that it now serves more than 152 million users, of whom 76 million are verified to federal IAL2 standards.

Its clients include 20 federal agencies, 45 state agencies, more than 70 healthcare organisations, over 600 consumer brands and more than 500 employers in the United States.

Featured image credit: Edited by Fintech News America, based on image by freepik