Charm Security has emerged from stealth mode, securing $8 million in seed funding led by Team8, to combat scams and social engineering attacks. The cybersecurity company, co-founded by Roy Zur and Avichai Ben, leverages AI-powered agents to prevent scams and protect organizations and their customers from human-centered fraud.
With over 20 years of cybersecurity experience, Zur and his partner Ben, an AI-driven fraud detection specialist, founded Charm Security to address the growing threat posed by AI-driven scams that exploit human vulnerabilities. The platform intervenes in real-time to disrupt these sophisticated threats, using psychological insights and data analysis to assess and mitigate risks before they materialize.
In recent developments, financial scams have evolved from system exploitation to complex social engineering, making individuals the weakest link in security. A recent Team8 report highlighted that AI-powered scams have led to $1.03 trillion in global losses. This underscores the urgent need for real-time, customer-centric scam prevention, especially given the increasing regulatory scrutiny and liability for authorized push payment (APP) fraud. Consequently, financial institutions are seeking more effective preventative measures.
Charm Security aims to counter these threats by assessing human vulnerability, analyzing customer risk patterns, and deploying tailored mitigation strategies. This proactive approach enhances defense mechanisms, offering real-time intervention during scam attempts. Notable figures such as Tomer Barel, President of Melio, acknowledge Charm’s potential to help financial institutions combat these advanced scams. Rakefet Russak-Aminoach, Managing Partner at Team8, underscores the necessity of a fundamental shift in fraud prevention strategies.
The funding will enable Charm to expand its team, accelerate product development, and broaden its market reach through strategic partnerships. Combining deep cybersecurity expertise with cutting-edge AI techniques, Charm is positioned to make a significant impact in fraud prevention, aligning with evolving regulatory demands while ensuring robust customer protection.
