Sydney | August 2026 – Australian cybersecurity startup Apate.AI has raised US$8.15 million (A$11.4 million) in Seed funding as it prepares to expand its AI-powered fraud defence technology into international markets.
The funding round was led by Lobby Capital, with participation from OIF Ventures, Investible, Concept Ventures and Baobab Ventures.
Apate.AI develops artificial intelligence agents designed to behave like real cyber attackers and engage directly with fraudsters. By interacting with scammers, these AI agents gather intelligence about fraud networks, tactics and emerging attack methods.
The company plans to use the new capital to strengthen its technology platform and accelerate its expansion across North America and Europe.
How Apate.AI Uses AI to Fight Fraud
Rather than simply waiting for fraudulent activity to reach businesses or consumers, Apate.AI takes a proactive approach.
The company’s AI agents are designed to enter fraud networks and interact with scammers while posing as potential victims.
During these interactions, the agents can collect information about how fraudsters operate, including their methods and tactics.
This intelligence can then help organisations understand emerging threats and improve their ability to detect and prevent fraud.
The technology is particularly relevant for industries that face large volumes of scams and financial fraud, including banks, telecommunications companies and government agencies.
AI Agents Designed to Engage Scammers
Apate.AI was founded by Dali Kaafar and Peter Eckermann.
The company develops voice- and text-based AI agents that can interact with suspected fraudsters in real time.
The objective is not simply to identify fraudulent activity but to gather actionable intelligence while consuming the attacker’s time and resources.
According to co-founder and CEO Prof. Dali Kaafar, the approach could give organisations defending against fraud an opportunity to get ahead of emerging threats.
The company says its agents can turn interactions with scammers into intelligence that can subsequently be used to help protect institutions and their customers.
New Funding to Drive International Expansion
The Seed funding will support Apate.AI’s international growth strategy as the company looks beyond its Australian base.
As part of its North American expansion plans, Apate.AI has established a business entity in Delaware.
The company is also opening a new office in London to support its European operations.
Despite its international expansion, Apate.AI plans to retain its research and technology teams in Sydney, maintaining Australia as an important centre for its product development and research activities.
Why AI-Powered Fraud Defence Is Gaining Attention
Fraud networks are becoming increasingly sophisticated, creating challenges for financial institutions, telecommunications providers and government organisations.
Traditional cybersecurity tools often focus on detecting attacks after suspicious activity has occurred.
Apate.AI’s model takes a different route by using AI agents to actively interact with fraudsters and gather intelligence from those interactions.
This approach could provide organisations with additional information about evolving fraud tactics and help them strengthen their defensive systems.
The startup’s technology also reflects a broader trend in cybersecurity: the use of autonomous AI agents not only to detect threats but also to simulate, investigate and respond to them.
Apate.AI Targets Banks, Telcos and Government Agencies
Apate.AI’s platform is designed for organisations that need to understand and combat large-scale fraud networks.
Its target users include:
- Banks and financial institutions
- Telecommunications companies
- Government agencies
- Businesses exposed to fraud and scams
By providing intelligence gathered through AI-led interactions, the company aims to help these organisations better understand how fraud operations work and identify potential threats before they cause greater damage.
What Comes Next for Apate.AI?
With US$8.15 million in new Seed capital, Apate.AI is entering its next stage of growth with an international expansion strategy.
The company plans to strengthen its technology, establish operations in North America and Europe, and continue developing its AI agents in Sydney.
Its approach represents a growing shift in cybersecurity from passive defence toward active threat intelligence, where AI systems can interact with attackers and turn those interactions into useful security data.
As fraud networks continue to evolve, Apate.AI is betting that AI agents can become part of the next generation of tools used to understand and disrupt them.
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Ruchi Kumar is the associate editor at Entrepreneur News Network and TVW News India, where she leads editorial strategy, brand storytelling, and startup ecosystem coverage. With a strong focus on innovation, business, and marketing insights, he curates impactful narratives that spotlight India’s evolving entrepreneurial landscape. She has written extensively on fintech, AI and emerging startups.