Socure, a leader in identity verification and fraud prevention, announced on Thursday it has secured $156 million in a strategic growth funding round, bringing its valuation to $5.2 billion. Based in Incline Village, Nevada, the company is also set to acquire Fravity, an AI startup located in Austin, as part of its efforts to automate the investigations associated with financial crime.
The investment was led by Summit Partners, incorporating both primary investment and a secondary tender offer for employees. Notable participants in the round included Goldman Sachs Alternatives, Wells Fargo, and DocuSign, though specific terms regarding the acquisition of Fravity remain undisclosed.
Since its founding in 2012, Socure has amassed more than $742 million in funding. It was valued at $4.5 billion during its Series E round in 2021. The company has not specified how much of the recent funding was primary versus secondary capital.
This funding round comes in response to rapid growth for Socure, coinciding with a significant increase in sophisticated fraud activities. The company reported $364 million in annual recurring revenue for the second quarter, reflecting a 63% increase from the prior year. During this quarter, it added 95 new customers including notable entities like Circle, Cox Automotive, MoneyLion, and Login.gov. Socure emphasizes its commitment to growing profitably.
Using artificial intelligence and machine learning, Socure aids banks, fintech companies, and government entities in identity verification, enabling them to swiftly approve genuine customers while thwarting fraudulent attempts. The company now serves over 3,000 enterprise customers, including 19 of the largest 20 banks in the U.S., along with hundreds of fintech firms and numerous public sector organizations.
According to Socure’s co-founder and CEO, Johnny Ayers, the rise of AI has brought both opportunities and challenges. Last year, AI-driven fraud saw an astonishing 8,000% uptick across its network, driven by advancements in generative AI and other technologies that streamline the creation of convincing fake identities and automate fraudulent attacks.
To combat these challenges, AI also offers solutions for the often time-consuming work of investigating flagged alerts and cases. Fravity's AI-driven platform is designed to automate fraud, risk, and compliance investigations. With the integration of Fravity’s technology into Socure’s RiskOS platform, specifically within the RiskOS_Agents component, the focus will initially be on streamlining watchlist screenings and know-your-business checks.
Socure and Fravity currently share several mutual enterprise customers who benefit from both products. Fravity claims to have reduced costs per case by 80%, accelerated resolution times by five times, and lowered false positives by as much as 70%.
This acquisition positions Socure to more effectively tap into the $71.1 billion financial crime investigation market, a significant issue for banks, where 53% of institutions spend over an hour reviewing each alert, and 37% manually sort through more than 40% of overall alerts.
As AI continues to evolve and contribute to the increasing complexity of fraud, Ayers asserts the importance of the identity verification layer in business operations. He notes that in an AI-driven global economy, there are two types of companies: those who leverage AI effectively and those who struggle against its implications.
Additionally, this investment comes after a period of substantial growth for Socure beyond its original focus on financial services. Recently, the company secured a federal contract worth $163 million over five years to provide identity-proofing technology for Login.gov, and is also expanding its international presence.
As of March 2026, Socure employed over 550 individuals, reflecting a growth of more than 100 employees in just a year.
