Israeli cybersecurity startup Charm Security has emerged from stealth mode with US$8 million in seed funding, led by Team8.

Founded by CEO Roy Zur and CTO Avichai Ben, the company focuses on combating AI-driven financial scams.

Zur, a former officer in Israel’s Cyber Intelligence Unit 8200, has extensive experience in fraud prevention, while Ben has worked on AI fraud detection at Transmit Security and Microsoft.

Charm Security’s platform targets social engineering fraud using AI to analyze human vulnerability patterns and intervene in real time.

With AI-generated scams causing over US$1 trillion in financial losses in 2023, regulators are considering new liability rules for banks.

The funding will help the company expand its team, enhance product development, and build partnerships to strengthen fraud prevention.