Carefull Raises $16.5M to Protect Seniors from Financial Fraud

The fintech platform Carefull recently raised $16.5 million in a Series A funding round. The round was led by Fin Capital and included TTV Capital, Bessemer Venture Partners, Commerce Ventures, Montage Ventures, and Alloy Labs. With this latest funding, the total investment in the company has reached $19.7 million.

Carefull, co-founded by Todd Rovak and Max Goldman in 2019, seeks to help banks protect older customers from financial scams, fraud, and money mistakes. The new funding will be used to expand the New York-based company’s network of partners, develop further products, and integrate with additional wealth and banking customers.

The Rising Threat of Digital Fraud

Rovak has noted the increase in threats to older adults due to the rise in digital channels usage. This was exacerbated by the COVID-19 pandemic, forcing families to assist with and coordinate financial issues digitally. Studies have estimated that seniors lose between $2.9 billion and $36 billion each year due to financial exploitation.

Carefull’s platform scans customers’ financial accounts for signs of potential financial exploitation. It works with partner banks and asset managers to identify irregular financial patterns and behaviors. It also identifies geographically local issues relevant to particular partners, such as a mortgage scam in the Northeast.

A Tool for Fraud Prevention Technology

Goldman believes that Carefull’s unique focus on cutting-edge aging research sets it apart from other fintech platforms. The company’s focus includes looking at the relationships between cognitive decline and financial transactions. Research has shown that money problems could be an early warning sign of specific neurological disorders.

Carefull also provides additional services including a quarterly review of home titles for signs of fraud, identity and credit monitoring, assistance with bill negotiation and cancellation, and $1 million in identity theft insurance. The platform costs $29 per month or $299 per year for individual customers. Advisors and wealth managers can subscribe to an enterprise plan known as Carefull Pro which allows them to offer Carefull to their clients free of charge.

The fintech platform already has over 35 customer institutions and partners. Rovak’s proposition to partner banks is that Carefull can help reduce customer attrition, fraud write-downs, and resolution expenses.