Incode Acquires AuthenticID for AI-Driven Fraud

Identity solutions firm Incode Technologies is acquiring fraud detection provider AuthenticID.

The deal, according to a Tuesday (Aug. 19) news release, is aimed at tapping into a digital identity market projected to reach $116 billion by 2027.

“In the age of synthetic fraud, AI impersonation, and Agentic AI, verifying human identity has become the foundation of digital trust,” Ricardo Amper, founder and CEO of Incode, said in the release.

“Together with AuthenticID, we’re hardening the front line against these threats, so every enterprise can trust every interaction.”

According to the release, the acquisition marries Incode’s artificial intelligence (AI) innovations — such as advanced neural networks and large visual language models that can spot and prevent identity fraud in real time — with AuthenticID expertise in “regulated, high-volume environments.”

“The combined entity will deliver innovative, proven technology solutions to combat the most advanced AI threats,” the release added. “These threats include Gen AI toolkits that synthesize deepfakes –photoreal faces and voices—in real time, leading to a 300% year over year jump in account-opening fraud.”

The release also notes that the two companies, collectively, processed more than 4.1 billion identity checks in 2024, serve 8 of the 10 biggest banks in the U.S., and protect 8 of the 9 biggest North American telecoms.

AuthenticID is joining Incode at a time when the rise of agentic AI has made identity verification more important than ever, as covered here recently.

“Distinguishing legitimate transactions from increasingly sophisticated fraud attempts places FinTech companies, with their digital-first infrastructure and seamless consumer experiences, at the vanguard of the ongoing battle against identity theft and financial deception,” PYMNTS wrote.

The PYMNTS Intelligence report, “How FinTechs Are Fighting Identity Theft and Identity Fraud,” explores the challenges faced by digital financial entities in fighting fraud.

The scope of the issue is considerable: Among the suspicious activities encountered by financial institutions (FIs), 42% is related to identity fraud, with dark web ID data dumps and advanced AI tools helping illicit actors carry out their schemes.

Around one-third of FinTechs report recently suffering fraud, reflecting a broader upswing seen in the financial industry where American FIs fraud losses jumped by approximately 65%, rising to an average of $3.8 million lost last year.

“The human and financial toll on consumers is substantial, with 1 in 5 individuals who used a P2P platform and lost money to financial exploitation reporting losing more than $5,000,” PYMNTS added.