92-year-old woman loses life savings in online scam

CBS News

24 Sept 202404:46

Summary

TLDRThis segment covers the growing issue of overseas scammers targeting vulnerable Americans, especially the elderly. Leslie recounts how her mother fell victim to a scam where criminals, posing as government agents, convinced her to withdraw her life savings to buy gold. Despite pleas to her bank, Charles Schwab, no action was taken as banks are limited in what they can do without government backing. Some banks, however, are training staff to spot unusual transactions. The investigation also highlights efforts to expose scam operations overseas, showing the scale of the problem.

Takeaways

💰 Overseas online scammers are increasingly targeting vulnerable Americans, stealing billions of dollars.
💼 Jim Axelrod interviews a woman whose elderly mother lost her life savings to an overseas scam.
🔔 Leslie, the daughter, was alerted by Charles Schwab about suspicious transactions from her mother’s investment account.
👩‍💻 Scammers pretended to be government IT experts and convinced Leslie's mother to withdraw money to buy gold as a 'safer investment.'
🤐 The scammers told the elderly woman to keep the transactions secret, fearing government repercussions.
📑 Leslie was a trusted contact on Schwab’s paperwork but had no idea her mother was being scammed.
🏦 Charles Schwab, like other financial institutions, is limited in preventing clients from accessing and transferring their own money.
🚨 Some banks, like credit unions, are training tellers to recognize unusual withdrawal patterns and alert trusted contacts or authorities.
👮 Involving local police can sometimes make it easier for scam victims to understand they're being defrauded.
🌍 CBS News is investigating international scam operations, including exposing scammers in Ghana who justify their actions.

Q & A

What is the main focus of the story in the transcript?
-The main focus is on the growing epidemic of overseas online scammers robbing vulnerable Americans, especially elderly individuals, of their life savings.
Who is the primary victim discussed in the story?
-The primary victim discussed is an elderly woman named Ruth, who was scammed into taking money out of her investment account to buy gold, believing it was a safer investment.
How did the scammers convince Ruth to withdraw her money?
-The scammers pretended to be IT experts from the government, claiming her computer had been hacked, and convinced her to withdraw money to buy gold as a safer investment.
What role did Leslie play in this case?
-Leslie, Ruth's daughter, was listed as a trusted contact on Ruth’s Charles Schwab account. She was alerted by Schwab about large wire transfers and tried to find out more about what was happening.
Why did Ruth not tell her family about the scam?
-The scammers told Ruth to keep the situation a secret, warning that the government might punish her and that her family could get into trouble if she revealed anything.
What is Charles Schwab's stance on stopping suspicious transactions?
-Charles Schwab stated that it's difficult for them to prevent clients from making transactions, as it is ultimately their money, and intervening could lead to complaints if legitimate investments are blocked.
What do financial institutions want from the government in such cases?
-Financial institutions like Schwab are seeking government backing to step in and block transactions when they have reason to believe a client is being scammed.
How are some banks handling suspicious transactions?
-Some banks, like a credit union in Iowa, train their tellers to recognize unusual withdrawal patterns and involve family members or trusted contacts to prevent scams. They also collaborate with local police to intervene.
What is one method that might help convince scam victims they are being defrauded?
-Involving law enforcement, such as having a police officer explain the scam, can sometimes be more effective in convincing victims they are being defrauded compared to a family member's warning.
What can viewers expect from this investigative story?
-Viewers can expect a detailed investigation, including footage of a boiler room in Ghana where scammers operate, and interviews with the scammers explaining why they do it. This will air on CBS Evening News and CBS Mornings.

Outlines

00:00

💻 Growing Epidemic of Overseas Scammers

Earlier this year, CBS reported on the rise of online scammers targeting vulnerable Americans, especially the elderly. These criminals often operate from overseas, using elaborate schemes to steal billions of dollars. In this update, Jim Axelrod talks to a woman whose elderly mother lost her life savings to such a scam, despite pleas for her bank to intervene.

📞 The Shocking Discovery

Leslie recalls receiving a call from Charles Schwab's financial crimes team about large transactions in her mother’s account. She was unaware of any such activity. Leslie's mother was one of many Americans who fell victim to scammers posing as government IT experts. They convinced her to withdraw money to invest in gold, falsely claiming it was a safer option.

🔒 Keeping It Secret

The scammers manipulated Leslie’s mother into keeping everything secret, playing on her fear of government repercussions. Even when her family inquired about the gold, she refused to divulge details, highlighting the deep psychological grip scammers had over her.

💼 Bank Limitations

Jim Axelrod explains that Charles Schwab did not agree to an interview but emphasized that banks face limitations. They cannot prevent clients from accessing their own money, even if it might be under suspicious circumstances. Banks are hesitant to block transactions without clear government backing.

🏦 The Role of Banks and the Government

The investigation focuses on banks as the last line of defense against scammers. Some banks, like credit unions in Iowa, are proactive, training tellers to recognize suspicious withdrawal patterns and notify trusted contacts. They also work with local authorities to prevent further losses. However, not all banks take such preventative measures.

🌍 A Glimpse into the Scammers' World

CBS News’ Deborah Patta provides a rare insight into the operations of scammers in Ghana, visiting a boiler room where they target Americans. The scammers openly discuss their actions, shedding light on the motivations behind their schemes. This segment is part of an ongoing investigative report that will air across multiple CBS platforms.

Mindmap

Keywords

💡Online Scammers

Online scammers refer to individuals or groups who use the internet to deceive and defraud people, often targeting vulnerable individuals like the elderly. In the video, these scammers posed as government officials and convinced victims like Ruth to make large financial transactions under the guise of security concerns, which is central to the theme of financial exploitation.

💡Elderly Victims

Elderly victims are older individuals who are often targeted by online scammers due to their perceived vulnerability. In the script, Ruth, Leslie's mother, is one such victim who lost her life savings to these criminals, demonstrating how scammers exploit trust and fear to manipulate their victims.

💡Charles Schwab

Charles Schwab is a major financial institution mentioned in the video. Ruth had an investment account with Charles Schwab, and the bank's inability to prevent her from making fraudulent wire transfers highlights the limitations financial institutions face when dealing with such scams. This illustrates the challenges in protecting customers from fraud.

💡Trusted Contact

A trusted contact is a person designated by a bank account holder to be contacted if suspicious financial activity occurs. In the video, Leslie was listed as a trusted contact for her mother Ruth’s account at Charles Schwab, but the scammers’ manipulation caused Ruth to hide her actions from her family, undermining this protective measure.

💡Financial Crimes Investigations

Financial crimes investigations refer to the efforts by financial institutions and law enforcement to investigate fraudulent activities. The video mentions Charles Schwab’s financial crimes investigations team contacting Leslie about suspicious activity in her mother’s account, which underscores the bank’s role in identifying potential fraud but also their limitations in preventing it.

💡Government Backing

Government backing refers to the desire of financial institutions for clearer regulations or authority from the government to intervene in suspicious transactions. The video discusses how banks like Charles Schwab want government support to step in and stop fraudulent activities, as they fear liability if they act without official endorsement.

💡Romance Scammers

Romance scammers are individuals who deceive victims by pretending to be romantically interested in them, often to steal money. Although not the primary focus of this video, it is mentioned as part of a broader investigation into online fraud, highlighting how scammers use personal relationships to manipulate victims, particularly on dating platforms.

💡Wire Transfers

Wire transfers are electronic transactions that allow money to be moved between accounts, often internationally. In this case, Ruth was convinced to withdraw money from her account and make large wire transfers to purchase gold, illustrating how scammers trick victims into making irreversible financial transactions.

💡Boiler Room

A boiler room is a term used to describe a physical location where scammers operate, usually working in teams to execute fraudulent schemes. The video mentions that CBS News correspondent Deborah Patta visited a boiler room in Ghana where scammers orchestrated these frauds, shedding light on the organized nature of these crimes.

💡Life Savings

Life savings refer to the total amount of money someone has accumulated over their lifetime, often meant to support them in retirement. Ruth lost her life savings to scammers, which is a central tragedy of the story, illustrating the devastating personal and financial impact that these crimes can have on elderly victims.

Highlights

Online scammers are increasingly targeting vulnerable Americans, leading to billions of dollars in losses.

A woman named Leslie discovered her elderly mother lost her life savings to overseas scammers.

Scammers posed as IT experts from the government, convincing victims to withdraw money to purchase gold.

Leslie's mother was told to keep her transactions secret, making it harder for family members to intervene.

Leslie was listed as a trusted contact on her mother’s Charles Schwab investment account but was unaware of the fraudulent activity.

Charles Schwab representatives contacted Leslie after noticing unusual large transactions and wire transfers.

Banks are limited in what they can do to prevent clients from accessing their own money, even in cases of suspected fraud.

Financial institutions like Charles Schwab want government backing to intervene in cases of suspected financial abuse.

Credit unions, like one in Iowa, are training tellers to recognize suspicious withdrawal patterns and contact family members for verification.

Some credit unions collaborate with local police to intervene when elderly customers are being scammed.

Scammers often make victims feel they are in trouble with the government, increasing their control over the victim.

The CBS investigation highlights the role of banks as the last line of defense in preventing scams.

In some cases, victims believe they are making legitimate investments and are hesitant to listen to family or authorities.

CBS News correspondent Deborah P visited a scammer boiler room in Ghana to expose how these fraud operations are carried out.

The investigation showcases the difficulty banks face in balancing customer autonomy with protecting them from scams.