Socratix AI Inc., a startup building autonomous artificial intelligence coworkers for fraud and risk teams, announced today that it has raised $4.1 million in funding to expand participation in fraud and risk industry organizations and support product research and development.

Founded earlier this year, Socratix AI is focused on developing autonomous AI coworkers designed specifically for fraud and risk teams in banks and fintechs. The coworkers help financial institutions combat modern, AI-powered fraud, such as where fraudsters are increasingly using automation, synthetic identities and generative AI to mount attacks that legacy detection systems can’t keep up with.

Socratix AI’s platform aims to automate the investigatory workload that typically bogs down fraud teams, such as gathering relevant data, mapping relationships, surfacing anomalies and constructing initial case narratives. The idea is that analysts are freed to make the higher-order judgment calls, such as whether to freeze an account, escalate to legal, issue a chargeback refund or adjust controls.

Early customer outcomes reportedly show dramatic improvements, with investigations that used to take a full day now being able to be completed in 15 minutes and credit card reactivations that took hours are now done in minutes.

The company’s platform is designed to handle large-scale, enterprise-grade data, including petabyte-scale logs, transaction streams, identity graphs and device telemetry.

The autonomous agents integrate with existing fraud/risk stacks in banks and fintechs, ingesting alerts from legacy systems, mapping to other data sets, applying their AI models and producing decision-ready outputs.

Notably, Socratix AI emphasizes real-time resolution and explainability, which is key in regulated financial environments where auditability and interpretability of decisions matter.

“Fraud analysts are drowning in manual work while fraudsters are scaling with AI,” explains Riya Jagetia, co-founder and chief executive of Socratix AI. “We’re building AI coworkers that take on the repetitive investigation work, so analysts can focus on making the judgment calls that protect financial systems and customer trust.”

The seed round was led by Pear VC, with Y Combinator, Twenty Two Ventures, Transpose Platform Inc. and a notable group of unnamed strategic angel investors also participating.

“Socratix is building AI coworkers that make those teams faster, smarter and more resilient,” said Ryan Sells, a partner at Pear VC. “We’re proud to back them as they help define the next era of agentic software in financial services.”

Image: Socratix AI