August 23, 2013
Scammers and phishers find a way to access your hard earned savings. In the case of the elderly this is quite true. True Link a Y Combinator funded Startup, planning to cash in on this unique business opportunity by targeting the elderly in the USA. True Link was launched in August, 2013 to help families avoid being scammed by equipiing prepaid Visa cards with personalize fraud protection.
On inquiring about the reason behind starting off this initiative, CEO Kai Stinchcombe said he saw a business opportunity arise from seeing his grandmother write about 75 checks a month for scammers posing as charities. Once a check is written by the elderly and processed by the bank, banks cannot refund the money back to the user.
True Links wants to authorize any transactions initiated by the elderly so that the elderly don’t lose their savings money. All of the payments initiated go through a pre-paid True Link Visa card which has a user’s checking account details on it. True Link takes up the role of a pre-authorizer and approves or denies any transaction related requests.
True Link offers a custom credit card to the elderly that is free for usage in the first year and is charged $20 annually thereafter.
In terms of scaling up, True Link plans to scale up by partnering with retirement homes & care giving organizations.
LTP View: Elderly in USA like to have financial independence and take control of how they want to spend their retirement money and time. By taking an authoritative role True Link may not appeal to its target audience unless the elderly have faced some security related problems in the past. But the fraud detection and prevention is the right area to attach. True Link could also do this for the rest of the masses.