Time To Rethink Scam Prevention Training

The  time has come to think differently if we are to achieve the preventative  results we seek. 

Judith’s quote says it all. “I never felt that their biggest concern was for my potential losses, although they repeated the word scam but absolutely no context of what that could look like,” she said of the banks. “Rather, they described their institutional losses from other scams and how the individuals came back to blame them . . . Had they just been more personal and descriptive about what a scam could look like, maybe I would have wised up sooner.”

Washington Post’s Michelle Singletary’s recent series, “Scammed” is an in-depth
look at the way Judith Boivin, quoted above was conned of nearly $600,000 from her retirement savings account by a coach who had this retired therapist convinced she was helping the FBI bring down a Mexican cartel’s drug and money-laundering operation. In the aftermath as she related her experience to Michelle, Judith acknowledged that she was coached by the scammers on what to say when trying to withdraw her money. In these scenarios, such victims are said to be in “fraud fog,” manipulated and frightened by the experience in which they find themselves.

That being the case, any bank or credit union representative who first encounters a person visibly deemed to be in fraud fog, under the manipulation of a con artist, should certainly be trained to properly address and resolve the situation. And for the most part, they are. However, given today’s skyrocketing losses to scams and fraud, I propose we need to think differently. While experts all cite education as the best weapon in our arsenal to prevent scams, I now strongly encourage everyone, from legislators to regulators and financial services providers, that more training, innovative actions, and tools are needed if we are to ever claim the upper hand in this fight.

After more than seven years advocating for older adults and scam prevention, and after following Michelle’s 7-Part series describing Judith’s detailed recounting of her scam experience, I’ve come to think differently. In addition to training that imparts knowledge of the various types of scams and what to do, I’ve concluded that such proper training also necessitates a component addressing the skills needed to be able to convey a sincere understanding and empathy towards the distressed person. Doing so would be a big first step in countering the fraudster’s manipulation. Showing understanding and empathy would facilitate an ability to further connect with the traumatized person, hopefully forming a bond to help break down the scammer’s manipulation and influence, and thereby helping the person to realize they’re being victimized.

Clearly, any observation of the current trends dictates that education, alone, is not meeting today’s growing challenges of impeding the rate of monetary losses victims are experiencing. More is needed. Financial institutions should also be given more authority to safely implement new innovative processes and resources designed specifically for the purpose of safeguarding an account holder’s savings from being decimated by a scam.

One innovative suggestion I might offer for consideration when a withdrawal request is made for thousands of dollars, is that after it becomes obvious that the person is being manipulated by a fraudster and refuses to acknowledge such reality, the financial services provider insists that the potential scam victim - like Judith - first attend a scam prevention workshop as part of its process for releasing funds. This concept might be considered similar to attending a condo timeshare presentation before being able to participate afterward in the free dinner giveaway. This fraud-prevention workshop will not only buy additional time to investigate the scam and possibly stop its progress but might well also serve as a mind-clearing catalyst. And, with the proper understanding and empathy, it may just help victims come to the realization that they are being conned.

As it is, relying exclusively on education as the best preventative course will only have us continue to see the same results – the explosive growth of financial scams and fraud going unabated. The time has come to think differently if we are to achieve the preventative results we all seek for those whom we so deeply cherish.

(As published in CU Today, December 10, 2024)