Fraudsters now have an unprecedented advantage thanks to the rising threat of financial fraud using AI, which has contributed to a global crisis that will cost more than$ 1 trillion in 2023 alone. With an AI-driven program designed to protect consumers and financial institutions from social architectural fraud, Charm Security, an Israeli company emerging from secrecy, is now attempting to combat this rising cybercrime. The business announced a$ 8 million plant square led by Team8.
Co-founders of Charm, CEO Roy Zur and CEO Avichai Ben, both have extensive security and AI experience. Zur spent 20 years tackling crime, having previously served as a senior official in Israel’s Cyber Intelligence Unit 8200 and as a senior fraud prevention expert. Ben, who was formerly a information technology lead at Microsoft and Transmit Security, has played a significant role in creating AI-driven fraud detection systems for major corporations.
According to Zur,” Cybercriminals are evolving at an unprecedented rate, using AI to mislead customers before conventional fraud systems is intervene.” By utilizing AI-powered real-time interventions and mental insights to protect consumers when they need it most,” We are on a goal to break the’scam magic.”
Financial scams has evolved from simple system abuse to complex human-targeted techniques, with scammers increasingly turning to AI-generated voice and text to intimidate victims. In a recent report by Team8, AI-powered scams have grown to be a trillion-dollar industry, making it necessary for regulators to reevaluate liability laws for financial institutions, particularly in cases of authorized push payment ( APP ) fraud, where victims are defrauded into transferring funds voluntarily.
Standard fraud prevention systems, which rely on post-transaction research, frequently fail to account for real-time adjustment. By analyzing individual risk patterns and intermediate at crucial times before a scam is carried out, Charm Security aims to fill this gap. The company’s AI-enabled agents assess risk levels and implement real-time countermeasures, successfully preventing scams that are occurring.
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Rakefet Russak-Aminoach, Managing Partner at Team8 and former CEO of Bank Leumi, said that” AI-driven schemes and social engineering scams that prey on people threats have escalated to a trillion-dollar trouble.” The approach of” Charm Security helps companies to navigate changing regulatory expectations and protect their customers”
The recently secured funding will help Charm’s efforts to grow its team, promote product development, and build partnerships to increase the use of its fraud prevention platform.