Tender Armor, a global fraud prevention payments technology provider, has closed a multi-million-dollar Series A round.
The investment was led by private investors Aubrey Strul and Barry Beck, with additional funding through Strul Logistics and Technology. With new capital onboard, Tender Armor to invest in new business and product innovation, expand its workforce, and meet increasing demand by financial institutions for its flagship offering, CVV+ solution.
CVV+, is a real-time, dual-factor, out-of-band fraud prevention solution primarily designed for card-not-present (CNP) payment card transactions. Fraudulent CNP charges results in significant losses for financial institutions such as replacement card costs, countless lost purchase dollars, and perhaps most painful, customer attrition. The company’s offering works to prevent fraud from occurring before it happens, unlike other solutions that don’t detect fraud until the transaction is being processed.
“Three years ago, the market void in fraud prevention solutions was evident as it still is today. We set out to create a highly effective payment fraud prevention tool that deputizes cardholders to protect them from fraudsters,” said Madeline Aufseeser, CEO of Tender Armor. “This Series A investment validates our CVV+ technology, go-to-market strategy, and competitive edge in the payment card fraud prevention arena.”
According to American Express, nearly half of consumers who shop online report they have been the victim of payment fraud, representing nearly 80 million online shoppers.
Tender Armor’s solution protects consumers against ecommerce fraud, lost and stolen cards, retailer breaches and unauthorized use of their credit, debit, and prepaid cards. For financial institutions, CVV+ helps reduce CNP charge-off losses, curtails cardholder attrition and decreased card usage, and minimizes payment card re-issues while avoiding costly reputational damage.
It works by anonymously authenticating the cardholder everywhere payment cards are accepted, with cardholders securely receiving their CVV+ code via a mobile app, text-on-demand, a daily SMS message, email, or through their card issuer’s banking site. To complete the transaction, the CVV+ code is used by the cardholder in place of the static security code printed on the payment card.
Founded in 2015, Tender Armor is led by financial services industry veteran and female FinTech founder, Madeline Aufseeser, and co-founder Robert Steinman.
Prior to Tender Armor, Aufseeser served as a senior analyst with Aite Group (a leading FI research and advisory firm). She previously served as a lead strategist and product owner for prepaid products at FIS, senior vice president of products at First Data Corporation, vice president of marketing operations at First Union (now a Wells Fargo company), and worked with MasterCard International and the Bank of New York. Currently, Steinman is CEO & co-founder of Capitol Supply, the managing partner of Capitol Development, and the COO & co-Founder of CapSoft, a software startup.
Copyright © 2018 RegTech Analyst
Copyright © 2018 RegTech Analyst
