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Scams are evolving fast, and so must the tools and strategies we use to fight them. For many financial institutions, especially credit unions, the challenge isn’t just catching fraud after it happens. It’s preventing it before it ever reaches the member.
At the heart of this challenge is a simple truth: most consumers don’t have a fraud expert on call. When they receive a suspicious message or link, they’re left guessing. Often, that guess comes too late.
The Cost of Silence and the Opportunity of Transparency
Many credit unions hesitate to speak publicly about fraud, fearing reputational risk. The concern is understandable. No institution wants its brand associated with scams. But this silence creates real danger. Without timely education and accessible tools, members are left to guess, and scammers count on that uncertainty.
Proactive fraud education should not be viewed as a liability. It is a trust-building opportunity. When institutions give members the means to recognize and respond to scams on their own, they demonstrate leadership and reinforce trust.
Why This Matters Now
The FBI’s 2024 Internet Crime Report shows that Americans reported more than $12.5 billion in scam-related losses, up 22 percent from the prior year. Older adults were hit hardest, with individuals over 60 accounting for $3.4 billion of those losses.
The U.S. Senate Aging Committee echoed this in their 2025 Age of Fraud report, highlighting that scammers are using increasingly sophisticated techniques, including AI, to deceive vulnerable populations. The report calls for early detection and consumer education. These are precisely the areas where credit unions are best positioned to lead. Their message was clear: we cannot afford to delay action.
Scams are more manipulative, more targeted, and more financially devastating than ever. The credit union industry cannot wait for national policy alone. Members need real support now.
From Policy to Action: The Role of TRAPS and Aspen
In response to rising losses, the bipartisan TRAPS Act (Task Force for Recognizing and Averting Payment Scams) proposes a coordinated federal response. The bill would establish a Treasury-led interagency task force that includes regulators such as the CFPB, FTC, DOJ, OCC, FDIC, NCUA, and key private-sector stakeholders, credit unions among them.
Its mission: to analyze the most prevalent scam tactics, identify gaps in detection and prevention, and issue actionable recommendations. The first report is expected within a year of formation.
This is a meaningful step, but we don’t need to wait another year to act. The Aspen Institute’s National Scam Prevention Task Force, launched in July 2024, has already brought together over 300 leaders from 80 organizations. In June 2025, they released Phase One outputs with actionable frameworks for real-time scam warnings, data sharing protocols, and cross-sector coordination strategies.
The groundwork is done. The ask now is clear: TRAPS stakeholders and industry leaders should use Aspen’s work as a foundation and focus on rapid implementation. Credit unions in particular can move faster than regulation, setting the standard for proactive scam prevention across the financial ecosystem.
Empowering Members with the Right Tools
One of the most effective ways to close the gap is to give members direct access to scam detection tools. By automatically filtering suspicious messages or enabling members to verify a message and receive a real-time risk assessment and clear next steps, financial institutions can turn anxiety into confidence.
Even better, these tools can be customized to verify legitimate communications. This adds clarity, reduces confusion, and reinforces trust in the institution’s outreach.
Beyond preventing fraud, this approach rewards positive behavior. When members are encouraged to check before they click, they’re more likely to continue that practice and share it with others.
What Credit Unions Can Do Next
We expect to see more credit unions:
- Offering real-time scam detection tools through digital channels
- Launching proactive member education campaigns
- Participating in and building on national initiatives like the TRAPS Task Force and Aspen’s Phase One outputs
- Recognizing and encouraging fraud-aware member behavior
This is a pivotal moment for the credit union movement. Fraud prevention is no longer just about catching bad actors. It's about empowering good members to act confidently and safely before a scam takes hold.
At RangersAI, we are committed to supporting credit unions that are ready to lead this change. Let’s move from defense to empowerment, together.
