realism and details make it alarmingly easy to convince the victim to send funds immediately, without stopping to verify the story. The nature of AI-driven elder fraud has made it more difficult to detect using traditional red flags. What once might have seemed suspicious can now appear legitimate, making staff training and innovative detection systems even more essential. What Financial Institutions Can Do Now Banks and credit unions are uniquely positioned to safeguard older adults through technology and personalized service. Here are some key actions institutions can take to prevent their clients from becoming victims: • Employ Robust Fraud Detection Software: Enhance fraud monitoring systems to flag unusual activity on accounts held by older adults, typically aged 60 and above. Use tailored parameters to detect anomalies like sudden large wire transfers, frequent ATM withdrawals or new payees that do not align with the client’s typical behavior. These targeted settings improve your institution’s ability to catch early signs of AI-driven elder fraud and take timely action. • Train Employees To Recognize New Scams: Equip front-line staff and fraud teams with practical training to identify signs of AI-driven elder fraud. These signs can include clients who appear anxious, confused or unusually secretive during large transactions, or those referencing family emergencies with limited or inconsistent details. Staff should know how to respond empathetically, ask clarifying questions and escalate concerns when needed. Regular training helps teams stay alert to evolving scam tactics and reinforces a culture of prevention. • Clarify Communication Protocols: Remind clients, especially seniors, that your institution will never request sensitive information like passwords or social security numbers by phone, email or text. Understanding communication methods is critical as AI-driven scams increasingly use cloned voices and urgent messages to pressure victims. Make it clear that legitimate staff will not use threats or demand immediate action. Encourage clients to hang up, verify requests by calling a published number and ask questions. Reinforcing this message during visits, alerts and outreach helps build confidence and reduce the risk of fraud. • Build Trust Through Relationships: Strong relationships with long-time clients are key to spotting and preventing fraud. Encourage staff to visit clients when something feels off, using a conversational tone to avoid alarming or upsetting the client. For example, saying, “That’s a larger transaction than usual. Is everything okay?” can open the door for a helpful discussion. Building trust before issues arise makes it easier to address concerns if signs of elder fraud appear later. Understanding Regulatory Expectations Financial institutions are expected to play a central role in identifying and reporting elder financial abuse. With AI-driven elder fraud rising, examiners and enforcement agencies may scrutinize how effectively institutions adapt to emerging typologies. The Financial Crimes Enforcement Network (FinCEN) has named fraud one of its national AML/CFT priorities, emphasizing the importance of proactive detection and reporting. Filing a suspicious activity report (SAR) is just one component; maintaining a culture of vigilance and continuous training is equally critical. Institutions integrating fraud detection with anti-money laundering (AML) processes are better positioned to respond quickly to evolving threats. AI and machine learning can enhance monitoring by identifying unusual behavioral patterns that are common in modern fraud cases. While operational functions may remain separate, collaboration between fraud and AML teams is essential. Working in silos is no longer effective in detecting complex, AI-driven fraudulent activity. Community Education Can Prevent Losses Technology is essential, but it is not the only solution. Many cases of AI-driven elder fraud can be avoided through targeted education and outreach. Consider hosting in-person fraud awareness sessions at senior centers, places of worship or branch locations, where trusted staff can explain how fraudsters use AI to manipulate voices, images and personal information. Partnering with local organizations or law enforcement can add credibility and help reach broader audiences. Institutions can also distribute printed guides or quick-reference tip sheets that walk through common scam scenarios, what to look out for and how to respond. Posting short educational videos on your website or sharing alerts through account notifications and email campaigns reinforces these lessons and helps keep seniors informed between visits. A consistent focus on community education builds trust and positions your institution as a proactive ally in fraud prevention. As fraud tactics evolve with AI, so must the strategies used to stop them. 12 NEBRASKA INDEPENDENT BANKER
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