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Fraudio sells artificial-intelligence software that helps payment companies spot fraud and money laundering as it happens.
Fraudio is a Dutch software company that sells artificial-intelligence tools to payment companies — the firms that move money between banks, merchants and shoppers. Its job is to catch the bad stuff: stolen cards being used, fake accounts, and criminals trying to wash dirty money through the payment system. Banks and payment firms run billions of transactions, and no team of humans can eyeball them all, so Fraudio's software watches the flow and flags the ones that look wrong.
The basic problem is a trade-off. Set the rules too tight and you block honest customers, which loses sales and annoys people. Set them too loose and the fraudsters walk through. Fraudio's pitch is that machine learning does this balancing act better than old rule-based systems, because it learns from patterns across many customers and many transactions rather than from a checklist someone wrote by hand. Fraudio was founded in Amsterdam in 2019 by a team with deep experience in payments and fraud, and it raised early funding from investors including Mastercard and the venture arm of Rabobank-linked funds, which matters because payment firms trust tools that other payment firms have blessed. Its customers are mostly payment service providers, acquirers — the companies that process card payments for merchants — and fintechs, all of whom face the same regulatory pressure to know their customers and report suspicious activity.
The business model is straightforward software subscription: customers pay to plug Fraudio into their transaction flow, and the more transactions it screens, the more valuable it becomes. It competes with big established fraud-detection vendors and with in-house teams at large banks, so its edge has to be speed, accuracy and the promise that a small payment company can rent world-class fraud defence instead of building it. The risk is the same as any vendor in a crowded, well-funded category: winning trust at scale before bigger players copy the trick.
Saved answer · last researched 15 Nov 2026