According to Team8's Fraud Exposed report published in February 2025, AI-powered scams and social engineering have led to staggering global financial losses of approximately $1.03 trillion.

As generative AI helps scammers craft increasingly convincing fraud schemes, a new startup is looking to fight technology with technology - while focusing on the human element at the center of the problem. New York-based Charm Security announced today it has raised $8 million in seed funding to develop its platform aimed at preventing scams by disrupting what the company calls the "scam spell" that fraudsters cast on their victims.

The round was led by Team8, a venture creation firm specializing in cybersecurity, fintech, and AI.

"Scammers are evolving at an unprecedented pace, using AI to deceive customers before traditional fraud systems can intervene," said Roy Zur, Co-founder & CEO of Charm Security. "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."

Zur, a veteran of Israel's elite Cyber Intelligence Unit 8200 and a serial entrepreneur with over two decades in cybersecurity, founded the company alongside Avichai Ben, former Data Science Lead at Transmit Security and Microsoft.

Breaking the "scam spell" before it’s too late

Charm is focused on proactive intervention, rather than simply detecting fraud after it occurs. The company's platform is designed to analyze transactional data and behavioral patterns in partnership with banks to develop risk profiles for different scam types.

When potential social engineering is detected, the system can intervene with contextual alerts or temporarily halt transactions, giving potential victims a chance to recognize the manipulation attempt before it's too late.

Charm will utilize the new funding to expand its team, accelerate product development, broaden its market reach, and forge strategic partnerships to increase the adoption of its scam prevention platform.

As AI-powered scams continue to evolve, Charm Security believes its focus on the human element and psychological insights will provide a crucial advantage in the ongoing battle to protect consumers from sophisticated fraud.