Lenders ramp up scam defenses to confront elder fraud

Financial institutions like Fifth Third Bank are tightening their security protocols to combat the rise of elder fraud. For retailers and service providers, this means the financing process for older customers may face more scrutiny. Lenders are moving toward proactive detection rather than reactive reporting. This shift is driven by the fact that older adults are frequently targeted through sophisticated social engineering scams. What does this mean for your business? Expect more friction in the application process for high-ticket items. If a lender suspects a customer is being coerced or misled, they may pause the transaction or require additional verification. This is especially true in home improvement and medical verticals where price points are higher. While this helps protect your customers from fraud, it can occasionally slow down the point-of-sale experience. Retailers should ensure their sales staff are trained to be patient and transparent during the credit application process. High-trust communication is now a requirement for closing financed sales with seniors. Lenders are also looking for patterns in merchant behavior. Maintaining a clean record of ethical sales practices will ensure your business doesn't get flagged by these new automated defense systems.

Source: Banking Dive

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