Cybersecurity startup Charm Security has officially exited stealth mode after raising $8 million in seed funding led by Team8. The New York-based company is set to combat the growing wave of sophisticated social engineering attacks fueled by generative AI technologies.
Founded in 2024 by cyber intelligence veteran Roy Zur and AI-driven fraud prevention expert Avichai Ben, Charm Security introduces an AI-powered customer security platform designed to protect businesses and their customers from human-centric scams and deception.
With cyber threats becoming more intricate, especially in financial services, Charm aims to safeguard institutions facing increasing liability risks. As scams evolve rapidly with the help of AI tools, traditional fraud detection systems often fail to keep up. Charm is stepping in to bridge that gap.
Unlike conventional solutions that react after fraud occurs, Charm’s platform proactively analyzes human vulnerability and customer risk patterns. By providing tailored mitigation strategies and real-time insights, it helps businesses prevent scams before they happen.
What sets Charm apart is its ability to disrupt manipulation in real time, whether it unfolds digitally, over the phone, or during in-person interactions. The platform not only protects customers but also builds dynamic risk profiles, assesses employee readiness, and delivers targeted awareness programs alongside proactive prevention tools.
Charm Security’s solution is versatile, serving a wide range of industries, including banks, credit card companies, payment processors, digital platforms, telecom providers, retailers, healthcare, insurance, and utility companies. By focusing on high-risk sectors, the company aims to minimize financial losses and reputational damage caused by AI-powered scams.
The newly secured funds will fuel hiring efforts, accelerate product development, and expand strategic partnerships as Charm pushes to increase its market share and adoption.
“Our mission is to break the ‘scam spell’ scammers cast using AI,” said Roy Zur, Charm’s co-founder and CEO. “Fraudsters are evolving faster than ever, leveraging generative AI to deceive customers before traditional systems can react. Charm’s AI-powered, real-time interventions and psychological insights provide protection exactly when users need it most.”
