ID verification firm Socure valued at $4.5bn following $450m Series E round

ID verification and fraud prevention platform Socure has raised $450 million in a Series E funding round valuing the company at $4.5 billion.

Socure says identity fraud has been fueled by the pandemic

The latest fundraise comes just seven months after the company’s $100 million Series D round.

The Series E was led by Accel and T. Rowe Price and featured participation from two new investors, Bain Capital Ventures and Tiger Global, as well as existing investors Commerce Ventures, Scale Venture Partners and Sorenson Ventures.

Socure says identity fraud has been fueled by the pandemic as businesses and government agencies continue to digitise their operations.

The company uses predictive analytics alongside artificial intelligence (AI) and machine learning techniques to analyse data points such as email addresses, phone numbers, internet protocols and street addresses to verify identities for banks and other financial institutions.

The New York-based firm claims that its platform can achieve know your customer (KYC) auto-approval rates of up to 97%.

Socure says it uses a modularised application programming interface (API) to “maximise a company’s accuracy at sign-up and transaction” while capturing “more fraud, reducing false positives [and] decreasing manual reviews”.

The fintech says it will use the cash to develop new products, enter new markets including the public sector and hire more staff into its product, data science and engineering teams.