Just ran across this item from the Sunday New York Times on the massive financial fraud perpetrated against older Americans. Playing a central role in this infuriating story: Wachovia, which these days leads with the (somewhat creepy) claim that "we are absolutely obsessed with satisfying our customers." Sure. Tell that to 92 year-old Richard Guthrie, whose life savings were drained while Wachovia allegedly looked the other way.
Here's the basic scam: A "friendly" caller engages an elderly citizen in conversation, solicits personal information, including account numbers, in order to "update files" at an insurance company or government agency. How'd the caller get the recipients' contact information in the first place? From lists of those who've signed up for sweepstakes, among other sources. "These people are gullible," one list said. "They want to believe that their luck can change."
And how's this for heartbreaking: "'I loved getting those calls,' Mr. Guthrie said in an interview. 'Since my wife passed away, I don't have many people to talk with. I didn't even know they were stealing from me until everything was gone.'"
This civil suit is apparently the first to target Wachovia for conspiracy to commit financial fraud. We don't think it'll be the last. And we suspect Wachovia, for all its apparent complicity, won't be the only target of such litigation. At this juncture, Payment Processing Center ("PPC") and infoUSA appear to be leading players in this awful story. In filing criminal charges against PPC in 2006, the U.S. Attorney in Philadelphia noted that "Wachovia received thousands of warnings that it was processing fraudulent checks, but ignored them." That's ugly stuff.
With more American living longer lives, it becomes more important than ever for their children and other caregivers to help them avoid these infernal rackets. And it becomes the moral responsibility of the business community to detect, disrupt, and report any and all fraudulent abuses of our senior citizens (and the rest of us, for that matter).
UPDATE: While we're at it, here's another fabulous new "service" from the banking industry: Gift cards with fine-print terms ridiculous enough to un-sell the product...if would-be buyers can bring themselves to read 'em.
LATER UPDATE: Last year, we received a $25 "gift card" from the bank that did our mortgage. Not sure if there were any fees embedded in the thing, but there was another problem: It didn't work anywhere but Starbucks! And sometimes not even there...
Source
Charles Duhigg, "Bilking the Elderly, With a Corporate Assist," New York Times, May 20, 2007
"Civil Suit Alleges Wachovia Conspired With Payment Processor in Scheme to Defraud Elderly," PR Newswire, April 12, 2007
David Colker, "The incredible shrinking present: Bank gift cards may be convenient, but obscure fees can quickly deplete their face value," Los Angeles Times, May 20, 2007
