Casap Raises $25M to Fight First-Party Fraud With AI-Powered Dispute Automation

Casap, a New York-based startup aiming to overhaul the financial industry's outdated dispute resolution processes, has raised a record-setting $25 million Series A round. The round was led by Emergence Capital, with participation from Lightspeed Venture Partners, Primary Venture Partners, SoFi, and others—bringing the company’s total funding to $33.5 million according to a press release.

At the heart of Casap’s mission is first-party fraud, which now represents 30–50% of all fraud losses for financial institutions. These are cases where consumers falsely dispute legitimate transactions—whether intentionally or not—putting both operational efficiency and customer trust on the line.

AI as the Core Operating System for Disputes

Casap’s AI platform automates the entire dispute lifecycle, from intake and chargeback filings to customer communication and credit issuance. The system predicts likely outcomes, flags suspicious behavior using proprietary fraud scores, and allows financial institutions to resolve claims in real-time—reducing both manual work and errors.

The results are already resonating across the financial sector. Chartway FCU and MidSouth Community FCU, among Casap’s growing customer base, have reported a 51% reduction in fraud losses and faster resolution timelines—all without needing to expand headcount. The company’s AI-driven decisioning replaces spreadsheets, emails, and manual tracking with a unified system that prioritizes speed, transparency, and regulatory compliance.

“Disputes are one of the most emotionally charged moments in finance,” said Carlotta Siniscalco, partner at Emergence Capital. “Casap turns them into an opportunity to earn trust—the only currency that matters.”

With demand from customers to expand beyond disputes into other post-transaction workflows, the Series A funding will support hiring, product development, and further deployment of Casap’s AI across the payments lifecycle.

TheMarketAI.com Take

Payment disputes and chargeback resolution are a compelling use case for AI—adjacent to customer service, highly repetitive, and notoriously expensive for financial institutions. It's no surprise that Casap has found early traction tackling this problem.

But while automation here feels like low-hanging fruit, it also raises an important concern: Are AI systems truly ready to make unsupervised financial decisions? Issuing credits, filing chargebacks, or flagging suspicious behavior are not trivial tasks—they have direct monetary implications and reputational consequences.

As AI moves deeper into the financial stack, oversight and auditability will become critical. Casap may be leading the way, but the industry as a whole will need to tread carefully.