Join our daily and weekly newsletters for the latest updates and exclusive content on industry-leading AI coverage. Learn More<\/em><\/p>\n\n\n\n New York-based Jericho Security has secured $15 million in Series A funding to scale its AI-powered cybersecurity training platform. The investment, announced today, follows the company\u2019s successful five-month execution of a $1.8 million Department of Defense contract that put the two-year-old startup on the cybersecurity map.<\/p>\n\n\n\n \u201cWithin minutes, a sophisticated attacker can now create a voice clone that sounds exactly like your CFO requesting an urgent wire transfer,\u201d said Sage Wohns, co-founder and Chief Executive Officer of Jericho Security, in an exclusive interview with VentureBeat. \u201cTraditional cybersecurity training simply hasn\u2019t kept pace with these threats.\u201d<\/p>\n\n\n\n The funding round was led by Jasper Lau at Era Fund, who previously backed the company\u2019s $3 million seed round in August 2023. Additional investors include Lux Capital, Dash Fund, Gaingels Enterprise Fund and Gaingels AI Fund, Distique Ventures, Plug & Play Ventures, and several specialized venture firms.<\/p>\n\n\n\n Jericho\u2019s profile rose significantly last November when the Pentagon selected the company for its first generative AI defense contract. The $1.8 million award through AFWERX, the innovation arm of the Air Force, charged Jericho with protecting military personnel from increasingly sophisticated phishing attacks.<\/p>\n\n\n\n \u201cThere was a highly publicized spear-phishing attack targeting Air Force drone pilots using fake user manuals,\u201d Wohns noted in an earlier interview. The incident underscored how even highly trained personnel can fall victim to carefully crafted deception.<\/p>\n\n\n\n This federal contract helped Jericho stand out in a crowded cybersecurity market where established players like KnowBe4, Proofpoint, and Cofense dominate. Industry analysts value the security awareness training sector at $5 billion annually, with projected growth to $10 billion by 2027 as organizations increasingly recognize human vulnerability as their primary security weakness.<\/p>\n\n\n\n Unlike conventional security training that relies on static templates and predictable scenarios, Jericho\u2019s platform employs what Wohns calls \u201cagentic AI\u201d \u2014 autonomous systems that behave like actual attackers.<\/p>\n\n\n\n \u201cIf an employee ignores a suspicious email, our system might follow up with a text message that appears to come from their manager,\u201d Wohns explained. \u201cJust like real attackers, our AI adapts to behavior, learning which approaches work best against specific individuals.\u201d<\/p>\n\n\n\n This multi-channel approach addresses a fundamental limitation of traditional security training: most programs prepare employees for yesterday\u2019s attacks, not tomorrow\u2019s. Jericho\u2019s simulations can span email, voice, text messaging, and even video calls, creating personalized attack scenarios based on an employee\u2019s role, behavior patterns, and previous responses.<\/p>\n\n\n\n The company\u2019s client dashboard shows which employees fall for which types of attacks, allowing organizations to deliver targeted remediation. Early data suggests that employees trained with adaptive, AI-driven simulations are 64% less likely to fall for actual phishing attempts than those who receive traditional security awareness training.<\/p>\n\n\n\n The financial stakes of these new threats became clear in a case Wohns highlighted involving a finance executive deceived by artificially generated versions of company leadership.<\/p>\n\n\n\n \u201cA CFO in Singapore was deceived into transferring nearly $500,000 during a video call that appeared to include the company\u2019s CEO and other executives,\u201d Wohns recounted. \u201cUnbeknownst to the CFO, these participants were AI-generated deepfakes, crafted using publicly available videos and recordings.\u201d<\/p>\n\n\n\n The attack began with a seemingly innocent WhatsApp message requesting an urgent Zoom meeting. During the call, the deepfake avatars persuaded the CFO to authorize the transfer. Only when the attackers attempted to extract more funds did suspicions arise, eventually involving authorities who recovered the initial transfer.<\/p>\n\n\n\n Such incidents are becoming alarmingly common. According to Resemble AI\u2019s Q1 2025 Deepfake Incident Report, financial losses from deepfake-enabled fraud exceeded $200 million globally during just the first quarter of 2025. The report found that North America experienced the highest number of incidents (38%), followed by Asia (27%) and Europe (21%).<\/p>\n\n\n\n Industry reports have documented staggering growth rates in recent years, with some studies showing deepfake fraud attempts increasing by more than 1,700% in North America and exceeding 2,000% in certain European financial sectors. Wohns identified an even more concerning emerging threat that few security teams are prepared for: \u201cAI agents phishing AI agents.\u201d<\/p>\n\n\n\n \u201cAs AI tools proliferate inside companies from customer support chatbots to internal automations, attackers are beginning to target and exploit these agents directly,\u201d he explained. \u201cIt\u2019s no longer just humans being deceived. AI systems are now both the targets and the unwitting accomplices of compromise.\u201d<\/p>\n\n\n\n This represents a fundamental shift in the cybersecurity landscape. When organizations deploy AI assistants that can access internal systems, approve requests, or provide information, they create new attack surfaces that traditional security approaches don\u2019t address.<\/p>\n\n\n\n While major enterprises have long been primary targets for sophisticated attacks, smaller organizations are increasingly finding themselves in cybercriminals\u2019 crosshairs. Recognizing this trend, Jericho has launched a self-service platform that allows companies to deploy AI-powered security training without the enterprise sales cycle.<\/p>\n\n\n\n \u201cThe self-service registration is in addition to our enterprise sales approach,\u201d Wohns said. \u201cSelf-Service is designed to provide no-touch\/low-touch for Small to Medium Businesses.\u201d<\/p>\n\n\n\n Users can sign up for a seven-day free trial and explore the product without sales meetings. This approach stands in contrast to industry norms, where cybersecurity solutions typically involve lengthy procurement processes and high-touch sales approaches.<\/p>\n\n\n\n The $15 million investment will primarily fund three initiatives: expanding research and development, scaling go-to-market strategies through partnerships, and growing Jericho\u2019s team with a focus on AI and cybersecurity talent.<\/p>\n\n\n\n \u201cOne of our biggest technical challenges has been keeping pace with the rapid evolution of AI itself,\u201d said Wohns. \u201cThe tools, models, and techniques are improving at an extraordinary rate, which means our architecture needs to be flexible enough to adapt quickly.\u201d<\/p>\n\n\n\n Early customers have responded enthusiastically to Jericho\u2019s approach. \u201cCustomers have been exceedingly frustrated at the lack of innovation with incumbent solutions and the subsequent decline in efficacy,\u201d Wohns noted. \u201cWithin 30 days, customers identify vulnerabilities across multiple channels and build highly personalized and dynamic remediation programs based on contemporary threats and techniques.\u201d<\/p>\n\n\n\n As the boundaries between human and machine communications blur, the very nature of trust in digital environments is being redefined. The executive on a video call, the urgent email from IT support, or the customer service chatbot might not be what they appear. In this new reality, Jericho Security is betting that the best defense isn\u2019t just teaching employees to be suspicious \u2014 it\u2019s showing them exactly how they\u2019ll be deceived before the real attackers get the chance<\/p>\n Daily insights on business use cases with VB Daily<\/strong><\/p>\n If you want to impress your boss, VB Daily has you covered. We give you the inside scoop on what companies are doing with generative AI, from regulatory shifts to practical deployments, so you can share insights for maximum ROI.<\/p>\n \n\t\t\t\t\tThanks for subscribing. Check out more VB newsletters here.\n\t\t\t\t<\/p>\n An error occured.<\/p>\n<\/p><\/div>\n
\n<\/div>Military cybersecurity contract established credibility in competitive market<\/h2>\n\n\n\n
How AI fights AI: Automated adversaries that learn employee weaknesses<\/h2>\n\n\n\n
Singapore CFO loses $500,000 to deepfake executive impersonation<\/h2>\n\n\n\n
New threat horizon: When AI systems attack other AI systems<\/h2>\n\n\n\n
Self-service platform opens access to smaller businesses as attack targets broaden<\/h2>\n\n\n\n
Future-proofing security as AI capabilities accelerate<\/h2>\n\n\n\n
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