Chicago Startup Rippleshot Rases $2.6 Million Dollars To Help Merchants and Banks Fight Fraud
Rippleshot is a Chicago area startup that uses their own proprietary cloud based technology to fight credit and debit card fraud. Their technology uses data analytics and machine learning to detect a breach of card data, identify which customer’s card is most likely to have seen fraudulent activity, and suggest strategies to prevent future fraud loss. Their platform looks at where customers are using their cards and if they are in high risk areas. It also looks at behaviors in credit/debit card transactions that are outside the customers normal spending habits.
The company was founded in 2012 by CEO Canh Tran, Yueyu Fu and Randal Cox. They use their current technology with banks and credit unions.
With this investment, the company is working on a merchant facing product that will help retailers quickly determine if the customers payment method actually belongs to that customer. They’re hoping that Rippleshot would roll into merchants current fraud detection systems. They plan to release the product later in the year.
KDWC, a Chicago-based venture capital firm which led the group of notable investors, including CMFG Ventures, which is the venture capital entity of CUNA Mutual Group. In addition to closing this latest round of funding, Rippleshot also announced the addition of Gloria Colgan to its advisory board. Colgan is a recognized expert in the emerging payments sector having formerly served as President of PYMNTS.com, a top-ranking source of information in the payments industry, and as a senior executive at Discover Financial Services and JPMorgan Chase.
“I am very pleased to join Rippleshot’s impressive board of seasoned payment veterans,” says 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.”