Fraudulent e-commerce charges are on the rise and over $10 billion is wasted every year due to this. CashShield is a startup that helps business with its technology to cut down on some of this fraud before it occurs. Today, the company has raised $ 5.5 million to prevent credit card frauds.
CashShield is raising its first round of funding since it was founded in 2008. The $5.5 million was led by GGV Capital, with participation from Nest co-founder and iPod creator Tony Fadell. In a statement, Fadell said, “CashShield is at the forefront of fraud reduction through machine learning that best suits all current technologies on the market by an order of magnitude.”
CashShield has a unique way of running its business. Instead of subscriptions, its business model works on charging customers for every transaction. “It’s the only company in the sector with a Wall Street-style, high-frequency trading approach to weighing fraud risk for companies, and it’s clear that their technology will be in demand by many industries,” Fadell added.
With the new funding CashShield received, it plans to expand to Silicon Valley. The managing partner at GGV Capital, Jenny Lee said, “CashShield solves a problem that has international scalability. Any transaction – e-commerce, gaming, medical – is subject to fraud.”