80-year-old Alice Lin was tricked into wiring her life savings of $720,000 to an online scammer in August 2022. The grave situation made the Southern California widow contemplate suicide. However, Lin, who also takes care of her disabled son, decided to fight back for her money. Although the small-business owner repeatedly visited the Chase Bank for help, she eventually sued the bank as it failed to acknowledge she could have been a victim of elder fraud.
Pig-Butchering Tactics
An online scammer befriended Lin on the WeChat social media app and convinced her to invest in a crypto investment that would supposedly fetch high returns. The scammer employed "pig butchering" tactics to build trust with the victim over time on social media while executing fraudulent activities. "We talked about everything, including business, religion, and he kept saying we had a lot of things in common. He was trying to gain my trust," Lin told The US Sun. "This was his tactic, trying to gain my empathy."
Within a month, Lin had transferred $720,000 in multiple transactions over three weeks by visiting a Chase Bank branch in Pasadena. Only when the scammer asked Lin to borrow more money from her sister did she realise the scam. They went to federal investigations agencies to lodge a complaint and visited Chase Bank to understand how they could allow such transactions repeatedly.
JPMorgan Tries To Dismiss The Case But Fails
As Lin sought more answers from Chase Bank about how it could overlook multiple red flags, the institution claimed it tried. Lin's lawyer, Anne Marie Murphy, highlighted that the bank didn't notify the victim's daughter, a joint account holder, before approving the transactions. Lin's long-standing relationship with JPMorgan Chase makes it even more strange that the bank ignored the "out of character" or atypical transactions. Her legal team argues it was the bank's responsibility to identify that their customer was a victim of an online scam and take measures to protect Lin from elder abuse. During her senate testimony, Lin said that legitimate companies don't make money requests, which she received in the name of a crypto investment scheme. She added that it would have saved her $200,000 if the bank had stopped the last transaction. Lin is now suing JPMorgan Chase and successfully quashed the bank's attempt to dismiss the case.
Lawmaker Addresses Issue With New California Bill
Upon hearing Lin's ordeal, outgoing State Senator Bill Dodd decided to curb financial elder abuse. He felt it necessary to introduce Senate Bill 278 because some banks are almost "aiding and abetting" scammers. The bill passed both the Assembly and Senate with bipartisan support. It would mandate banks to create an emergency contact program and seek approval from an authorised user before approving suspicious transactions for elderly accountholders. The bill also allows banks to prolong transactions of over $5,000 for three business days if they suspect scams. In June, Lin supplied evidence to the California Assembly's Banking and Finance Committee as part of the new bill. She hopes her struggle will bring about a change that protects elders from cybercrimes.
