Identity verification and fraud prevention company Socure announced Thursday that it raised $156 million in a strategic growth investment valuing it at $5.2 billion.
The Incline Village, Nevada-based company is also acquiring Austin-based agentic AI startup Fravity as it looks to automate more of the labor-intensive work involved in investigating financial crime.
Summit Partners led the investment, which includes both primary capital and a secondary tender offer for employees. Goldman Sachs Alternatives, Wells Fargo, Docusign and others also participated. Socure did not disclose the terms of its acquisition of Fravity.
With the latest funding, Socure has raised over $742 million in disclosed funding since its 2012 inception. It was previously valued at $4.5 billion at the time of its Series E round in 2021. The company did not break down how much of its raise was primary and secondary capital.
Rapid growth as fraud surges
The transactions come as Socure says it is seeing both rapid growth in its own business and a sharp rise in increasingly sophisticated fraud. The company is refreshingly open about its financials, telling Crunchbase News that it ended the second quarter with $364 million in annual recurring revenue, up 63% from a year earlier, and added 95 customers during the quarter, including Circle, Cox Automotive, MoneyLion and Login.gov. It also claims to be growing “profitably.”
Socure uses AI and machine learning to help banks, fintechs and government agencies verify identities so they can “approve real customers instantly while stopping fraud.”
It now has more than 3,000 enterprise customers. They include 19 of the 20 largest U.S. banks, more than 600 fintech companies, major sportsbook and prediction-market operators, and 160 public-sector organizations. Specifically, some of those customers include Capital One, Citi, Chime, Robinhood, DraftKings and Revolut. The company’s revenue model mixes usage- and transaction-based SaaS.
AI creates both an opportunity and a problem
Socure co-founder and CEO Johnny Ayers said AI is creating both an opportunity and a problem for the business. For example, Socure saw an 8,000% increase in AI-driven fraud across its network last year, according to the company, as generative AI and other tools make it easier to create convincing fake identities and automate attacks.
At the same time, AI could help address one of the more costly parts of fraud prevention: investigating the large number of cases and alerts that automated systems flag for human review.
That is where Fravity comes in.
Automating fraud investigations
Fravity has built an AI-native platform that uses agents to automate fraud, risk and compliance investigations. Its technology will be incorporated into Socure’s RiskOS platform as RiskOS_Agents, initially focusing on watchlist screening and monitoring and know-your-business checks.
Socure and Fravity already share several enterprise customers that use the two products together, according to Socure. Across its existing deployments, Fravity has reduced cost per case by 80%, sped up case resolution fivefold and cut false positives by as much as 70%, the companies say.
The acquisition puts Socure more directly into what identity intelligence company Liminal estimates is a $71.1 billion financial crime investigation market. The problem is particularly acute at banks, where 53% spend at least an hour reviewing each alert, and 37% manually review more than 40% of alerts, according to Liminal.
As AI increases the volume and sophistication of fraud, Ayers argues that the identity layer — determining whether people and increasingly AI agents are who or what they claim to be — is becoming more critical to doing business online.
“I believe there are two types of companies that matter in the AI-driven global economy: those that are AI-native, and those that fight the consequences of AI acceleration,” he said in a statement.
Expanding beyond financial services
The investment follows a period of expansion for Socure beyond its financial services roots. In May, the company won a five-year, $163 million federal contract to provide identity-proofing technology for Login.gov. It is also pushing further internationally.
Socure had more than 550 employees as of March 2026, more than 100 more than it had about a year ago, according to Ayers.
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Illustration: Dom Guzman
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