The news: Navy Federal Credit Union has started using an AI platform called Cube AI to fight scams, deploying bots that pose as victims in conversations with scammers, per Banking Dive. 

When the technology identifies scammers’ accounts, it helps Navy Federal flag the account before customers send money there. 

Navy Federal also changed how it handles customers who try to send money despite warnings. The credit union previously had members sign an affidavit before a suspicious transfer, but it now declines the transaction if enough red flags appear. 

Why this matters: Scams involve customers acting on their own after being deceived, which is harder to detect with traditional signals. Bank executives see this as their top AI-related risk. 84% named sophisticated fraud and scams targeting customers a leading AI concern, per a March 2026 Bank Director survey, ahead of competitive threats from other institutions. 

The stakes extend beyond direct losses: 42% of scam victims consider switching banks after an incident, and 19% have actually done so, per a PYMNTS study sponsored by Block. 

Implications for banks and credit unions: Scam prevention builds stronger customer relationships on top of preventing losses. Fraud prevention and security rank as the top factor for 97% of consumers when choosing a bank, per Alloy. Account intelligence from AI can help give banks solid grounds for blocking a transfer, shaping whether a customer feels protected or frustrated.

But preventing scams isn’t enough; banks need to make that protection visible. Institutions should explain in plain language how their technology helps identify suspicious recipients, why a payment was delayed or blocked, and what customers should do next. 

Timely, specific communication can turn a potentially frustrating intervention into evidence that the bank understands the threat and is acting in the customer’s interest. That reinforces the bank’s role as a trusted financial partner, deepening relationships instead of merely preventing a one-time loss.

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