Fraudio, a Dutch startup that has developed a cloud-native, centralized AI-powered payment fraud detection system, has successfully secured $3.3 million in seed funding.
The funding round included participation from venture capital firms BiG Start Ventures and BYND Venture Capital, alongside founders from companies such as Stone, SaltPay, Viva Wallet, ComplyAdvantage, and Volt.
Fraudio seeks to replace the traditional rules-based fraud prevention systems still in widespread use today. Its technology is tailored for all segments of the payments ecosystem, including payment service providers, acquirers, issuers, processors, card schemes, and major merchants managing their own checkouts or gateways.
The startup leverages its proprietary AI technology and extensive dataset, which incorporates real-time signals, to offer three main products: payment fraud detection, merchant-initiated fraud detection, and money laundering detection.
Fraudio already boasts a diverse client base across Europe, North America, Latin America, and Asia, featuring companies like Viva Wallet, Borgun, Novalnet, and PagueloFacil.