Chicago-based fraud analytics startup Rippleshot recently announced it raised $2.6 million in venture capital funding from a number of contributors. The funding round was led by venture capital firm KDWC and saw participation from CMFG Ventures, the venture capital arm of CUNA Mutual Group.
Founded in 2012, Rippleshot leverages the power of machine learning and data analytics to enable banks, card issuers and other financial institutions to spot fraudulent activity on customer accounts. Rippleshot will reportedly put the latest round of funding toward growing its teams of developers and data scientists to support further growth in the banking, credit union and merchant fraud detection spaces.
In addition to the latest round of funding, Rippleshot announced the addition of Gloria Colgan, an expert in the emerging payments sector, former president of PYMNTS.com and senior executive at JPMorgan Chase, to its advisory board.
“I am very pleased to join Rippleshot’s impressive board of seasoned payment veterans,” said Gloria Colgan. “This is an extremely exciting time in the company’s growth, and I look forward to helping accelerate their leading position in the market.”
Canh Tran, CEO and cofounder of Rippleshot, said in a statement: “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. 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.”
In June of last year, the Corporation for American Banking, a subsidiary of the American Bankers Association, endorsed Rippleshot’s Sonar card compromise detection tool, which processes millions of card transactions to find where and when a breach has occurred. The firms said that Rippleshot’s Sonar beat network-issued compromised account management system alerts by an average of 46 days. That meant that banks could reduce reissuance activities by 50 percent.