By Homethrive
When credit unions talk about serving older members, the conversation usually centers on retirement products, estate planning, or branch accessibility. However, there is another issue quietly eroding the financial health of your most loyal members: fraud.
Adults age 60 and older reported more than $3.4 billion in losses to fraud in 2023, according to the FBI's Internet Crime Complaint Center; an average of nearly $34,000 per victim. The Federal Trade Commission reports that total fraud losses among older adults quadrupled between 2020 and 2024. Many cases are never reported at all, which means the real toll is almost certainly higher.
For credit unions, these numbers represent members who have banked with you for decades, members whose trust, deposits, and referrals form the backbone of your institution. When a member loses $34,000 to a scam, the damage doesn't stop at their account balance. It shakes their confidence in their own financial judgment, and sometimes in the institutions they assumed were watching out for them.
The scams targeting older adults are engineered to exploit specific vulnerabilities: isolation after losing a spouse, unfamiliarity with evolving technology, or deep-seated respect for authority figures. Credit union staff who understand these patterns are better equipped to intervene before the damage is done.
The most common schemes include the following:
Tech support scams, where fraudsters posing as companies like Microsoft or McAfee request remote device access
Government impersonation, with callers claiming to represent the IRS or Social Security Administration
Grandparent scams, in which a caller pretends to be a family member in urgent trouble
Romance scams built on fabricated online relationships
Investment fraud promising unrealistic returns
Subscription traps that use misleading pop-ups to enroll members in recurring charges
This is where credit unions have a structural advantage. Unlike large national banks, credit unions already have the relationship infrastructure to catch fraud early and help members recover. The question is whether you are using it deliberately.
Here are practical steps credit unions can build into their member protection strategy:
Promote trusted contact designations. Encourage older members to add a trusted contact to their accounts. This gives your team a path to flag concerns without immediately restricting a member's independence. It is a safety net as well as an easy conversation for frontline staff to initiate during routine interactions.
Enable real-time transaction alerts. Offer and actively help members set up text or email alerts for large or unusual transactions. Many members don't know these tools exist. A quick enrollment during a branch visit can mean the difference between catching a fraudulent charge in minutes versus discovering it months later.
Simplify members' financial footprint. Train staff to have thoughtful conversations about consolidating unused cards and accounts. Many older adults carry multiple credit cards accumulated over decades. Each one is an attack surface. Fewer active accounts means less exposure. This also positions your credit union as the primary financial relationship.
Recommend credit freezes as standard guidance. Freezing credit with Equifax, Experian, and TransUnion is free, does not affect credit scores, and is one of the strongest defenses against new accounts being opened fraudulently. This should be part of every conversation about protecting a member's identity, and a preventative (not reactive) strategy.
Train frontline staff to recognize red flags. Noticing unusual withdrawal patterns, sudden wire transfer requests, or a member who seems confused or pressured are moments when a brief, respectful conversation can stop a scam in progress. Staff should feel empowered to pause a transaction and ask questions without fear of offending a member.
Host ongoing fraud education. Whether through branch workshops, newsletter content, or short videos, keep fraud awareness in front of your members consistently. Even a brief mention of a trending scam can reinforce healthy skepticism. Organizations like the AARP Fraud Watch Network provide regularly updated materials that credit unions can share or adapt.
Despite the best prevention, some members will still fall victim to fraud. How your credit union responds in that moment shapes the relationship going forward.
Act fast on the financial side. Freeze or close compromised accounts immediately. Flag suspicious activity, reverse charges where possible, and prevent further withdrawals. The faster your team responds, the more options you have to limit the damage.
Guide them through digital recovery. Advise members to change passwords immediately, starting with email and financial logins. If remote access was granted to a supposed tech support caller, the device should be treated as compromised. Recommend reputable antivirus software and, when necessary, a full device wipe by a trusted professional.
Help them lock down credit. Walk members through placing a fraud alert or credit freeze with the major bureaus. This is one of the strongest protective steps after identity information has been exposed, and many members will not know how to do it on their own.
Support reporting. Encourage members to report the scam to federal authorities – the FTC, the FBI's Internet Crime Complaint Center, and the National Elder Fraud Hotline at 1-833-FRAUD-11. Reporting helps investigators track patterns and may protect others. Offer to help members document what happened: phone numbers, email addresses, dates, amounts, and a summary of the interaction.
Protect their dignity above all. This may be the most important thing your staff can do. Shame is one of the most powerful weapons scammers use. Older members who feel embarrassed are less likely to report what happened, which only increases their future risk. Your team should reassure members that these criminals are professionals trained to create urgency, fear, and misplaced trust. Being targeted is not a sign of weakness or declining competence. A member who feels supported after a scam is a member who stays.
A member who feels judged, along with the family accounts connected to them, is one you may lose.
The strongest fraud protection programs don't wait for a crisis. They build awareness and safeguards into the everyday member experience during account reviews, onboarding conversations, and routine branch visits.
Credit unions that take this seriously will find that, aside from preventing losses, it positions your institution as the kind of partner that members can trust, with their finances and their well-being.
The members who have been with you the longest deserve that courtesy. Further resources to share with members and staff:
National Elder Fraud Hotline: 1-833-FRAUD-11
Connect with Homethrive to learn more.