Incode Acquires Identiq for US$100 Million to Scale Fraud Defense

Incode acquires Identiq for US$100 million, reflecting a broader shift toward privacy-by-design identity infrastructure. The merge will enable organizations to collaborate against AI-driven fraud without exposing customer data. 

Incode Technologies completed the acquisition of Identiq as part of a US$100 million investment program aimed at strengthening a privacy-centric identity infrastructure designed for fraud prevention. The transaction will add cryptographic technology to allow organizations to share fraud signals without exposing customers' sensitive data, addressing a growing challenge for financial institutions, telecommunications companies, fintechs, and digital platforms that must detect coordinated fraud while complying with increasingly strict privacy requirements. 

The move comes as identity verification providers face a rapid increase in AI-driven fraud attempts. According to Incode, the company has processed more than 7 billion identity verifications globally and observed that agentic fraud represented 3% of detected attempts in 2024. The company says that figure rose to 40% during the first quarter of 2026 and estimates it could exceed 90% within the next 18 months. These figures were disclosed by Incode as part of the acquisition announcement.

Privacy and Fraud Prevention Converge

Incode framed the acquisition as an architectural decision rather than a product expansion. "We have always believed that privacy and fraud prevention are not a trade-off but part of the same problem, which can only be solved jointly," says Ricardo Amper, Founder and CEO, Incode.

The acquisition integrates Identiq's peer-to-peer cryptographic collaboration technology into Incode's identity platform. According to the companies, the approach enables institutions to identify recurring fraud patterns across a network without creating centralized data repositories or transferring personally identifiable information between participants.

That capability is becoming increasingly relevant as organizations seek collaborative fraud detection models that do not introduce additional data-sharing risks. Incode says its privacy strategy is built on three architectural principles that predate the acquisition:

• AI-driven identity verification without human review: The company says its verification, liveness detection, and document-matching systems are designed to minimize human access to biometric and identity data.
• On-device processing: Incode says newer facial age estimation and identity verification products perform biometric processing directly on users' devices, reducing the need to transmit sensitive data to external systems.
• Private fraud collaboration: The Identiq acquisition adds a network layer that allows institutions to exchange fraud intelligence signals without exposing customer records.

This combination reflects a broader industry shift toward "privacy by design" architectures, particularly in sectors where identity verification has become a core operational requirement.

The Market Is Paying Attention

The acquisition takes place amid rising concern over data breaches and supply-chain exposure. Incode cited the 2025 Annual Data Breach Report from the Identity Theft Resource Center, which reported 3,322 data compromise incidents in the United States during the last year, representing a 79% increase over five years. The same report found that supply-chain-related breaches doubled during that period.

For enterprises, the challenge is increasingly twofold: fraudsters collaborate across institutional boundaries, while defenders often operate within isolated data environments. Traditional anti-fraud collaboration models frequently rely on centralized data aggregation, which can create additional attack surfaces and regulatory concerns.

Incode positions the Identiq integration as an alternative to that model. Rather than centralizing customer information, participating organizations would exchange cryptographically protected fraud indicators.

A Decade of Development

According to the announcement, Identiq spent nearly a decade developing its privacy-enhancing technology and invested more than US$50 million in the effort. The company focused specifically on enabling fraud collaboration without requiring organizations to relinquish control over customer data.

"All institutions shared the same concern: how to fight fraud together without losing control of customer data. Identiq built the answer to that question," says Itay Levy, Co-Founder and CEO,  Identiq. Once integrated into Incode's platform, the technology is expected to add network-based fraud intelligence capabilities to billions of identity verification events annually. 

Beyond the acquisition itself, Incode highlighted several compliance frameworks that support its broader privacy strategy, including SOC 2 Type 2, ISO/IEC 27001, HIPAA compliance attestation, FedRAMP Ready, the Age Check Certification Scheme, and the Kantara IAL2 Component Services trust mark.

Those certifications are particularly relevant for organizations operating in regulated sectors such as banking, healthcare, telecommunications, and government services, where identity verification systems must meet both security and privacy requirements.

Incode says the broader US$100 million investment program will fund additional on-device processing capabilities, privacy-focused research and development, engineering expansion, and international growth.

The company was founded in San Francisco in 2015 and supports more than 7.1 billion trust checks and more than 400 million identity profiles worldwide. Incode also serves eight of the 10 largest US banks, eight of the nine largest US telecommunications companies, several global neobanks, and major online marketplaces.