Casap Raises $56M to Help Banks Stop Consumer Fraud

Credit card dispute processing at traditional commercial banks remains an administrative nightmare. When a consumer spots an unauthorized transaction on their monthly statement or experiences merchant billing fraud, resolving the dispute requires filling out paper forms, waiting on customer support phone lines, and waiting up to ninety days for back-office investigators to clear the charge. Dishonest consumers exploit this slow process through first-party fraud: buying luxury items online, claiming they never arrived, and demanding automatic chargeback refunds from issuing banks. Commercial lenders lose billions annually writing off fraudulent claims because manual human investigation costs more than the disputed purchase. New York financial software venture Casap stepped forward on Wednesday, October 28, 2026, to automate that broken dispute system. The startup announced a $56M Series B funding round led by Emergence Capital, with participation from Base10 Partners, Lightspeed Venture Partners, and Primary Venture Partners. The capital funds the expansion of an automated agent platform that cuts dispute resolution times from three months down to eight days while cutting first-party fraud losses in half. The funding arrives as financial institutions face mounting scam losses, continuing fintech developments we tracked when Revolut reached a $115B valuation challenging banking incumbents.

The investment round represents a major validation for co-founders Shanthi Shanmugam and Saisi Peters, who previously managed product and engineering operations at Robinhood and Chime. Since launching in 2022, Casap expanded its operational reach to more than one hundred commercial banks, credit unions, and payment processors. The company software handles the entire dispute lifecycle: collecting digital evidence, cross-referencing merchant receipts, detecting false customer claims, and filing formal chargeback documentation with payment networks like Visa and Mastercard. Casap reported that its autonomous software agents resolve seventy-three percent of dispute cases automatically without human intervention, while maintaining a ninety-six percent chargeback win rate compared to the sixty percent banking industry average. Human review time per complex dispute dropped from forty-five minutes down to less than two minutes, giving lenders tools to fight fraud without adding thousands of compliance employees. The rapid growth of compliance automation platforms matches software adoption patterns we examined when Numeral secured $100M for corporate tax automation.

The Explosion of First-Party Friendly Fraud

To grasp why commercial banks are rushing to deploy Casap software, one must inspect how consumer fraud tactics shifted over the past three years. In traditional cybercrime, third-party hackers stole credit card numbers from retail databases to purchase merchandise.

Today, the fastest-growing form of payment theft is first-party fraud, often called friendly fraud. Everyday consumers make legitimate purchases on shopping websites, receive the merchandise at their doorstep, and then file false claims through their mobile banking apps claiming their card was stolen or the delivery package was empty. Social media forums and video sharing apps openly circulate tutorials teaching consumers how to exploit bank dispute rules to get free products. Under federal banking regulations like Regulation E and Regulation Z, lenders must provisionally credit customer accounts within ten days while investigating disputes. Because banks face strict deadlines and shortage of claims investigators, they write off hundreds of millions in fraudulent chargebacks rather than spending staff hours gathering delivery signatures and merchant records. Casap autonomous software changes this economic calculation: gathering digital courier tracking logs, IP location data, and merchant checkout records in seconds to contest false claims automatically. Systemic digital security risks were detailed in our analysis of how machine tools lowered barriers for digital intrusions.

Comparing Financial Dispute Resolution Methods