Casap Flags Surge in First-Party Fraud as Banks Eye Agentic AI Solutions

New updates have been reported about Casap.

Casap is positioning itself at the center of banks’ fraud strategies with its new “What’s Going on in Fraud 2026” report, produced with Cornerstone Advisors and based on responses from more than 400 U.S. bank and credit union executives. The study underscores that first-party fraud, committed by legitimate account holders and surfacing weeks later in dispute operations, has jumped to 36% of all reported fraud in 2024 from 15% a year earlier, overwhelming legacy tools and back-office teams.

For Casap, this shift validates demand for its agentic AI platform, which automates the full dispute lifecycle and targets first-party fraud at scale. Nearly half of surveyed institutions reported higher fraud losses in 2025 and two-thirds expect further increases in 2026, while 75% of executives view agentic AI as a credible path for early detection and cross-case pattern recognition, yet 42% remain hesitant to deploy it due to limited understanding of how it works in production.

The report highlights serious performance gaps in existing fraud systems, with almost half of respondents unable to quantify how many false claims their tools correctly flag and another quarter saying their systems catch fewer than 20% of such cases. Casap’s leadership argues that the ambiguity of first-party fraud—spanning deliberate abuse, confusion, and financial distress—demands a new approach to dispute operations, from intake through resolution, rather than incremental tweaks to current workflows.

CEO and co-founder Shanthi Shanmugam frames this moment as an inflection point, contending that institutions that move first on agentic AI will structurally outperform peers as fraud losses climb and customer switching friction falls. Casap reports that clients using its AI agents and proprietary fraud scoring are achieving more than 51% reductions in fraud losses with positive ROI in weeks, suggesting meaningful financial upside for early adopters.

The research also implies that fraud is increasingly a behavioral and operational challenge, not just a perimeter-security issue, which aligns with Casap’s focus on dispute-centric analytics. With backing from venture investors and $33.5 million raised to date, the San Francisco-based company is aiming to become the default infrastructure for banks, credit unions, and fintechs seeking to redesign fraud and dispute operations before the gap between current capabilities and threat levels becomes unmanageable.

Survey methodology indicates the findings are highly relevant to mid-sized institutions, with 89% of the 416 respondents coming from organizations holding $250 million to $50 billion in assets and more than 70% at C-suite level, including about 30% CEOs. Casap’s collaboration with Cornerstone Advisors, a long-standing banking consultancy, further signals its intent to shape industry playbooks on first-party fraud and position its agentic AI platform as a core component of future fraud and dispute strategies.