Axiad Raises $25 Million to Bolster ID Verification Offerings

Identity security firm Axiad has raised $25 million in a new funding round.

The financing, announced last week, will be used for product development, hiring, enhanced sales/marketing efforts and to help the company obtain Federal Risk and Authorization Management Program (FedRAMP) Authority to Operate.

“According to an IDSA [Identity Defined Security Alliance] survey, 91% of organizations experienced an identity-based attack in 2024, and while multifactor authentication (MFA) has been around for decades, most implementations are weak and do not provide true phishing resistance,” said David Canellos, CEO of Axiad.

“This latest funding round from Invictus further demonstrates its confidence in our mission in the identity security space, which is to enable enterprises and government organizations to deliver an identity-first zero-trust future through advanced authentication solutions, including phishing-resistant MFA, that will help better protect our rapidly growing customer base.”

The new funding comes as businesses around the world face rising cyberthreats, with 82% of large merchants reporting data and cyber breaches over the past year, according to the PYMNTS Intelligence’s “Fraud Management in Online Transactions.”

That report found a need for more robust anti-fraud strategies and enhanced cybersecurity measures to protect cross-border transactions.

“Outsourcing fraud prevention to specialized providers has proven effective, achieving a 32% reduction in failed payment rates compared to in-house efforts,” PYMNTS wrote recently.

“Although only 53% of merchants implement two-factor authentication at the transaction level, its use is crucial for minimizing payment failures. These findings underscore the benefits of using external expertise and adopting advanced security protocols to bolster fraud management and protect financial transactions.”

Merchants who have partnered with these providers reported a lower average failed payment rate of 8.5%, compared to 13% among those managing anti-fraud processes in-house.

“This 32% reduction highlights the advantages of using external expertise and advanced technology that may not be readily available or affordable for all businesses,” PYMNTS wrote.

Outsourcing lets merchants benefit from sophisticated tools and expertise, reducing operational burdens while improving fraud detection and prevention.

In a separate report last week, PYMNTS noted that recent cyber incidents like the mass CrowdStrike outage create opportunities for criminals, making it increasingly important for businesses to adopt a multifaceted approach to prepare for and mitigate scams arising from digital disruptions.