Courtesy of News Nation and AaronP/Bauer-Griffin/GC Images
Moneywise and Yahoo Finance LLC may earn commission or revenue from the links below.
The fraud began in August 2023 as fear masqueraded as urgency. Pop-up warnings began flashing on 86-year-old Nina Mortellito’s computer screen, claiming her bank account had been hacked. What followed was a months-long story of manipulation that ultimately wiped out $700,000 of her life savings.
The Upper East Side resident, who suffers from age-related memory loss, was persuaded to make a series of withdrawals over nine months that were considered a “custodial” act, according to a lawsuit filed against Merrill Lynch in Manhattan Supreme Court.
It was very out of character for Motelito to withdraw so much at once. In more than 30 years, she has never withdrawn more than $5,000. Her niece was even added as a co-trustee in 2022 to provide oversight and financial security. Although the withdrawal was out of character for Motelito, the bank never raised red flags.
“We are very disappointed that the bank did not act according to reasonable professional standards,” Motelito’s nephew Stephen Kuhn told the New York Post. (1) “We have no choice but to file this lawsuit, which we hope will bring about real changes to the bank’s policies and procedures, reducing the chance of this happening to others.”
But who is really at fault?
According to court documents, Motellito was deceived into believing that her savings were at risk and the only way to protect them was to exchange everything for gold bullion. Over several months, she withdrew about $275,000 from her Merrill Lynch account and wired another $150,000 from her TD Bank account to a gold dealer in Texas.
The complex scam doesn’t stop there. She also mailed a check for $30,000 and withdrew more than $100,000 from her UBS account at the scammer’s instructions, the lawsuit states.
These are not just retractions – they are acts of trust in those who say they have our best interests at heart. This is the power of imposter scams. Criminals will pretend to be someone else for just long enough to make you feel safe.
Then they take everything. And business is booming. A report from the Federal Trade Commission shows that impersonation scams are four times more likely to occur now than before. (2) Older Americans are paying the price. The FBI reports that seniors lost a record $4.8 billion to fraud in 2024, a record-breaking number that reflects the emergence of new types of digital scammers. (3)
Learn more: Warren Buffett turned $9,800 into a $150B fortune using 8 solid, repeatable money rules. Start using them to get rich (and stay rich) today
It wasn’t just Motelito’s money that disappeared. It was her savings that gave her freedom: theater tickets, travel, dinners with friends that made her feel alive. Losing your savings means losing those luxuries that make up a good life.
Now, her lawyers are suing the bank for negligence, saying it failed to protect her when all signs of fraud emerged. They also appeared on NewsNation with Chris Cuomo to raise awareness. (4)
“Banks need to take reasonable steps to protect customers, especially seniors, who are particularly vulnerable to online fraud,” said attorney Robert Georges of Konta Georges & Buza PC. new york post. “Here, banks have repeatedly failed to conduct due diligence, which has resulted in [Mortellito] Losing her life savings. “
While Motellito’s story is heartbreaking, it’s also preventable. Most scams thrive under the radar, but talking about them early can make a difference.
While Motellito’s story is heartbreaking, it’s also preventable. Most scams thrive under the radar, but talking about them early can make a difference.
If you want a powerful ally to protect you or a loved one’s finances from scammers, consider a service like Aura.
This online scam tracker uses artificial intelligence monitoring to find unusual transactions and sends alerts within minutes for any unusual or significant activity. Additionally, their US-based fraud experts are available 24/7 to ensure you can quickly find information and resolve incidents.
Starting at just $9 per month, Aura offers an all-in-one digital safety net with 24/7 customer support and fraud alerts, and is 650 times faster than the competition. Aura also offers 3-bureau credit monitoring on all plans and $1 million in identity theft protection against qualified losses, which is typically limited to premium subscription levels with other service providers.
Even better, Aura offers a 60-day money-back guarantee for annual subscriptions, and a 14-day money-back guarantee if you choose to pay monthly.
When on the subject of scams, it helps to take the information directly from the headlines: “I just read about these scams targeting retirees. Want me to show you what they look like?”
A little openness and empathy can help remove the shame that often keeps victims silent. It also helps to know the warning signs. Scammers often use fear as a tool, claiming that your account has been compromised, your grandchild is in trouble, or your funds are at risk. If someone asks for payment in gift cards, wire transfers, or cryptocurrency, it’s a scam. (5)
Some small safeguards can make a difference. Set text alerts for large transactions, and enable two-factor authentication so you can pause for a moment before transferring large amounts of money.
The American Association of Retired Persons (AARP) recommends that families create a “fraud checking system” in which one member is a designated guarantor who approves all transactions. Protecting your loved ones involves more than just being there when something goes wrong. The important thing is to get there before it happens. (6)
We rely only on vetted sources and reliable third-party reports. For more information, see our Editorial Ethics and Guidelines.
New York Post (1); Federal Trade Commission (2); FBI (3); (4); Task Force (5); AARP (6).
This article provides information only and should not be considered advice. It is provided without any warranty of any kind.
