Startup That Hopes To Change How Banks Detect Fraud Just Received A New Round Of Funding

Rippleshot, a fraud analytics firm, announced Wednesday it has completed its latest round of funding.

The Chicago-based company raised $2.6 million in its financing round which was led by KDWC, a Chicago-based venture capital firm. Other investors include CMFG Ventures, which serves as the venture capital entity of CUNA Mutual Group.

Rippleshot is a cloud-based technology solution that combines machine learning and data analytics to discover fraudulent activity more efficiently. The technology processes millions of payment card transactions to identify when and where a breach took place.

In the event that a breach occurs Rippleshot's technology will be able to identify which cards are at risk of fraudulent activity and can also suggest the appropriate mitigation strategies to prevent fraud loss.

The company will use the proceeds from its financing round to grow its technical team of developers and data scientists. Management will also oversee an expansion into the merchant fraud detection space.

Board Member Addition

Rippleshot also announced that it has added Gloria Colgan to its board of directors. Colgan is an expert in the emerging payments sector with stints at PYMNTS.com, Discover Financial Services DFS and JPMorgan Chase & Co. JPM.

"This latest round of funding comes at a time where we are in a unique place to help bridge the fraud detection gap between issuers and merchants," said Canh Tran, CEO and co-founder of Rippleshot. "As we expand into the merchant space, we are excited to put this funding to good use as we work to encourage collaboration across the industry in order to make payments more secure for everyone. With Gloria joining our board, her impressive background will be invaluable as we take the next step in growing our footprint."

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Image Credit: Screen grab from rippleshot.com