- There is an increase in the creation of niche financial products designed to provide financial protection to vulnerable groups.
- Elderly adults and teenagers are among the groups most affected by fraud and scams.
Financial fraud perpetrated against elderly adults has become an increasing social problem. According to the FBI, losses from scams targeting elderly people in the United States exceeded 3 billion dollars in 2023 alone, and that number continues to rise. In Latin America, there are also some statistics:
A study revealed that 24% of elderly people scammed in Brazil reported losing more than 800 dollars. Additionally, 31% of respondents in both Brazil and Peru indicated that they lost money due to investment scams.
21% of the victims did not receive any help from their bank, family, or the police after the scam.
Digital channels represent 51% of the total losses due to fraud in Latin America, surpassing fraud in in-person interactions for the first time.
In the industry, these tools are defined as “protected banking,” “financial custody solutions,” or “financial inclusion products with assistance.” But beyond small conceptual differences, financial sector companies are seeking innovative solutions to provide financial protection to vulnerable users.
Market analysts, such as Juniper Research, propose the term “Vulnerable Consumer Fintech,” highlighting its dual focus on inclusion and security.
True Link Financial
True Link Financial, a fintech based in San Francisco, has developed a debit card with specific spending controls for people with dementia, cognitive deficits, or addiction issues.
This product not only mitigates risks but also opens a debate about how the financial sector is adapting to urgent social needs. The tool allows the elderly person’s family members or caregivers to set spending limits by category (such as stores, cash withdrawals, or online purchases), block transactions in real-time, and receive alerts about suspicious activity. For example, if a user attempts an unusual transfer or a purchase at an unusual location, the system detects it and notifies the administrator.
Additionally, the card prevents unauthorized recurring charges, a common issue in cases of gambling addiction or compulsive shopping.
There are other similar experiences worth mentioning.
Companies like Carefull (formerly called Balance Financial) offer account and card monitoring with alerts for risky transactions, focused on elderly adults.
Also, EverSafe combines fraud surveillance technology with detailed reports for families and caregivers.
Looking at the other end of life, Visa Buxx is a tool designed to protect teenagers, with a focus on controlled spending.
Financial institutions and healthcare companies could assess how to integrate these tools into their portfolios, not only as a value proposition but also as an ethical and competitive differentiator