WYANDOTTE, Mich.–Three years after Michigan Legacy Credit Union launched a pilot program with the Institute of Gerontology at Wayne State University that sought to identify potential fraud and exploitation of vulnerable and older adult members, the credit union is reporting that year-over-year data show it is working. 

“Our standards department requires all cases of potential fraud be documented and submitted to our internal audit department,” President and CEO Carma Peters said in a statement.  “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.”

170 Staff Members Trained

According to Michigan Legacy, 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). 

MLCU said training is mandatory for all credit union employees, regardless of their role or department. 

The credit union said it also continues to offer the IOG’s Financial Vulnerability Survey – a short questionnaire created by Dr. Peter Lichtenberg to determine the risk of financial exploitation – to new members aged 50+. During April, which is 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 interactions as outlined below that MLCU staff members have had with members, thwarting the exploitation or stopping it from escalating.

‘Not Normal’

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,” the credit union reported. “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. “

Told to Purchase Gift Cards

Michigan Legacy reported a member came to its 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. 

MLCU said its 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.

Trying to Collect a ‘Debt’

In Wyandotte, a well-known member said a debt collection agency was trying to collect a debt. MLCU said its 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,” the credit union said. 

‘Daughter in Jail’

At the Warren branch, MLCU reported 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,” the credit union said. “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.”

Swindlers Just Waiting

“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 o in a statement. “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 acknowledged that when an older individual falls victim to manipulation, it can be challenging to convince them they are being victimized.

‘Fear & Panic’

“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’ statement continued. “The training from the IOG has helped us better frame probing questions that get a response without making the member feel foolish.”

The credit union reminded that members of any age can be targeted by similar scams.