Sunday, June 11, 2023

An elderly man was scammed out of millions. Could the bank have done more to prevent fraud?

Estate planningElder exploitation is something that family members and caregivers may come across, and preparation ahead of time can help prevent financial exploitation of loved ones down the road. Having conversations about finances sooner rather than later is imperative.

Asking for help from a trusted friend, relative, or professional is the first place to start. Next, organizing important documents, like bank information, insurance policies, and contacts for doctors and lawyers, and designating a trusted contact person for brokerage accounts if a broker believes a scam is occurring. All accounts should be kept current, and any changes should be communicated to trusted contacts.

Naomi Cahn, a professor at the University of Virginia School of Law and expert in family law, estates, trusts, and aging, notes that many customers had personal relationships with their banks before online banking. These relationships gave banks opportunities to observe any changes in customers’ demeanor. This played a role in assessing competence and addressing concerns over large financial transfers that might indicate exploitation.

If elder financial exploitation is suspected, a complaint can be filed with the U.S. Securities and Exchange Commission. Additionally, the Financial Industry Regulatory Authority Securities has a helpline for seniors, and state securities regulators also have resources.

For more information see Amritpal Kaur Sandhu-Longoria “An elderly man was scammed out of millions. Could the bank have done more to prevent fraud?” USA Today, May 14, 2023.

Special thanks to Naomi Cahn (University of Virginia) for bringing this article to my attention.

https://lawprofessors.typepad.com/trusts_estates_prof/2023/06/an-elderly-man-was-scammed-out-of-millions-could-the-bank-have-done-more-to-prevent-fraud.html

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