How one credit union’s vigilance stopped a scam
A new America’s Credit Unions blog post details how a quick-thinking teller at Y-12 Federal Credit Union helped stop a longtime member from becoming the latest victim of a fast-growing national scam. The post highlights the crucial role credit unions and the credit union difference can play in protecting older Americans from financial exploitation.
At Y-12’s Oak Ridge, Tenn., branch, a teller grew suspicious when a usually cheerful elderly member was gruff and insistent on withdrawing a large sum of cash. When his story raised scam concerns, the credit union used Tennessee’s Elderly and Vulnerable Adult Financial Exploitation Prevention Act to pause the transaction overnight. When they opened the next morning, the member was there—not to complete the transaction, but to thank staff for stopping him. A scammer had convinced him to make the withdrawal and had him hide his cell phone in his pocket so they could monitor his conversation at the credit union.
Fraud that targets older adults is surging nationwide. Credit unions report schemes are spreading “virally,” mutating faster than traditional education methods can often counter.
But the industry is responding with coordinated fraud-prevention efforts, from real-time information-sharing networks to community education campaigns. In another case this year, a teller at Achieva Credit Union in Florida halted an 89-year-old member’s urgent withdrawal after confirming a supposed legal emergency was fake.
Credit unions’ personal connections to their members provide a strong defense.
At Y-12, knowing their members is essential to fighting this kind of fraud. “We’re about people,” said Stacey Foster, the credit union’s director of compliance and advocacy. “Our whole mission is people helping people.”