Tender Armor, a financial technology startup based in Fort Lauderdale, announced it has closed “a multi-million-dollar Series A investment.”
The Series A round enables Tender Armor, a global fraud prevention technology provider, to drive new business and product innovation, expand its workforce, and meet increasing demand by financial institutions for its multi-patent-pending CVV+ solution.
The investment was led private investors Aubrey Strul and Barry Beck, with additional funding through Strul Logistics and Technology.
“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 K. Aufseeser, co-founder and CEO of Tender Armor, in a press release. "Now, with the support of investors, Tender Armor enters the next phase of growth, expanding our product and workforce, and driving new business within the payments industry and beyond.”
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. The CVV+ solution addresses the growing threat of card-not-present (CNP) fraud, which can result in customer hassles and significant losses for financial institutions. In the U.S. alone, CNP fraud is forecast to increase by 68 percent from 2016 to 2018, according to U.S. Payments.
The company's CVV+ technology anonymously authenticates the cardholder where ever payment cards are accepted, including through mobile devices, online, and over-the-phone, by generating a security code that only the cardholder can obtain, the company said. Tender Armor was founded in 2015.