3. Responding With Clarity and Compassion A fast and empathetic response is critical following a fraud incident. Banks and credit unions should have clear procedures in place to support victim response plans, including measures around: • Freezing or closing affected accounts • Reissuing account credentials and payment cards • Assisting with dispute processes and documentation • Communicating directly with law enforcement when appropriate Empowering front-line employees to handle these cases with care can help ease client anxiety and reestablish trust during a particularly vulnerable time. 4. Supporting Financial Recovery While banks and credit unions often must reimburse clients for unauthorized transactions, many fraud cases involve victims being tricked into authorizing payments. In these situations, reimbursement is not always guaranteed. Still, financial institutions can support victims with the following meaningful actions: • Assist With Regulatory Reporting: Help victims file official complaints with the FTC, the FBI or the Consumer Financial Protection Bureau (CFPB). These reports establish a record of the incident and contribute to broader fraud tracking efforts. • Work With Law Enforcement and Other Financial Institutions: Cooperate with authorities and peer institutions to trace stolen funds and flag suspicious accounts. Swift action can help contain damage and may lead to partial recovery. • Provide Recovery Resources: Refer victims to identity theft protection services, legal aid or nonprofit support organizations. These resources can help clients manage credit impacts and protect against future fraud. Even when full financial recovery is impossible, these steps demonstrate a commitment to care and accountability. Institutions prioritizing fraud victim support during recovery reinforce trust and deepen client relationships. 5. Sustaining Support Beyond the Incident Helping a client through the immediate fallout of fraud is the first step. Ongoing protection is key to rebuilding confidence. Financial institutions can offer continued support through: • Identity theft monitoring • Credit and account activity alerts • Help with placing credit freezes • Referrals to advocacy groups for seniors or other vulnerable individuals Staying engaged after the crisis helps banks and credit unions show they are not just financial service providers but also long-term partners in their clients’ security and peace of mind. Making Victim Support a Shared Responsibility An effective response to fraud must involve collaboration across internal teams. Anti-money laundering (AML), information technology, fraud prevention and client service departments should operate under a unified plan to ensure quick and coordinated action. Regular training and updates on emerging fraud trends are essential. Equally important is leadership support. Institutions that invest in fraud prevention tools, adequate staffing and client education signal that fraud victim support is not a side function but a core priority. Turning Crisis into Opportunity Fraud response efforts should be viewed as risk mitigation and opportunities to lead with purpose. Financial institutions can demonstrate their commitment to ethical banking and social responsibility by standing with victims and guiding them through recovery. Banks and credit unions that take fraud victim support seriously will be better positioned to retain loyal clients, enhance their brand reputation and serve as trusted pillars in their communities. Terri Luttrell is a seasoned AML professional and former director and AML/OFAC officer with over 20 years in the banking industry, working both in medium and large community and commercial banks ranging from $2 billion to $330 billion in asset size. 9 Colorado Banker
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