Baselayer secures $35m to combat AI agent fraud risks

Baselayer, an AI startup focused on financial identity verification, has raised $35 million in Series A funding led by M13, with participation from Picus Capital, Torch Capital, Afore Capital, and Socure. The round brings the company’s total funding to $40 million since its 2023 inception. Baselayer helps financial institutions assess fraud risk and verify businesses, with over 2,000 U.S. financial institutions using its technology. Co-founder Jonathan Awad highlighted the company’s role in preventing over $1 billion in fraud losses. Now, Baselayer is expanding to address AI agent fraud by launching its Agentic Identity Suite. The platform aims to verify whether AI agents are authorized to act on behalf of individuals or businesses. Awad emphasized the challenge of trusting AI agents, which can be created for single tasks and disappear quickly. Baselayer’s KYA system will issue credentials to agents, enabling verification by financial institutions and merchants. The company is collaborating with entities like FIS, Prove, and Socure to establish trust in AI agent interactions. Investor Karl Alomar noted that Baselayer’s existing data and relationships with financial institutions give it an edge in the emerging agentic economy. While no dominant standard exists for AI agent identity, Baselayer aims to become a foundational layer for trust in software-driven commerce. The company faces challenges in persuading partners to adopt its credential system, with financial institution relationships typically taking 12 to 18 months to establish.