FraudScope (now Codoxo), an enterprise SaaS platform aimed at reducing healthcare billing claims fraud, waste, and abuse, announced that it has raised $1.5 million in seed round funding from Spider Capital, GRA Venture Fund, TechSquare Labs, Mosley Ventures and others. Spider Capital and GRA Venture Fund were co-leads of the round. The company will use the funds to scale customer acquisition and expand product development.
Healthcare fraud in the US is estimated to be $270 billion every year. Healthcare scams are constantly evolving, and current detection techniques and whistleblowers only uncover a small fraction of this. This increases the country’s healthcare costs to hospitals, insurance companies and the government. This burden then translates to higher costs for US taxpayers and increased consumer insurance premiums.
To counter this, FraudScope’s machine learning based technology detects and stops fraud trends in a timely manner. Investigators can also use the platform to conduct a full investigation. FraudScope’s comprehensive claims investigation platform empowers fraud analysts by automatically identifying constantly evolving fraud, waste and abuse trends before claims are paid.
"Healthcare fraud has become a major problem that harms individuals and health plans," said Dr. Musheer Ahmed, FraudScope’s co-founder and CEO. "We are thrilled to have these investors back us as we lead the fight against healthcare fraud, waste and abuse."
FraudScope was cofounded by Dr. Mustaque Ahamad, professor at Georgia Tech and cofounder of Pindrop. FraudScope’s patent-pending technology is based on research done at the Georgia Institute of Technology. FraudScope was the winner of the 2016 Atlanta Startup Battle.
“Healthcare is one of the most critical challenges facing the world and Fraudscope can play a part in making it more efficient by reducing waste and fraud,” said Michael Neril, Managing Partner at Spider Capital. “We’re excited about Fraudscope’s opportunity to solve a big problem while positively impacting the country’s healthcare system.”
"We are proud to see research discovered in Georgia is poised to solve a significant need in the healthcare industry,” Michelle Jarrard, Managing Director of the GRA Venture Fund adds. “This financing round is a terrific example of how investors, local and non-local, are working in collaboration to support Atlanta's aspiring entrepreneurs."
Allen Nance, Partner at TechSquare Labs, will join FraudScope’s board of directors. Other investors in the round include Service Provider Capital Fund and Vijay Balasubramaniyan, Pindrop's co-founder and CEO.
About Fraudscope (now Codoxo)
Co-founded by Dr. Musheer Ahmed and Dr. Mustaque Ahamad, FraudScope brings novel machine learning solutions to the fight against healthcare fraud. FraudScope’s vision is to deliver advanced fraud detection solutions to ensure that healthcare dollars go to real patient care. FraudScope’s breakthrough technology is the only solution that can detect constantly evolving fraud schemes in a timely manner. Get more information on FraudScope >