RiskScout, a US platform combining BSA/AML compliance and fraud prevention for banks and credit unions, has secured fresh investment as community lenders face growing pressure to modernise their financial crime defences.
The company did not disclose the size of the round.
LiveOak Ventures led the round. Castle Creek Launchpad, the Bankers Helping Bankers Fund, Alloy Labs, Brue2 and C3 Ventures also took part.
The raise comes after a period of rapid expansion. Over the last 12 months, RiskScout’s revenue grew more than threefold, while its customer base of banks and credit unions rose by more than 250%.
Its clients range from small community institutions holding less than $100m in assets to organisations with over $10bn under management. The company expects this momentum to carry on for the rest of 2026.
Demand is being driven by a tougher operating environment for smaller lenders. Community banks are recording increasing fraud losses as fraud and money laundering activity become more intertwined.
At the same time, supervisors are scrutinising how well BSA/AML programmes actually perform. Many institutions are tackling these challenges with small compliance teams and ageing technology that handles fraud and BSA/AML as two distinct issues.
A team of former BSA officers and bank examiners founded RiskScout to address this divide.
Its unified platform merges anti-money laundering compliance with fraud prevention, connects with core banking systems and takes the place of fragmented legacy tools. Using intelligent automation and AI-powered agents, the software handles labour-heavy financial crime tasks such as reviewing alerts, building customer risk profiles, conducting enhanced due diligence and preparing SAR and CTR filings. It also helps institutions stop fraud losses as they occur.
RiskScout has expanded its headcount to meet rising demand, hiring former BSA officers, compliance specialists and fraud examiners with direct regulatory and investigative backgrounds. Part of the new funding will support further hiring. The company will also put the capital towards extending its automation and AI agent capabilities, strengthening integrations with core providers and other partners, and reaching additional 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 FinTech Global
