Online security is a perfect example of consumer demand that’s constantly receptive to solutions from new corporations. BillGuard first presented to the public its anti-fraud security system in 2011. The startup company has recently raised $10,000,000 for expansion of its service after getting launched with $3,000,000 in an earlier financing round.
BillGuard permits credit card and debit card users to register their accounts for monitoring of potentially fraudulent activity. The service detects questionable transactions using payment analysis and a crowdsource method that tracks billing complaints.
The capital markets are apparently attracted to operations like BillGuard that use a bottom-up approach to solving diagnostic problems. The company’s technological advantages are a direct consequence of its innovative process for addressing a complex issue. The business attained investor attention from tackling the online security problem by looking first at the customary consequences and then using that information to identify new potential cases of the problem.
Since the launch of its service earlier this year, BillGuard is free to anyone who signs up online. But, profitable business models are on the horizon. The company has approached large banks for partner arrangements that include BillGuard as a choice of customer service for a small fee. In addition, BillGuard is exploring the concept of a merchant certification program that allows some merchant access to the company’s data and collects customer reports of subsequent charges that are fraudulent or questionable.