When vigilance saves the day: How Y-12 Credit Union stopped a Bitcoin scam
An elderly man walked into Y-12 Federal Credit Union's Oak Ridge, Tennessee, branch late this summer, adamant about withdrawing a large amount of cash. But something felt wrong to the staff who knew him well.
The longtime member wasn't cracking his usual jokes. Instead, he was gruff and evasive, insisting he needed cash immediately. His story didn't make sense. When his favorite employee expressed concern about a possible scam, he told her to hush. His phone was hidden in his pocket, and someone was listening to the entire conversation.
"When the employee said she was afraid this might be a scam, he responded he was ‘more afraid I’m going to lose this deal if I don’t get my cash right away,'" said Stacey Foster, director of compliance and advocacy at Y-12 Federal Credit Union. "His story didn't make sense when he was saying why he was withdrawing the cash."
The employee called Foster, and together they made a crucial decision: use Tennessee's financial exploitation prevention law to pause the transaction overnight.
A cooling-off period makes the difference
The member wasn't happy. He knew what he was doing. He was an adult. It was his money. But Tennessee's Elderly and Vulnerable Adult Financial Exploitation Prevention Act empowers financial institutions to delay transactions for up to 10 business days when they suspect exploitation.
"In Tennessee, we have something called a pause law where we can actually delay a transaction for a bit, especially if we feel like someone is being exploited," Foster explained. "So, we put a little pause on that overnight."
The member left frustrated, certain the credit union was interfering with his urgent need to "protect" his money from hackers, or so the voice on his phone had convinced him.
"The next morning, he was back first thing, not to withdraw his cash, but to thank us," Foster said.
After leaving the credit union, he realized that the branch employees who knew him personally weren't trying to scam him. The voice on the phone, claiming to be from a government agency and directing him to a Bitcoin ATM, was the real threat.
A troubling national trend
The member's near-miss reflects a growing crisis. Americans lost nearly $250 million to Bitcoin ATM scams in 2024, according to the FBI, more than double the previous year.
Scammers typically pose as government officials, law enforcement, or tech support. They create urgency and fear, then instruct victims to withdraw cash and deposit it into cryptocurrency ATMs.
Older Americans age 60 and above reported $4.9 billion in fraud losses to the FBI in 2024, a 43% increase from 2023. Approximately one in 18 cognitively intact older adults are victims of financial fraud or scams each year in the United States.
In a case similar to the Oak Ridge case, earlier in 2025, an 89-year-old member arrived at Achieva Credit Union’s Clearwater branch after receiving a call from someone claiming to be her grandson’s attorney. Teller Jennifer Sgro recognized the unusually large, urgent request, engaged the member in conversation, and then quietly called the grandson—who was safe and unaware of any legal trouble—and the member’s daughter.
Sgro subsequently notified local law enforcement and placed the transaction on hold, effectively blocking the scammer and preserving the member’s life savings.
Credit unions respond collectively
Y-12 Federal Credit Union's intervention reflects how credit unions nationwide are adapting to combat what one compliance expert calls fraud's "viral spread"—schemes that mutate and travel across the country, adapting to find new victims.
Credit unions are responding with collaborative networks that share real-time intelligence about emerging threats. In Maine, the state's Credit Union League partnered with the Attorney General and State Police to create fraud awareness videos, recognizing that in America's oldest state, traditional pamphlets weren't reaching isolated rural members.
Others are innovating member education. Pennsylvania's Armco Credit Union transformed fraud awareness through Halloween costume events and Fraud Bingo, preventing more than $357,000 in fraudulent losses last year by making education engaging rather than forgettable.
When one credit union develops an effective intervention, the entire movement benefits.
Personal relationships drive protection
What saved this member wasn't sophisticated software. It was personal relationships.
"We're about people," Foster said. "Our whole mission is people helping people, and we're here to improve their financial lives."
Y-12 Federal Credit Union, which recently expanded from an eight-county community charter to a common bond charter and acquired a Kentucky bank, maintains the community focus that distinguishes credit unions from other financial institutions. The organization operates a Y-Fi at Work program, providing financial literacy education to employees at member companies, and stays active in community volunteering.
Foster has attended America's Credit Unions' advocacy events for six years, including this September’s Congressional Caucus, bringing real stories to Capitol Hill.
"It's very important to be on Capitol Hill, they don't know credit unions that well," she said. "So, we need to make them aware of the things that we do and what sets us apart."
Education and vigilance
Y-12 Federal Credit Union has made fraud prevention a priority, with a dedicated team that visits branches to educate members about scams. Their fraud awareness campaign won a 2025 America's Credit Unions' Diamond Award in the Financial Education category.
"Fraud is just a huge issue," Foster noted. "We have a team that goes out to our branches and talks to people about fraud awareness and how to respond correctly to things, so they don't get scammed."
The credit union's approach combines education, personal relationships, and Tennessee legal tools. Staff training emphasizes recognizing warning signs: unusual behavior, reluctance to explain transactions, and rushed timelines.
When employees see these red flags in members they know personally, they're empowered to act.
"And it's moments like those that just make us all happy," Foster said. "That's what we're here for."
For Y-12 Federal Credit Union's longtime member, the extra care from his credit union was worth thousands of dollars he didn't lose to scammers. For the credit union staff, it was simply another day of living their mission: people helping people.
Credit union professionals who suspect elder financial exploitation should report it to local law enforcement and Adult Protective Services. Tennessee credit unions can find additional resources at the Tennessee Credit Union League.
