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Jericho Security, a cybersecurity firm based in New York, has announced the successful closure of a $15 million Series A funding round, aimed at enhancing its AI-driven cybersecurity training platform. This announcement follows a notable achievement where the young company effectively executed a $1.8 million contract with the Department of Defense, elevating its status within the cybersecurity sector.
“Today’s sophisticated attackers can swiftly craft voice clones mimicking your CFO, potentially requesting urgent fund transfers,” remarked Sage Wohns, co-founder and CEO of Jericho Security, during an exclusive discussion with VentureBeat. “Conventional cybersecurity training measures are failing to keep up with such evolving threats.”
The recent funding round was led by Jasper Lau at Era Fund, who had previously supported the company’s $3 million seed round in August 2023. Other investors included Lux Capital, Dash Fund, Gaingels Enterprise Fund and Gaingels AI Fund, along with Distique Ventures and Plug & Play Ventures, among others.
Military cybersecurity contract established credibility in competitive market
Jericho Security gained significant visibility after being chosen for a contract to innovate defense strategies for the Pentagon last November. The $1.8 million project, facilitated through AFWERX, the Air Force innovation unit, tasked Jericho with creating safeguards for military personnel against increasingly intricate phishing attempts.
“There was a major spear-phishing incident targeting drone pilots, involving counterfeit user manuals,” Wohns pointed out in a prior interview. This incident highlighted how even well-trained individuals can be susceptible to expertly crafted fraudulent tactics.
The federal contract positioned Jericho favorably in a competitive landscape dominated by established companies like KnowBe4, Proofpoint, and Cofense. Analysts estimate the security awareness training market to be worth $5 billion annually, with projections suggesting a rise to $10 billion by 2027 as more organizations become aware of their human security vulnerabilities.
How AI fights AI: Automated adversaries that learn employee weaknesses
Jericho’s training platform sets itself apart by utilizing what Wohns describes as “agentic AI,” a form of autonomous technology that emulates the tactics of real attackers.
“If an employee overlooks a dubious email, our system may follow up with a text message that seems to originate from their manager,” Wohns elaborated. “Our AI evolves based on user behavior, identifying the most effective methods to target individuals.”
This multi-dimensional approach addresses a glaring shortfall of typical security training programs, which often prepare employees for past threats rather than potential future attacks. Jericho’s simulations encompass various communication channels, creating tailored attack scenarios shaped by an employee’s role, conduct, and past interactions.
Furthermore, the client dashboard allows organizations to identify which employees are more vulnerable to specific attacks, enabling focused response strategies. Preliminary findings reveal that employees engaged in adaptive, AI-centric training demonstrate a 64% lower likelihood of succumbing to genuine phishing threats compared to those receiving standard training.
Singapore CFO loses $500,000 to deepfake executive impersonation
The financial implications of these emerging threats were starkly illustrated by a case shared by Wohns, detailing how a CFO was misled by AI-generated representations of corporate executives.
“A CFO from Singapore was tricked into transferring approximately $500,000 during a video conference with what appeared to be their CEO and other senior leaders,” Wohns explained. “Unbeknownst to the CFO, these figures were deepfake avatars created using publicly accessible video and audio resources.”
The incident initiated with a seemingly benign WhatsApp request for an urgent Zoom meeting, during which the deepfake avatars convinced the CFO to authorize the transaction. Only when further attempts for additional funds raised alarms did authorities become involved, ultimately recovering the initial amount.
Such occurrences are increasingly frequent. As reported by Resemble AI’s Q1 2025 Deepfake Incident Report, financial losses attributed to deepfake-related fraud surpassed $200 million globally in the first quarter of 2025 alone. The report highlighted that North America accounted for the highest percentage of incidents (38%), followed by Asia (27%) and Europe (21%).
Reports indicate an astronomical rise in deepfake fraud attempts, with certain analyses showing increases exceeding 1,700% in North America and more than 2,000% in various sectors within Europe.
New threat horizon: When AI systems attack other AI systems
Wohns has pointed out another troubling trend in cybersecurity: the concept of “AI agents phishing AI agents.”
“With the rise of AI tools across various corporate functions, from customer service bots to internal automations, attackers now aim at these very systems,” he noted. “It shifts the threat landscape, as it is no longer just humans being deceived but also AI systems themselves that may become targets or unknowing accomplices in attacks.”
This transformation signifies a crucial alteration in the cybersecurity framework. Deploying AI assistants capable of interacting with internal systems introduces new vulnerabilities that traditional security measures fail to mitigate.
Self-service platform opens access to smaller businesses as attack targets broaden
While large enterprises have historically been the primary focus for advanced attacks, smaller businesses are increasingly becoming common targets for cybercriminals. To address this shift, Jericho has unveiled a self-service platform enabling organizations to implement AI-driven security training without the lengthy enterprise sales cycle.
“Our self-service model complements our enterprise sales strategy,” Wohns explained. “It facilitates a no-touch or low-touch experience for small to medium-sized businesses.”
With a seven-day free trial available, users can sample the product without the need for sales engagements. This strategy deviates from traditional practices, where cybersecurity products typically involve protracted procurement phases and intensive sales interactions.
Future-proofing security as AI capabilities accelerate
The newly acquired $15 million will primarily be allocated to three key areas: advancing research and development, enhancing go-to-market strategies through partnerships, and expanding Jericho’s workforce to include more experts in AI and cybersecurity.
“One of the most pressing technical challenges we face is keeping up with the rapid pace of AI advancement,” said Wohns. “Given the extraordinary speed at which tools and models evolve, our architecture must be agile enough to adapt on the fly.”
Early feedback from clients has been overwhelmingly positive regarding Jericho’s innovative approach. “Customers often express their frustration with the stagnation of existing solutions, which have resulted in declining effectiveness,” Wohns observed. “In just 30 days, clients can uncover vulnerabilities across multiple channels and develop highly tailored response strategies based on current threats and tactics.”
As the lines between human and machine communications blur, the nature of trust in online interactions is being fundamentally redefined. Whether it’s an executive in a video call, an urgent email from an IT team, or a customer service chatbot, things are not always as they appear. In this evolving landscape, Jericho Security is championing the view that the most effective defense is not merely educating employees to be wary, but actually demonstrating how they can be misled before real threats materialize.
Source
venturebeat.com