The fraud started in August 2023 as fear dressed up as urgency. Pop-up warnings began flashing across 86-year-old Nina Mortellito’s computer screen, claiming her bank accounts had been hacked. What followed was a months-long tale of manipulation that ultimately drained her of $700,000 — her entire life savings.
According to a lawsuit filed against Merrill Lynch in Manhattan Supreme Court, the Upper East Side resident who suffers from age-related memory loss was persuaded to make a series of withdrawals over nine months, framed as an act of “safekeeping.”
It was uncharacteristic of Mortellito to withdraw so much at once. For over 30 years, her withdrawals never exceeded $5,000. Her niece had even been added as a co-trustee in 2022 to provide oversight and financial safeguards. Even though the withdrawals were out of character for Mortellito, the banks never raised a red flag.
“We are extremely disappointed the banks have not acted according to reasonable professional standards,” Mortellito’s nephew-in-law, Stephen Kuhn, told The New York Post. (1) “We are left with no choice but to bring this lawsuit, which we hope will bring real change to the banks’ policies and procedures, lessening the chances this will happen to others.”
But who’s really at fault?
What happened?
According to court documents, Mortellito was tricked into believing her savings were at risk and that 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. She also mailed a $30,000 check and took out more than $100,000 from her Union Bank of Switzerland (UBS) accounts at the scammers’ direction, according to the lawsuit.
These weren’t just withdrawals – they were acts of trust for someone who alleges they have our best interests in mind. That’s the power of an imposter scam. A criminal pretends to be someone they’re not, just long enough to make you feel safe.
Then they take everything. And business is booming. A report from the Federal Trade Commission shows impersonation scams are now four times more likely to happen than before. (2) And older Americans are paying the price. The FBI reports seniors lost $4.8 billion to scams in 2024, a record-breaking sum that reflects a new, digital breed of con artist. (3)
Protecting your loved ones
It wasn’t just Mortellito’s money that disappeared. It was the freedom her savings gave her: the theater tickets, the travel, the dinners with friends that made her feel alive. Losing her nest egg meant losing those luxuries that add up to a life well-lived.
Now, her lawyers are suing the banks for negligence, arguing they failed to protect her when all the signs of fraud were present. They also appeared on News Nation with Chris Cuomo to raise further awareness. (4)
“The banks need to take reasonable steps to protect their customers, especially the elderly, who are uniquely susceptible to online scammers,” lawyer Robert Georges of Konta Georges & Buza PC told The New York Post. “Here, the banks repeatedly failed to exercise due diligence, which caused [Mortellito] to lose her 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 when protecting your finances or those of your loved ones from scams, consider services like Aura.
This online scam tracker uses AI monitoring to look for unusual transactions and sends alerts for any unusual or significant activity within minutes. Plus, their U.S.-based fraud experts are available 24/7 to ensure you can find information and resolve your incident quickly.
Starting at just $9 per month, Aura provides an all-in-one digital safety net with 24/7 customer support and fraud alerts that are up to 650 times faster than their competitors. Aura also provides 3-bureau credit monitoring on all plans with $1 million in identity theft protection on eligible losses, something often restricted to premium subscription tiers for other service providers.
Even better, Aura provides a 60-day money-back guarantee for annual subscriptions, and a 14-day guarantee if you opt to pay month-to-month.
When broaching the subject of scams, it helps to take 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 in dismantling 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 payment in gift cards, wire transfers or crypto, that’s a scam. (5)
A few small safeguards 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 that families create a “fraud check system” where one member is the designated safeguard 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 does. (6)
