1Kosmos, an identity verification and authentication platform headquartered in New Jersey, has raised US$57 million in a series B round led by Forgepoint Capital and Origami’s Oquirrh Ventures.

The funding includes a US$10 million line of credit from Bridge Bank, bringing the company’s total funding to over US$72 million.

Investors in the round also include Carahsoft founder Craig Abod, NextEra Energy Ventures, Gula Tech Adventures, and the 1Kosmos management team.

The company said the new funds will advance product innovation, accelerate global expansion by scaling direct and channel sales across North America, EMEA, and APAC, and deepen technology integrations with leading IAM, CIAM, PAM, and zero trust platforms.

1Kosmos recently became the only full-service Kantara-certified credential service provider to achieve FedRAMP High authorization for its platform.

🔗 Source: 1Kosmos

🧠 Food for thought

1️⃣ Identity verification market surges as AI-powered fraud reaches crisis levels

1Kosmos’s $57 million funding comes at a time when the identity verification market is experiencing significant growth driven by escalating fraud threats.

The global identity verification market is projected to grow from 75 billion verifications in 2024 to 86 billion in 2025, with revenue expected to reach $21.8 billion by 2028, doubling from $10.9 billion in 20231.

This growth is fueled by an increase in AI-enabled fraud, with identity fraud cases surging 12% annually since 2020 and fraudsters now able to create fake IDs for as little as $151.

The financial sector alone saw a rise in deepfake incidents in 2023, demonstrating how AI tools have made sophisticated impersonation attacks more accessible to criminals1.

With cybercrime projected to cost $10.5 trillion annually by 2025, enterprises are seeking solutions that can stay ahead of rapidly evolving threats2.

2️⃣ Biometric authentication gains mainstream acceptance as password vulnerabilities become clear

1Kosmos’s focus on passwordless authentication aligns with a significant shift in consumer preferences and enterprise security strategies.

Nearly half of U.S. consumers—49%—now favor biometric verification methods over traditional passwords, reflecting growing awareness of password-based vulnerabilities1.