By: Derrick Smith

October may be Cybersecurity Awareness Month, but there’s never a bad time for credit unions to educate their members on how to avoid financial abuse and keep their finances safe. This is particularly important for older members, as they are often the targets of scammers.

A 2023 Gallup poll asked Americans how much they worry about various types of crime. The results showed people most often worried about identity theft. Being tricked by a scammer into sending money or providing access to a financial account was the second-highest concern.

There’s plenty of legitimacy for these concerns. Last year, an interagency statement on elder financial exploitation from the NCUA revealed annual losses from older Americans because of financial exploitation are estimated at $28.3 billion. And, from 2020 to 2024, the number of reports from older adults who lost $10,000 or more to scams like fake security alerts and other false alarms more than quadrupled.

I believe credit unions have the responsibility to serve as a strong source of protection against financial abuse. Not only that, credit unions are uniquely positioned to identify financial abuse at the outset, before any members are adversely affected.

As the COO of CU*SOUTH, a 100% credit union-owned CUSO, I’ve seen credit unions deploy all sorts of tactics to educate and protect their members. Here’s a simple playbook to launch (or enhance) a member-safety program that your team can use to safeguard members.

1. Stand up a small “member safety” squad

First, put together a small-but-nimble squad that can lead your institution in the fight against financial fraud. Add members from operations, branch/remote delivery, legal/compliance, and IT. Give them a clear purpose, and let them develop an action plan that includes educating members, stopping suspect transactions and closing the loop with reporting. Designate a point of contact on the squad so your staff knows exactly where to go when something feels off.

2. Train your staff

It’s crucial to make scam literacy part of onboarding new staff and an important segment of your regular training. Here are two methods to help get the job done:

• Frontline training: I recommend short, scenario-based modules and quick refreshers each month. Keeping the training fresh will keep your staff more engaged.
• Annual certification: Pick a recognized program with a good framework and track staff completion.

Here are two free, credible resources that you can use to get certified and stay up to date on the latest scams:

• AARP BankSafe: This is a no-cost, role-specific training for financial institutions. Research tied to the program found big gains in staff confidence and dollars protected.
• DOJ Elder Justice “Senior Scam Alert”: This includes plain-language rundowns of active schemes that you can use for internal training or member communications.

3. Give staff permission to “pause and protect”

Some states have passed laws that allow (or require in some cases) financial institutions to hold transactions if they suspect, or are told, that financial exploitation may be occurring. These laws usually only apply to transactions involving older adults or adults who may be otherwise deemed to need additional protection.

If these laws apply to your credit union, you need a written policy that empowers employees to slow or refuse a transaction when red flags appear. Make sure the policy defines:

• What the red flags are (rushed wires, secrecy demands, unusual new devices, etc.);
• What to say to members (e.g., “Let’s verify this together.”); and
• Who approves next steps.

The previously mentioned interagency statement on elder financial exploitation backs robust internal controls, training, and detailed internal communication, all of which will be helpful when you socialize the policy.

4. Make member education a hands-on experience

Posters and PDFs certainly help, but nothing beats direct conversations with members when it comes to spreading the word about financial safety. Here are some things to try:

• Quarterly workshops in-branch and on Zoom that teach members how to be safe.
• One-page takeaways at the teller line (and via email) with the three most common schemes this season.
• Proactive account hygiene. For example, when members are in the branch, walk them through how to add beneficiaries or trusted contacts to their accounts, enroll in transaction alerts and review card-control features.

For research-backed materials and policy guidance, check out the National Center on Elder Abuse. It’s a hub for training, research and best practices you can adopt easily.

5. Communicate clearly and quickly

It helps to create a process to quickly identify any suspected scam, something like a 24-hour “rapid note” template that captures all the important details, like date, contact channel, script highlights, next steps, outcome, etc. Route the note to the Member Safety squad for escalation. Once the dust settles, close cases with a call to the member to keep them informed. Doing this will build trust.

If you’d like additional help or resources for protecting your older members, our CU*SOUTH team is happy to share what we use with our clients. We’re all working toward the same goals, which are fewer losses, calmer members, and a trained staff that knows exactly what to do when a questionable situation arises.

View full article on CUInsight.com.

Derrick Smith serves as Chief Operating Officer at CU*SOUTH, where he drives the organization’s operational strategy and ensures day-to-day processes run smoothly. He oversees cross-departmental collaboration, aligning teams with the company’s strategic vision to nurture sustainable growth. Under his leadership, CU*SOUTH delivers streamlined solutions that empower credit unions to streamline operations and boost member engagement.