Identity verification company Incode Technologies has acquired Identiq Protocol, an Israeli startup that builds cryptographic tools for sharing fraud signals without exposing customer data.
The deal is part of a larger $100 million investment by Incode in privacy-preserving identity infrastructure. That money will go toward on-device processing, research into privacy-enhancing technologies, and engineering hires.
What makes Identiq interesting is its approach to a stubborn problem: how do you identify repeat fraudsters across networks without pooling sensitive customer data in one place? Their patented method lets organizations check whether an identity has been seen before by another institution without actually sharing customer records.
Incode also uses proprietary AI for verification, eliminating human reviewers, and on-device biometric processing for sensitive checks like age verification. That means personal data never leaves the user’s device.
The timing makes sense. Third-party vendor compromises accounted for 30% of U.S. data compromises last year. Incode holds SOC 2 Type 2 and ISO/IEC 27001 certifications to meet banking and government client requirements.
If the identity verification space is moving toward privacy-by-design, this acquisition puts Incode firmly in that camp.
