Financial AI startup Casap raises $56 million to help banks stop an explosion of customer fraud
Source: Fortune ·
A social media-driven epidemic of dishonesty means card companies are facing far more first party fraud.
From the source
Credit card fraud is hardly new, but the nature of that fraud is undergoing a major shift. In the past, nearly all scams were carried out by third party bad guys, but today it is cardholders themselves who account for nearly a third of fraudulent transactions. This shift has been driven by AI tools that make it easier for people to dispute charges, but also by social media groups that share tips for carrying out fraud in the guise of getting “free stuff.” “It comes back to people thinking ‘this is a victimless crime, banks have a lot of money and I need money’, so people tell what they think are white lies,” says Shanthi Shanmugam, the CEO and co-founder of a startup called Casap whose AI suite helps banks and card companies handle disputes and chargebacks. On Wednesday, Casap announced a $56 million Series B funding round led by Base10 Partners, which brings its total funding to $90 million since the startup launched in 2023. The company, which declined to disclose a valuation, also…