RiskScout, a provider of combined BSA/AML compliance and fraud prevention software for banks and credit unions, has closed a fresh investment round after a year in which its revenue more than tripled.
LiveOak Ventures led the round. Castle Creek Launchpad, the Bankers Helping Bankers Fund, Alloy Labs, Brue2 and C3 Ventures also took part.
Over the past twelve months, RiskScout expanded its client base of banks and credit unions by more than 250%.
Its customers range from community lenders holding less than $100m in assets to institutions with over $10bn on their balance sheets. The company anticipates this momentum will carry on for the rest of 2026.
The backing arrives as smaller lenders come under growing strain. Community banks are recording higher fraud losses, and the boundary between fraud and money laundering activity is increasingly blurred.
At the same time, supervisors are scrutinising how well BSA/AML programmes actually work. Many lenders are responding with small compliance departments and ageing software that handles fraud and anti-money laundering as two unrelated disciplines.
RiskScout was founded by former BSA officers and bank examiners to address that disconnect.
Its platform unites BSA/AML compliance and fraud detection in one system, connects to core banking providers and takes the place of fragmented legacy tools. The company applies intelligent automation and AI-driven agents to labour-heavy financial crime tasks such as alert investigation, customer risk profiling, enhanced due diligence and the preparation of SAR and CTR filings, while also stopping fraud losses as they occur.
To meet rising demand, RiskScout has hired former BSA officers, compliance specialists and fraud examiners, bringing direct regulatory and investigative know-how into the business. Part of the new funding will support further hiring.
The capital will also go towards extending its intelligent automation and AI-driven agents, strengthening links with core providers and other partners, and taking the platform to a wider pool of banks and credit unions.
RiskScout co-founder and CEO Justin Fischer said, “Every new institution that comes on board is a community that gets safer from fraud and financial crime. That’s what gets our team out of bed. This round means we can keep saying yes to banks and credit unions of every size, because no financial crime fighter should be under-equipped against bad actors.”
Copyright © 2026 RegTech Analyst
Copyright © 2026 RegTech Analyst
