ID.me Raises $340M, Tops $2B Valuation to Combat AI-Driven Fraud

ID.me, a digital identity wallet company, has raised $340 million in its latest funding round led by Ribbit Capital, boosting its valuation to over $2 billion. The company plans to use the new capital to expand access to its digital identity solutions and combat the rising threat of AI-driven fraud. Serving over 152 million users, including 20 federal agencies, 45 state agencies, and numerous healthcare organizations, ID.me has played a critical role in preventing more than $270 billion in unemployment fraud during the pandemic. The startup's technology meets federal authentication standards and provides streamlined, secure identity verification across multiple sectors. Industry leaders emphasize ID.me's pivotal role in enabling trusted digital identities essential for secure interactions in an AI-driven economy. The funding also reflects broader investor interest in AI-related security innovations amid increased cybercrime exploiting online vulnerabilities.