Casap, a startup that uses AI to handle card disputes for banks, has raised a $56 million Series B round to fight first-party fraud. That is fraud committed by cardholders themselves, and it now makes up nearly a third of fraudulent card transactions. The round was announced Wednesday and brings the company’s total funding to $90 million since it launched in 2023.
What Casap Announced
Base10 Partners led the round. Synchrony and Experian joined as strategic investors, and earlier backers include Lightspeed Venture Partners, Emergence and Primary. Casap declined to share a valuation.
The company was founded by CEO Shanthi Shanmugam and Saisi Peters, a Chime veteran. Shanmugam previously worked as a product manager at Robinhood, Meta and Salesforce.
| Detail | What we know |
|---|---|
| Round | $56 million Series B |
| Lead investor | Base10 Partners |
| Strategic investors | Synchrony and Experian |
| Total raised | $90 million since 2023 |
| Valuation | Not disclosed |
Why Card Dispute Fraud Is Growing
Most card scams used to come from outside criminals. Today, cardholders account for close to a third of fraudulent transactions, according to the company. Casap points to AI tools that make filing a dispute easier, plus social media groups that trade tips for getting “free stuff.”
Consumer protection laws are strong against outside fraud, but they also put a heavy burden on banks that want to reject a dishonest claim. Many banks simply approve every dispute under a set amount, often around $30. In some cases, that cutoff is much higher because investigations cost time and money.
How the AI Dispute Platform Works
Casap built its system on several large AI models and added a custom “harness” designed only for dispute resolution. The company does not list every signal it checks. It says they include things like where a card was physically used and spending patterns.
A human still reviews each case. The AI does the sorting, so a reviewer often needs only one to two minutes to clear a case.
The CEO describes the problem as one where people tell what they see as white lies, because they think banks have plenty of money and the crime hurts no one. Casap’s pitch is that its software makes those lies easier to spot.
Results the Company Reports
These figures come from Casap itself, not from an independent audit.
- Customers cut first-party fraud losses by as much as 51%.
- Chargeback win rates reach 96%, compared with an industry average of about 60%.
- Disputes take about 8 days on average, versus up to 90 days with older methods.
Next Steps Beyond Card Dispute Fraud
Casap built its name on first-party fraud claims. Now it plans to move into other bank back-office work, including customer complaints and collections.
It fits a wider trend of AI agents taking over routine business workflows, and of money flowing into AI security startups.
What This Means for You
Disputes are meant to protect you, and they still do. But banks are getting better at spotting false claims, so honest cardholders and dishonest ones may be treated more differently over time.
- Keep receipts and delivery confirmations for big purchases.
- Contact the merchant before filing a dispute, since many issues can be fixed faster that way.
- Expect faster answers on disputes as more banks adopt AI review.
- If you run a business, explore business AI tools that cut manual back-office work.
Sources
Primary source: none, as Casap has not posted a public announcement we could find. Reporting from Fortune, which interviewed the CEO.
Conclusion
Casap’s $56 million round shows investors believe AI can take on one of banking’s costliest headaches. Fraud by cardholders is hard to catch, and banks have often chosen to pay rather than fight. If Casap’s reported results hold up, more lenders may start fighting back with AI.
