Holiday Fraud Alert: Frontline Strategies to Protect Your Members and Your Credit Union

The holiday season inevitably brings a spike in financial fraud alongside the increase in transaction volumes. As frontline staff navigate busy branches and digital queues, scammers are working just as hard to exploit the general distraction. The Canadian Anti-Fraud Centre (CAFC) cautions that this remains one of the most active periods for cybercriminals targeting Canadians through sophisticated schemes.

For credit unions, the focus on prevention becomes critical during these weeks. Technology provides essential filters, yet your frontline staff often serve as the most effective defense against member financial loss.

Recognizing the Seasonal Threats

Criminals capitalize on the high volume of digital activity typical of December. Recent advisories from the CAFC and federal cyber safety campaigns indicate that credit unions should maintain heightened awareness for specific trends. These include fake online shopping sites offering deals that seem improbable and delivery scams designed to harvest personal information. We also see a rise in the "grandparent" scam, where fraudsters pose as relatives in urgent distress, alongside charity fraud that exploits seasonal generosity.

While the narratives vary, the red flags remain consistent. Staff should look for unusual urgency, demands for secrecy, or requests for payment via untraceable methods such as gift cards and wire transfers.

Protecting Vulnerable Members

Fraudsters tend to target specific demographics with precision. Seniors, newcomers to Canada, and individuals who may be isolated often face the highest risk.

Schemes like romance scams or emergency fraud rely on creating emotional pressure. This manipulation can be particularly effective against older adults or lonely members during the holidays. Employees possess a fiduciary duty to scrutinize unusual account activity fitting these patterns. Examples include sudden large withdrawals or unexplained transfers to new beneficiaries.

The "Extra Minute" Strategy

We encourage credit union staff to take "an extra minute" when a member interaction feels unusual.

If a member appears distressed or is making a transaction out of character, staff should feel empowered to ask gentle verifying questions. You might ask if they have verified the request independently or if they know the recipient personally. Suggesting that the member contact the alleged caller using a trusted number rather than acting immediately can often break the spell of urgency.

System Controls: The Infonancial View

Beyond staff vigilance, robust system controls provide a necessary safety net. On the core banking side, Infonancial recommends heightened attention to money movement controls.

Credit union staff are under immense pressure during the holidays and often work with leaner teams. Therefore, we advise focusing on the basics of transaction logic. As the saying goes, "follow the money" and ensure the transaction makes sense for that specific member.

During this period, we suggest:

• Monitoring Suspicious Activity Reports (SARs) daily for anomalies.

• Reviewing Limits closely, particularly for transfers and bill payments.

Combining vigilant system monitoring with empathetic frontline questioning creates a resilient defense for your institution and your members.