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In August 2023 the hoax began as fear dressed up as urgency. Pop-up warnings started flashing on 86-year-old Nina Mortellito’s computer screen, claiming her bank account had been hacked. What followed was a months-long saga of manipulation that eventually wiped out his $700,000 — his entire life savings.
According to a lawsuit filed against Merrill Lynch in Manhattan Supreme Court, the Upper East Side resident, who suffered from age-related memory loss, was persuaded to make a series of withdrawals over nine months as an “act of protection.”
It was unusual for Mortellito to withdraw so much at once. For more than 30 years, his withdrawals have never exceeded $5,000. His niece was also added as a co-trustee in 2022 to provide oversight and financial security. Even though the withdrawals were out of character for Mortellito, Banks never raised a red flag.
“We are extremely disappointed that the banks did not act according to proper professional standards,” Mortellito’s nephew, Stephen Kuhn, told the New York Post. (1) “We are left with no choice but to bring this case, which we hope will lead to real change in the banks’ policies and procedures, making it less likely to happen to others.”
But who is really to blame?
According to court documents, Mortellito was tricked into believing his savings were at risk and the only way to protect them was to convert everything into gold bullion. Over several months, she withdrew about $275,000 from her Merrill Lynch accounts and wired another $150,000 from her TD Bank account to a gold dealer in Texas.
The sophisticated scam doesn’t just stop there. He also sent a $30,000 check and withdrew more than $100,000 from his Union Bank of Switzerland (UBS) account at the scammers’ direction, according to the lawsuit.
These weren’t mere withdrawals—they were acts of faith for someone who allegedly had our best interests in mind. That is the power of deception scams. A criminal pretends to be someone they are not, long enough to make you feel safe.
Then they take everything. And business is booming. A report by the Federal Trade Commission shows that impersonation scams are four times more likely to occur now than before. (2) And older Americans are paying the price. The FBI reports that seniors will lose $4.8 billion to scams in 2024, a record-breaking amount that reflects a new, digital breed of con artist. (3)
Read more: Warren Buffett used 8 solid, repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich).
It wasn’t just Mortellito’s money that disappeared. It was the freedom her savings gave her: theater tickets, trips, dinners with friends that made her feel alive. To lose his nest egg is to lose those luxuries that make life well lived.
Now, her lawyers are suing the banks for negligence, arguing they failed to protect her when there were all the signs of fraud. They also appeared on News Nation to raise more awareness with Chris Cuomo. (4)
“Banks need to take reasonable steps to protect their customers, especially the elderly, who are uniquely susceptible to online scammers,” said Robert Georges, attorney at Konta Georges & Buza PC. New York Post. “Here, the banks repeatedly failed to exercise due diligence, resulting in [Mortellito] Lose your life savings.”
As heartbreaking as Mortellito’s story is, it’s also preventable. Most scams thrive in silence, but talking about them early can make all the difference.
As heartbreaking as Mortellito’s story is, it’s also preventable. Most scams thrive in silence, but talking about them early can make all the difference.
If you want a powerful ally to protect your finances or your loved ones from scams, consider services like Aura.
This online scam tracker uses AI monitoring to spot unusual transactions and sends alerts for any unusual or significant activity within minutes. Plus, their US-based fraud experts are available 24/7 to ensure you can get information and resolve your incident quickly.
Starting at just $9 per month, Aura offers an all-in-one digital safety net with 24/7 customer support and fraud alerts that are 650 times faster than their competitors. Aura also offers 3-bureau credit monitoring on all plans with $1 million in identity theft protection on eligible losses, which is often limited to premium membership tiers for other service providers.
Even better, Aura offers a 60-day money-back guarantee for annual subscriptions, and a 14-day guarantee if you choose to pay month-to-month.
When broaching the subject of scams, it helps to take it straight from the headlines: “I just read about these scams targeting retirees. Shall I show you what they look like?”
A little openness and empathy can help overcome the shame that often keeps victims quiet. It also helps to learn the warning signs. Scammers often use panic as a tool, claiming your account has been compromised, your grandchild is in trouble or your money is at risk. And if someone asks for a gift card, wire transfer or payment in crypto, that’s a scam. (5)
A few small safety measures can make a difference. Set up text alerts for large transactions, and turn on two-factor authentication so you can create a moment of pause before moving large sums of money.
The American Association of Retired Persons (AARP) recommends families create a “fraud check system” where one member is assigned a security guard who approves all transactions. Protecting your loved ones isn’t just about being there when something goes wrong. It’s about being there before it happens. (6)
We rely only on vetted sources and reliable third-party reporting. For details, see our editorial ethics and guidelines.
New York Post (1); Federal Trade Commission (2); Federal Bureau of Investigation (3); (4); WGME (5); AARP (6).
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
