Investment company Corsair Capital has acquired a majority stake in the German IDnow identity verification platform.
The company announced the deal last week. The cost of this deal is still unknown. It is worth clarifying that the lack of official information is implied in the relevant context. At the same time, the media, citing anonymous insiders, reported that the value of the deal was $295 million.
IDnow was founded in 2014. This firm provides identity verification services for firms from various industries, including the financial products sector, telecommunications, travel, mobility, and gaming.
Through investment injections, Corsair Capitals aims to help IDnow grow by developing strong positions in various geographies and through future acquisitions. It is worth noting that Corsair Capitals is a long-time investor in the identity verification platform. The company injected $40 million into IDnow in 2019.
Raja Hadji-Touma and Edward Wertheim, partners at Corsair Capitals, said they are thrilled to expand their partnership with the identity verification platform. It was also noted that since their initial investment, they have witnessed IDnow build significant momentum and achieve impressive scale.
It is worth noting that the relevance of functional identity verification solutions has been growing recently. The corresponding dynamic is because algorithms for fraudsters’ activities are becoming more sophisticated. This process is the result of criminals using advanced technologies, including artificial intelligence. They leverage tactics ranging from high-tech botnet attacks to fraud attempts through the postal service using identities stolen in last year’s wave of data breaches.
The results of special industry research show that 40% of financial institutions in the United States experienced an increase in losses last year. In this case, financial losses related to fraud are implied. It is worth noting separately that in 2023, the mentioned indicator was recorded at the 29% mark. Also, the results of the specified research show that three-quarters of consumers would switch providers if they felt their banks’ fraud protections were insufficient.
As we have reported earlier, Banking Giants Warn New AI Risks.
