Casap raises $56M Series B to help banks fight customer-driven card fraud
What's the deal? Casap, a financial AI startup, has raised a $56 million Series B led by Base10 PartnersDealroom has a profile for this one. Try Dealroom →, bringing total funding to $90 million since its 2023 launch. Its AI suite helps banks and card companies handle disputes and chargebacks. The company declined to disclose a valuation.
Who's backing it? Synchrony and ExperianDealroom has a profile for this one. Try Dealroom → joined as strategic investors, alongside existing backers Lightspeed Venture Partners, Emergence, and Primary.
Why now? The nature of card fraud is shifting. Cardholders themselves now account for nearly a third of fraudulent transactions — a trend fuelled by AI tools that make disputing charges easier and social media groups sharing fraud tips.
How it works: Casap's AI was trained on large models but uses a purpose-built harness for dispute resolution. It weighs criteria like a card's physical location and spending patterns to flag likely dishonest claims, keeping a human in the review loop.
The results, per the company: customers have cut first-party fraud losses by up to 51% and raised their chargeback win rate to 96%, against a 60% industry average. Average resolution time drops to eight days, compared with up to 90 for traditional methods.
What's the endgame? Casap, whose name conveys "get your Case done ASAP," will use the funding to expand into adjacent bank back-office work, including customer complaints and collections. Chief executive officer Shanthi Shanmugam co-founded the company with Chime veteran Saisi Peters.
The signal: At $56 million, the round sits above roughly 90% of all US fintech Series B deals on record. As consumer-protection rules push banks to settle small disputes rather than investigate, demand for tools that separate honest claims from "white lies" is climbing. "When you look at the rules that govern these disputes, they are written in a way that almost assumes that no one lies," Shanmugam said.
Read more: fortune.com
Image credit: Casap
