Allure Security Raises $17M Series B for Scam Defense
Allure Security, a Boston-based provider of an AI-powered Scam Defense Platform, has raised $17M in Series B funding led by Riverside Acceleration Capital. The platform proactively detects, defuses, and destroys online brand impersonation, phishing, and scams across websites, social media, mobile apps, digital ads, and the dark web. The capital will deepen the AI platform, expand go-to-market efforts, and enter new verticals.
AI Impersonation Attacks Surge 118%
The timing aligns with rising AI-driven threats, as impersonation attacks increased 118% in 2025 per company data. Competitor Memcyco raised $37M weeks earlier in January 2026 for similar anti-impersonation tech. Allure's patented deception technology differentiates by injecting fake data into scam sites to disrupt fraudsters.
FBI Reports $16.6B Cybercrime Losses
Cybercrime losses reached $16.6B in 2024, up 33% year-over-year, with deepfake fraud surging 3,000% according to FBI and company reports. Traditional tools react after scams launch, allowing 90% of damage in the first 18 hours. Financial services face acute pressure, with banks losing 7.5% of revenue to fraud.
Patented Decoys Poison Scam Data
Allure combines AI detection scanning 10 million digital assets daily with expert-led takedowns by a U.S. Special Forces-led team. Its patented deception tech injects fake credentials into scam sites, poisoning fraudsters' data harvests. This preemptive approach stops threats before customer impact, unlike alert-only competitors like ZeroFox ($392M funded) or Bolster AI ($40M funded).
As CEO Josh Shaul noted:
"Our model combines autonomous AI agents with expert human judgment, so we don’t have to choose between speed and accuracy. We deliver both."
Growth Capital Backs Platform Expansion
Riverside Acceleration Capital led the round, joined by Curql Collective, Glasswing Ventures, and Gutbrain Ventures. Riverside focuses on growth-stage B2B cybersecurity like portfolio company ThreatMark. Curql targets fintech security, backing DefenseStorm. This mix signals conviction in Allure's scaling from 350% growth and 300+ customers to broader enterprise adoption.
Disinformation Security Hits $30B
Gartner predicts 50% of enterprises will adopt disinformation security by 2028, driving $30B in spending per Gartner. The brand protection market stands at $2.99B in 2024, projected to reach $7.64B by 2032 at 12.8% CAGR according to Fortune Business Insights. Allure positions ahead with full-cycle defense amid competitors like BrandShield ($20M funded) and Red Points ($85M funded).
DARPA Pioneers Lead Cybersecurity Spinout
Founder Salvatore J. Stolfo, IEEE and ACM Fellow, spun out tech from his Columbia University lab originally funded by DARPA for DoD use. Co-founder Angelos Keromytis, ex-DARPA program manager, adds threat attribution expertise. New CEO Josh Shaul brings Akamai web security experience, complemented by execs from Proofpoint and McAfee.
Takedowns Scale to New Verticals
With total funding at $43M, Allure plans AI enhancements, sales expansion, and vertical growth beyond finance. Partnerships like Jack Henry Banno integration and DefenseStorm signal ecosystem momentum. Customers including The Kraft Group and Palo Alto Networks validate the platform's 5-star Gartner Peer Insights ratings.