rewrite this title Fighting First-Party Fraud: How AI is Revolutionizing Dispute Resolution in Fintech – Finovate

First-party fraud is a growing problem for financial institutions and retail businesses. But relative to other fraud threats—from deepfakes to account takeover—first-party fraud is often overlooked when it comes to major fraud challenges faced by businesses. Nevertheless, this type of fraud, which takes place when an individual claims to have not made a purchase they have actually made, is a problem that has only increased as ecommerce has expanded.

In this interview, conducted at FinovateFall earlier this year, I spoke with Shanti Shanmugam, Co-Founder and CEO of Casap, about the challenge of first-party fraud and dispute resolution. Shanmugam explains how AI enables Casap to instantly distinguish legitimate disputes from fraudulent claims, reducing dispute resolution costs by 90% and reducing fraud losses for clients by 51%. Shanmugam discusses why trust is at the center of both banking relationships and the dispute resolution, and how a poor dispute resolution experience can impact how much business a customer decides to do with their primary financial institution in the future.

The true cost of disputes is in trust. You are saying ‘Hey, I really did not buy this TV at Best Buy, and I really need you to have my back.’ Right now, most financial institutions, especially if they’re not working with us, take on average 90 days to resolve your case. And you’re kind of waiting in the dark the whole time. Maybe they give you a credit up front, but at the end, if they don’t get that money back from the merchant, they’re going to be clawing that money back from you 90 days later. And that’s a very trust-breaking experience. It’s the number-one reason why people are leaving their institution as a primary financial relationship: because of a negative dispute experience. So that’s the hidden cost of a dispute.

Founded in 2022 and headquartered in New York City, Casap won Best of Show in its Finovate debut at FinovateFall 2025. The company’s dispute automation and first-party fraud prevention platform automatically resolves disputes, enabling financial institutions to intelligently manage first-party fraud. The technology also transforms the dispute resolution process into an opportunity to build lasting loyalty and trust. Casap’s solution increases recovery rates, identifies and prevents fraud patterns, and delivers fast, frictionless, low-cost dispute and chargeback resolution.

Photo by Kavoos Hosseinpour on Unsplash

Views: 273