Fraudio, a Netherlands-based payments fraud prevention startup, announced that it has raised US$3.3 million during a seed funding round.
Investors in this round are the founders of FinTech companies Stone and SaltPay, VCs BiG Start Ventures and BYND Venture Capital, as well as the founders of Viva Wallet, ComplyAdvantage and VOLT, and experts from the payments and cybersecurity industries.
Fraudio’s funding came at a time when there is growing demand for fraud detection solutions as more merchants and consumers move online in the wake of the Covid-19 pandemic.
The team has spent 2 years building what it describes as a cloud native centralised AI and machine learning payment fraud detection solution that can be leveraged by any company in the payments ecosystem; payment-service-providers (PSPs), acquirers, issuers, processors, card schemes and even large merchants who run their own checkout or gateway.
The aim is to offer a modern replacement to the generation one rules based systems or generation two integration heavy fraud prediction models that are standard in the market today.
Fraudio’s current customers include Viva Wallet, Borgun, Novalnet, PagueloFacil and other undisclosed customers in Europe, North America, Latin America and Asia.
“More than 70% of fraud is caused by organised crime groups. These are sophisticated organisations with their own data scientists developing cutting edge AI solutions that are constantly evolving.
Their industry is booming, with some reports indicating payment fraud was up over 600% year-on-year during Covid-19. The old way of doing things is just not working anymore.”
said Nathan Trousdell, COO and Co-Founder of Fraudio.
Featured image credit: edited from Unsplash
