The scam began in August 2023, driven by fear disguised as urgency. Pop-up alerts began flashing on 86-year-old Nina Mortellito’s computer screen, claiming that her bank accounts had been hacked. What followed was a months-long tale of manipulation that eventually drained him of $700,000, his entire life savings.
An Upper East Side resident suffering from age-related memory loss was persuaded to undergo a series of withdrawals over nine months, framed as an act of “safety,” according to a lawsuit filed against Merrill Lynch in Manhattan Supreme Court.
It was unbecoming of Mortellito to withdraw so much at once. In more than 30 years, withdrawals have never exceeded $5,000. His nephew was even 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 reasonable professional standards,” Mortellito’s nephew Stephen Kuhn told The New York Post. (1) “We are left with no choice but to file this lawsuit, which we hope will bring real change to banks’ policies and procedures and reduce the likelihood of this happening to others.”
But who’s really at fault?
According to court documents, Mortellito was duped into believing that his savings were at risk and that the only way to protect them was to turn everything into gold bullion. Over several months, he withdrew nearly $275,000 from his Merrill Lynch accounts and wired another $150,000 from his TD Bank account to a gold dealer in Texas.
Sophisticated fraud is not limited to just that. She also sent a $30,000 check and withdrew more than $100,000 from Union Bank of Switzerland (UBS) accounts at the scammers’ instructions, according to the lawsuit.
These were not mere retreats; these were acts of trust for someone who claimed to have our best interests in mind. That’s the power of impostor fraud. A criminal pretends to be someone they are not for long enough to make you feel safe.
Then they take everything. And things are improving rapidly. A report from the Federal Trade Commission shows that impersonation scams are now four times more likely to occur than before. (2) And older Americans are paying the price. The FBI reports that seniors lost $4.8 billion to fraud in 2024; This is a record amount reflecting a new, digital breed of fraudsters. (3)
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It wasn’t just Mortellito’s money that was lost. It was the freedom his savings gave him: theater tickets, trips, dinners with friends that made him feel alive. Losing one’s home meant losing the luxuries that contribute to a life well lived.
Now his lawyers are suing the banks for negligence, arguing that they failed to protect him even though all signs of fraud were present. They also appeared on News Nation with Chris Cuomo to raise awareness. (4)
“Banks need to take reasonable steps to protect their customers, especially the elderly, who are highly susceptible to online scammers,” said attorney Robert Georges of Konta Georges & Buza PC. New York Post. “Banks here have repeatedly failed to do their due diligence, resulting in [Mortellito] To lose his life savings.”
As heartbreaking as Mortellito’s story is, it is also preventable. Many scams develop quietly, but talking about them early can make a big difference.
It’s helpful to quote directly from the headlines when broaching the subject: “I just read about these scams targeting retirees. Want me to show you what they look like?”
A little openness and empathy can help eliminate the shame that often keeps victims silent. It also helps you learn the warning signs. Scammers often use panic as a tool, claiming that your account has been hacked, your grandchild is in trouble, or your money is at risk. If someone requests payment by gift card, wire transfer, or cryptocurrency, it’s a scam. (5)
A few small precautions can make a difference. Set up text alerts for large transactions and turn on two-factor authentication so you can create a momentary pause before moving large sums of money.
The American Association of Retired Persons (AARP) recommends that families create a “fraud control system” in which one member is the designated gatekeeper who approves all transactions. Protecting your loved ones isn’t just about being there when something goes wrong. The important thing is to be there before it happens. (6)
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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 any warranty.
