Expanding its Network and Enhancing Protection: Carefull Secures $16.5 Million in Series A Funding
Fintech platform Carefull has successfully raised $16.5 million in a recent Series A funding round led by Fin Capital, with participation from TTV Capital, Bessemer Venture Partners, Commerce Ventures, Montage Ventures, and Northwestern Mutual. With this latest capital injection, Carefull’s total funding now stands at $19.7 million.
Key Takeaway
Carefull, a fintech platform aimed at protecting seniors from financial fraud, has secured
6.5 million in Series A funding. The funding will enable Carefull to expand its network, develop its product further, and integrate with additional wealth and banking customers. Carefull’s platform scans financial accounts for signs of financial exploitation, offering a range of services to combat fraud and provide peace of mind to seniors and their caregivers. By partnering with banks, Carefull aims to reduce customer attrition and enhance protection against fraud.
As the digital landscape continues to grow, so do the threats faced by older adults. Carefull aims to combat these challenges by offering a suite of services designed to protect seniors from financial fraud, scams, and “money mistakes.” With the ongoing COVID-19 pandemic requiring families to manage financial matters digitally, the demand for Carefull’s services has surged.
Carefull’s co-founder and CEO, Todd Rovak, explained that the funding will be used to expand the company’s network of partners and further develop its product. Carefull also aims to integrate with additional wealth and banking customers, enabling even more seniors to benefit from its platform.
The Vulnerability of Seniors to Financial Exploitation
Seniors are particularly vulnerable to financial fraud and scams due to various reasons, including their socioeconomic status and health conditions. According to studies, older individuals lose anywhere from $2.9 billion to $36 billion each year as a result of financial exploitation.
Rovak acknowledges that there is no one-size-fits-all solution to combatting money scams targeting older adults, with many scams often perpetrated by individuals known to the victims, such as family members, friends, or advisors. However, Carefull aims to provide a valuable tool in the broader arsenal of fraud prevention technology.
Carefull’s Platform and Approach
Carefull’s platform scans customers’ financial accounts for issues unique to aging, focusing on activity that might indicate financial exploitation. Through partnerships with banks and asset managers, Carefull develops models to identify anomalous financial and behavioral patterns, while also addressing specific regional issues.
What sets Carefull apart is its focus on cutting-edge aging research, particularly the relationship between cognitive decline and financial transactions. Research has shown that money problems can be early indicators of certain neurological disorders.
In addition to algorithmic monitoring, Carefull provides a range of services, including quarterly reviews of home titles for signs of fraud and tampering, identity and credit monitoring, assistance with canceling and negotiating bills, and $1 million in identity theft insurance.
Carefull offers individual customers two subscription options, priced at $29 per month or $299 per year. Advisors and wealth managers can also subscribe to Carefull Pro, an enterprise plan that allows them to offer Carefull’s services to their clients free of charge.
Reduced Attrition and Enhanced Protection
By partnering with banks, Carefull aims to reduce customer attrition, fraud write-downs, and resolution expenses. This approach has resonated with financial institutions, as Carefull already boasts over 35 customer institutions and partners.
Max Goldman, co-founder of Carefull, emphasizes the growing necessity for a safer platform to manage the financial activities of aging parents. With more Americans taking on the responsibility of handling the daily money issues of elderly relatives, Carefull seeks to provide a secure space for these activities.
Looking ahead, Rovak plans to double Carefull’s employee count from 25 to 50 within the next 12 months, reinforcing the company’s commitment to protecting seniors from financial fraud and providing peace of mind to caregivers.
