A new AI security platform, Charm, has launched with $8 million in seed funding to help financial institutions fight the rising tide of social engineering scams and human-centric fraud. The round was led by Team8, the venture firm that co-created Charm with its founders—cyber intelligence expert Roy Zur and former Microsoft data scientist Avichai Ben.
The Growing Threat of Human-Centric Fraud
Charm highlights a critical shift in fraud tactics: where attackers once exploited system vulnerabilities, they now increasingly manipulate human psychology through AI-enhanced scams. These include deepfake voice calls, phishing-as-a-service, and emotionally engineered cons that bypass traditional fraud detection.
How Charm’s AI Platform Works
- Vulnerability Assessment: Analyzes customer behavior to identify high-risk interactions.
- Real-Time Intervention: Uses AI to detect and disrupt scams mid-conversation.
- Psychological Insights: Adapts protections based on behavioral patterns.
- Tailored Mitigation: Provides banks with customized fraud prevention strategies.
The funding will accelerate hiring, product development, and partnerships with financial institutions.
Roy Zur, CEO of Charm, stated:
“Scammers are evolving at an unprecedented pace, using AI to deceive customers before traditional fraud systems can intervene. We’re on a mission to break the ‘scam spell’ by leveraging AI-powered real-time protections when users are most vulnerable.”
Why It Matters
- Banks lose billions annually to social engineering scams.
- Legacy fraud systems often fail against AI-driven manipulation.
- Charm’s approach could set a new standard in behavioral fraud prevention.
The launch comes as regulators push for stronger consumer protections against financial fraud.