Fraud Strategy Needs a Generational Lens

Fraud prevention often starts with a familiar assumption: Older customers need the most protection. That is true in one important sense—older victims can suffer much larger losses when fraud succeeds. But an article by Cara Wick, a financial crimes compliance executive at Bank of America, makes a useful correction: Younger consumers are being hit hard, too, and fraud strategies that focus too narrowly on seniors can miss how scams actually work across generations. 

The Federal Trade Commission’s Consumer Sentinel Network shows that 20-to-29-year-olds are more likely than older age groups to report losing money to fraud, while victims age 70 and older tend to lose far more per incident. That split points to a more nuanced fraud challenge. Younger customers’ comfort with links, apps, online marketplaces, and fast digital payments can breed complacency. Older customers may be more vulnerable to scams built around trust, personal connection, and larger available balances. 

A few priorities follow: 

Build rules around behavior, not stereotypes. Demographics alone are not enough. A longtime customer who suddenly sends large wires or checks to foreign countries may be caught in a romance scam. A new customer who deposits a check and quickly sends funds by ACH, Zelle, or wire to an unknown business may be involved in employment fraud. Strong detection rules should account for customer behavior, transaction context, and account age. 

Use multiple intervention points. A layered approach gives banks more chances to slow fraud before funds are gone. Behavioral flags, step-up verification for unusual transfers, and real-time alerts can intervene before, during, and after a transaction. The goal is not just to stop a payment, but to create a moment for the customer to pause. 

Tailor the message by audience. One-size-fits-all fraud education is unlikely to work. Wick notes that older adults may be more likely to retain positive, connection-oriented messages. Younger adults may respond better to urgency-tolerant, gamified campaigns such as “see how fast you can spot the scam.” 

Keep traditional channels in the mix. Digital campaigns matter, especially for younger consumers exposed to scams through online platforms. Branches and mail still have value. Customers who adopted digital tools later in life may listen to a banker explaining the signs of a romance scam, and older Americans may be more likely than younger ones to open a fraud-prevention mailer. 

Make warnings actionable in the moment. A pop-up during a deposit can be more useful than a general education campaign delivered days earlier. Wick offers this example of an effective pop-up message: “Is this a job reimbursement check? Learn why these are often fake.” 

The takeaway: Fraudsters exploit confidence, urgency, trust, and fear across every age group. Wick points to optimism bias—the belief that scams happen to someone else—as a vulnerability for both consumers and the industry. The stronger strategy is behavioral, layered, timely, and tailored to the customer in front of the bank. 

For more on tailoring fraud detection, education, and communication across age groups, download “How to Fight Fraud Across Generations,” a practical guide from the ProSight Fraud Alert Network.