Socure Raises $156M at $5.2B, Buying Fravity to Automate Fraud Reviews

Socure is using a $156 million growth investment and the acquisition of Fravity to move beyond flagging suspicious activity toward automating the fraud and compliance casework that follows. The financing values the identity-verification company at $5.2 billion; the price for Fravity was not disclosed.

Summit Partners led the investment, with Goldman Sachs Alternatives, Wells Fargo and Docusign among the participants. The transaction combines primary capital with a secondary tender offer for employees, though Socure did not say how much went to each side of that mix.

From decisioning to casework

Fravity’s software is due to become RiskOS_Agents inside Socure’s RiskOS platform. Its agents retrieve the documents an investigator would collect, conduct sanctions and watchlist screening, and draft a case summary for an analyst to review rather than assemble from scratch.

The initial targets are watchlist screening, ongoing monitoring and know-your-business checks. That is a narrower operational role than identity verification itself: Socure’s existing business uses AI and machine learning to help banks, fintechs and government agencies determine whether customers are who they claim to be, while Fravity is aimed at processing the investigations generated by risk and compliance queues.

A response to an expanding queue

The purchase addresses a workload that is still heavily manual. Liminal found that 53% of banks spend at least an hour reviewing each alert, while 37% manually review more than 40% of their alerts. Socure says it saw an 8,000% increase in AI-driven fraud across its network last year, as tools made fake identities and automated attacks easier to produce.

Socure and Fravity already had several enterprise customers using both products in production before the deal. Socure says those existing deployments cut cost per case by 80%, resolved cases five times faster and reduced false positives by as much as 70%. Those are company-supplied results from deployments before Fravity is incorporated into RiskOS.

Scale supports the wager

Socure reported $364 million in annual recurring revenue at the end of the second quarter, up 63% from a year earlier. It says it has more than 3,000 enterprise customers, including 19 of the 20 largest U.S. banks, more than 600 fintech companies and 160 public-sector organizations.

The new valuation comes after Socure raised more than $742 million in disclosed funding since its 2012 founding. Fravity is its third disclosed acquisition, following Berbix in 2023 and Effectiv in 2024. The central test is whether the pre-deal deployment gains carry into RiskOS_Agents at a broader customer base; Socure has disclosed neither Fravity’s price nor the split between fresh capital and employee liquidity.