FraudScope, an Atlanta-based AI platform that detects health care fraud, has raised a $7 million Series A round led by QED Investors, Brewer Lane Ventures and the local GRA Venture Fund. Atlanta's Mosley Ventures and TechSquare Labs also participated in the round, along with Spider Capital out of San Francisco.
The funding will be used to scale the FraudScope team and expand product offerings. The Series A round brings FraudScope’s total funding to $10.5 million.
"The rising cost of health care is a perfect example of an issue that hurts consumers, businesses, and the economy as a whole – and one that technology is uniquely positioned to help solve,” Matt Risley, partner at QED Investors, said in a statement. “We look forward to using our operational expertise to help the FraudScope team use its cutting-edge machine learning to reduce healthcare fraud, shoring up health plans and bringing down costs for consumers and employers at a time when both are under tremendous pressure.”
According to FraudScope, health care fraud, waste and abuse is a $300 billion cost and is expected to rise as Covid-19 cases climb. The cost amounts to 3-10% of the total health care cost in the U.S. Fraudulent claims related to Covid-19 have already begun; recently the Department of Justice charged a tech company president with $69 million in fraudulent charges related to allergy and Covid-19 testing.
“Our artificial intelligence-driven innovations in fraud, waste, and abuse identification and prevention are matched only by the results we deliver to our customers,” Musheer Ahmed, CEO of FraudScope, said in a statement. “With this round of financing, we are closer to realizing our vision of becoming the AI-based collaboration platform that integrates across fraud, payment integrity, clinical and provider network teams to drive down costs and increase efficiencies for health plans.”
Earlier this year, FraudScope announced its platform had saved tens of millions of dollars in fraud, waste and abuse identifications and savings.
This announcement follows a host of other news coming from FraudScope in recent months. In the first quarter, FraudScope announced its AI platform had helped health plan customers realize tens of millions of dollars in fraud, waste, and abuse identifications and savings.
