Charm Security Launches with $8M Funding to Combat AI-Driven Fraud

Charm Security launches with $8M in funding to tackle AI-driven fraud - SiliconANGLE

Charm Security launches with $8M in funding to tackle AI-driven fraud Scam prevention platform startup Charm Security Ltd. launched today with an announcement that it has raised $8 million in funding to accelerate product development, expand market reach and form strategic partnerships to scale up its platform. The company was founded by cybersecurity expert and serial entrepreneur Roy Zur, who served as a senior officer of the Israeli Cyber Intelligence Unit 8200, and Avichai Ben, a former data science lead at Transmit Security Ltd. and Microsoft Corp. It aims to mitigate scam risks by assessing human vulnerability exposure, analyzing customer risk patterns and delivering tailored mitigation strategies based on psychological insights, data analysis and artificial intelligence. Charm seeks to assist in addressing the rising problem of fraud tactics evolving from system exploitation to sophisticated social engineering, making individuals the weakest link in security. Thrown into the mix is a rise in AI-powered scams that have resulted in increasing losses. The startup approaches fraud tactics with a proactive approach that strengthens defenses before scams occur. When scams are actively unfolding, Charm can go a step further by disrupting them in real time. "Scammers are evolving at an unprecedented pace, using AI to deceive customers before traditional fraud systems can intervene," said co-founder and Chief Executive Zur. "We are on a mission to break the 'scam spell' by leveraging AI-powered real-time interventions and psychological insights to protect users when they need it most." Charm's approach to fraud prevention combines psychological insights, data analysis and AI to proactively defend against scams before they occur. The platform begins by discovering and analyzing customer risk patterns and vulnerabilities, allowing organizations to implement tailored mitigation strategies. The company's platform also protects customers and frontline staff with real-time security insights, personalized recommendations and verification tools that empower better decision-making. During high-risk transactions, the platform can intelligently intervene to disrupt manipulation attempts in the moment, taking a holistic approach that reduces scam-related losses and operational costs. The seed funding came from the venture capital fund Team8 Labs Ltd., which was also involved in the company's foundation and early development. "AI-driven scams and social engineering fraud that preys on human vulnerabilities have escalated into a trillion-dollar problem, demanding a fundamental shift in fraud prevention," said Rakefet Russak Aminoach, managing partner at Team8. "Charm Security's approach empowers organizations to protect their customers and navigate evolving regulatory expectations."

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This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community. The round was led by Team8, a global venture creation firm that helped build Charm with its founders cyber intelligence expert Roy Zur and former Microsoft data scientist Avichai Ben. Charm says that fraud tactics have evolved from system exploitation to sophisticated social engineering, making individuals the weakest link in security. To tackle this, the startup uses AI, data analysis and psychological insights to assess human vulnerability exposure, analyse customer risk patterns, and deliver tailored mitigation strategies. The funding will be used for staff recruitment, product development, and to forge strategic partnerships. Says Zur: "Scammers are evolving at an unprecedented pace, using AI to deceive customers before traditional fraud systems can intervene. We are on a mission to break the 'scam spell' by leveraging AI-powered real-time interventions and psychological insights to protect users when they need it most."