Credit union members want more than fraud protection

While credit unions have long benefited from strong member relationships and high levels of trust, the findings from Abrigo’s 2026 State of Fraud Survey suggest that trust alone may not be enough to address growing concerns about fraud, artificial intelligence, and financial security.

The survey, which included responses from 248 credit union members across the United States, found that members generally feel safe with their credit unions and appreciate the fraud prevention efforts already in place. However, the results also reveal opportunities for credit unions to strengthen communication, improve member education, and build greater confidence in their fraud detection programs.

Fraud is not a distant threat for many credit union members. Nearly 40% of respondents reported being victims of financial fraud at some point. Additionally, 21% experienced fraudulent activity involving their account during the previous 12 months, while 17% experienced fraudulent activity involving a credit card.

When fraud occurs, the impact extends beyond financial loss. Among credit union members who experienced fraud:

These findings reinforce an important lesson for credit unions: Members often remember the experience of fraud recovery as much as the fraud itself. Communication, responsiveness, and support during the recovery process can have a lasting impact on member relationships.

One of the most encouraging findings in the survey is that credit union members generally feel safe with their institutions. More than 85% reported feeling either very safe or somewhat safe with their credit union. Nearly half, 45%, said they feel very safe.

Interestingly, confidence in fraud protection does not fully match those safety perceptions. Only 41% reported being very or extremely confident that their credit union is protecting them from fraud. More than half described themselves as only somewhat confident.

This distinction matters. Members clearly trust their credit unions, but many are uncertain about the specific tools, technologies, and processes being used to protect their accounts. This creates an opportunity for credit unions to strengthen member confidence through education and transparency.

Artificial intelligence is becoming a larger part of the fraud conversation. Nearly two-thirds of credit union members, 66%, reported being very or extremely concerned about AI-powered fraud techniques such as deepfake videos, synthetic voices, and AI-generated phishing emails. Another 26% reported being moderately concerned.

Data breaches and hacking remain the greatest concern among digital fraud threats, selected by 59% of respondents. Smart fake emails, deepfake scams, and peer-to-peer payment fraud also ranked among the most concerning fraud tactics.

At the same time, members recognize that AI can also play a role in fighting fraud. Nearly one-third said they would feel more confident in their credit union’s fraud detection capabilities if AI-powered fraud detection tools were being used. However, more than half of respondents said they do not know whether their credit union currently uses AI-powered fraud detection technology.

This finding highlights a common challenge facing many financial institutions. Technology investments alone may not increase confidence if members do not understand how those tools help protect them.

Credit union members were clear about the types of fraud prevention tools they value most. When asked what would make them feel more secure, respondents most frequently selected:

These responses suggest that members want both technology and guidance. They want faster intervention when suspicious activity occurs, but they also want help understanding how to protect themselves from emerging threats.

Many credit union members already take an active role in protecting themselves. Nearly half reported educating themselves about emerging threats, while 44% use transaction notifications and 42% use multi-factor authentication on financial accounts.

Despite these efforts, many members still feel they need additional information. When asked about AI’s role in fraud detection, 44% selected “neutral” because they need to learn more. Only 16% viewed AI as highly effective in fraud detection. For credit unions, this presents an opportunity to strengthen member relationships through education.

Providing practical information about emerging scams, fraud prevention technologies, account security practices, and artificial intelligence can help members make informed decisions while increasing confidence in the institution’s fraud prevention efforts.

Perhaps the most important finding for credit unions involves the potential impact of fraud on member relationships. Nearly 60% of respondents said they would be more likely to reduce their banking relationship if they became victims of fraud.

This means fraud prevention is no longer solely a risk management issue. It is also a member experience issue. Credit unions have long differentiated themselves through service, trust, and community relationships. Those strengths can become even more valuable as fraud threats continue to evolve.

Members want to know that their credit union is actively protecting them. They want timely alerts, effective fraud controls, and clear communication. Most importantly, they want confidence that their institution is prepared to respond when fraud occurs.

The 2026 survey findings show that credit union members continue to trust their institutions, but they also expect more from them.

Members are concerned about fraud. They are increasingly aware of AI-enabled threats. They want stronger fraud prevention tools, faster alerts, and greater transparency about how their credit union is protecting them.

Credit unions are uniquely positioned to meet these expectations. By combining strong member relationships with effective fraud prevention programs, ongoing education, and clear communication, credit unions can continue to build trust while helping members navigate an increasingly complex fraud environment. The credit unions that invest in both fraud prevention and member confidence today will be better positioned to strengthen relationships, reduce losses, and serve their communities in the years ahead.