ID Analytics, a San Diego, Calif. company that seeks to detect and prevent identity fraud before it happens, said it has has closed $20 million in a third round of financing.

The round was led by Investor Growth Capital, and included existing investors Canaan Partners, Trinity Ventures and Mission Ventures. The company has now raised more than $45 million in funding.

The five year old company says its clients — companies in the financial services, retail, telecom and healthcare sectors, as well as government agencies — have have experienced, on average, a 30 to 40 percent decrease in identity fraud.

The company screens things like applications for credit, new account openings, check payments, electronic funds transfers and non-monetary transactions such as a change-of-address or a request for convenience checks.

Update: This sector is hot. The investment follows the second-round funding of LifeLock a couple of weeks ago with $6.9 million from Kleiner Perkins Caufield & Byers and Bessemer Venture Partners. That Phoenix company reportedly raised money at a significant $40 million valuation (scroll down). And as VentureWire points out (sub required), London-based Garlik raised a $12 million second round from 3i Group PLC and Doughty Hanson Technology Ventures, also about two weeks ago.