Elder Financial Exploitation

When Banks Fail To Protect Older Seniors From Elder Financial Abuse

86-Year-Old Grandmother Sues Merrill Lynch, UBS, and TD Bank Over Loss of $700 in Life Savings in Fraud Scam

Shepherd Smith Edwards and Kantas Elder Financial Exploitation attorneys (investorlawyers.com) represent seniors who have suffered losses because of elder financial abuse. Banks, brokerage firms, and investment advisers are supposed to protect investors from becoming the victims of fraud. It is no secret that elderly seniors, especially those with cognitive impairments, can be especially vulnerable to scammers. Elder financial abuse reportedly costs older Americans about $28B a year.

Recently, an elderly Manhattan woman sued UBS Financial, Merrill Lynch/Bank of America, and TD Bank after she was defrauded of $700,000 by scammers and lost her entire life savings. She is suing all three entities for negligence, including allegedly failing to protect her and her money.

According to her elder fraud lawsuit, filed in the Supreme Court of the State of New York, a pop-up window appeared on her computer in 2023 that falsely warned her that her accounts were about to be hacked. At the fraudster’s instructions, this octogenarian withdrew money from her accounts and converted the funds into gold bullion. They claimed they would keep her money safe.

This woman is someone who has age-related memory loss. She typically only withdraws less than $5,000 when she takes out money. Her niece was even named co-trustee of her account because of her diminished capacities and after already falling victim in a different elder fraud event. In her elder financial abuse lawsuit, the plaintiff contends that the banks knew that she needed “elevated protections and monitoring” to avoid falling victim to this type of scam again.

Elder Financial Exploitation and Financial Advisor Negligence

Shepherd Smith Edwards and Kantas represents seniors and their families in recouping losses involving financial advisor negligence. Even if your broker or investment adviser had nothing to do with the fraud that caused you or your older loved one to become the victim of this crime, they are supposed to pay attention and thwart financial exploitation from happening.

The Financial Industry Regulatory Authority even has rules in place to protect older investors from senior financial abuse, such as:

That a designated trusted contact be added to the account.
Placing a temporary hold on securities transactions or disbursements of funds when there are activities that appear suspect. This is especially important if the customer is age 65 or older and suffers from mental or physical impairments.

More and more in the US, brokers and financial professionals are supposed to report any suspected incidents of elder financial abuse involving customers, including by third parties. There is even the Senior$safe Act. This is a federal law protecting financial institutions and eligible employees from liability if they do make the report and as long as it’s done in good faith.

How Can Our Elder Financial Exploitation Attorneys Help?

Unfortunately, there are not only scammers out there that will continue to take advantage of older seniors; there are also rogue brokers and investment advisers that use their positions to defraud elderly clients.

Many of those who we represent are older investors who have been the victims of senior financial exploitation. We are dedicated to providing each of them and their families with personalized attention and experienced securities representation as we fight to help them recoup their lost or stolen money.

This is not the kind of securities claim you want to make without trusted senior financial abuse lawyers fighting for you.

Call (800) 259-9010 or fill out this online contact form so we can help you assess the cause of your retirement and savings losses.

**If you are someone looking to take preventive measures to protect your life savings, including the funds of an elderly loved one, contact our partner firm McCulloch & Miller for your estate planning and elder law needs.