Wyandotte, MI (April 10, 2025) |
Three years ago, Michigan Legacy Credit Union (MLCU) launched a pilot program with the Institute of Gerontology at Wayne State University to identify potential fraud and exploitation of vulnerable and older adult members. President and CEO Carma Peters says year-over-year data captured by MLCU’s internal auditors confirm the program is working.
“Our standards department requires all cases of potential fraud be documented and submitted to our internal audit department,” Peters said. “From 2022 when our program was introduced to 2024, the number of reported incidents dropped by more than 50%. We are vigilant in tracking this data and are confident the drop is a direct result of training our staff to recognize signs of financial exploitation, which is more likely to occur with older members.”
Since the program began, approximately 170 staff members have been trained to identify and discuss cognitive risk factors before exploitation occurs. The training is repeated each year with applicable updates provided by the Institute of Gerontology (IOG). Training is mandatory for all credit union employees, regardless of their role or department. The credit union also continues to offer the IOG’s Financial Vulnerability Survey - a short questionnaire created by Peter Lichtenberg, Ph.D., to determine the risk of financial exploitation - to new members aged 50+. In April – Financial Literacy Month – the survey is sent to all members, regardless of age.
Peters said financial exploitation experienced by older members can take several forms and includes the following interactions that MLCU staff members have had with members, thwarting the exploitation or stopping it from escalating.
-
- At the Wyandotte branch, an older member requested to withdraw a large amount of cash, which was not normal for her. The team asked her what it was going to be used for, and she could not provide a straight answer, so instead of cash, they provided the amount in a cashier’s check. She left the building at that point, but returned approximately 30 minutes later and said someone from MLCU was on the phone saying her account was compromised and that she needed to withdraw all of her funds – hence the large withdrawal request. Knowing that it was not MLCU, they called the fraudster, and the member ultimately did not lose any money.
- A member came to the Pontiac branch and said someone had called her and told her that her account had been compromised, and she needed to withdraw $20,000. She also said they told her to purchase gift cards and then give them the numbers on the cards. She purchased four Sephora gift cards for $500 each totaling $2,000. The MLCU team immediately recognized the scam and explained the situation to the member. She did not withdraw her money and did not give the scammers the gift card information.
- In Wyandotte, a well-known member said a debt collection agency was trying to collect a debt. The team suggested she reach out to the actual debt collection agency to confirm. Not surprisingly, there was no record of a debt, preventing an unnecessary withdrawal and fraudulent payment to the imposter agency.
- At the Warren branch, a member wanted to withdraw all of her money. She said the police called, saying her daughter was in jail and she needed to pay $3,000 to bail her out. They told her that her daughter had been in an accident and had broken her nose, and the member heard someone crying in the background of the call. When a MLCU employee asked additional questions, she then informed the member that the police wouldn’t be calling to collect money. The employee suggested the member call her daughter, but her daughter did not answer, so she then suggested calling her son-in-law. The daughter was with her husband and perfectly fine.
“Part of understanding financial literacy is recognizing that there are swindlers just waiting to take your money. Through this collaboration and specialized training provided by the Institute of Gerontology, our staff is better equipped to identify and prevent exploitation and fraud, especially targeting older adults,” Peters said. “We’ve seen the statistics play out with our members, showing that older individuals are more frequently affected by financial fraud. From imposters to personal care attendants urging ailing adults to withdraw large sums of money to romantic liaisons where money is the main attraction, our team is on heightened alert and trained to use every resource we have to avoid fraud from occurring.”
Peters admits that when an older individual falls victim to manipulation, it can be challenging to convince them they are being victimized.
“Fear and panic often take hold, as they have been deeply influenced by the perpetrator. In some cases, long-time members who have trusted us for decades suddenly become unwilling to listen to reason,” Peters said. “The training from the IOG has helped us better frame probing questions that get a response without making the member feel foolish.”
Peters added that while older members are usually the target, people of any age can be financially exploited, so it’s important everyone stay vigilant. She willingly offers all of their training and marketing materials to other financial institutions to start a similar program. The Financial Vulnerability Survey is accessible to any financial institution, as well as any caregiver or family member. Learn more at OlderAdultNestEgg.com.
