Founder Sam Bouso told Built In Chicago the funds will be used to scale the company in the face of growing demand, expanding from four full-time employees to seven in the next week or two.
Founded in January 2016, Chicago-based Precognitive is building a cloud platform to help online businesses such as banks, retailers and payment processors fight credit card fraud.
The tool uses device intelligence, advanced behavioral analytics and a real-time decision engine to detect fraudulent transactions before they are processed while also reducing the number of legitimate customer transactions that are mistakenly flagged and rejected, according to the company.
Buoso, who has more than 10 years of experience in the online fraud and IT security space, told Built in Chicago the company will also consider using the funding to dive into new business verticals.
Bouso built his first fraud prevention platform at Prepaid Solutions USA, then went on to become an early team member at Accertify. He has also worked for 41st Parameter, now owned by Experian, where he developed and enhanced fraud technology.