Financial crimes are now a worldwide multi-billion dollar "industry," often targeting the most vulnerable older Americans, the lonely, and the financially unsophisticated, so it's natural that some people are wondering what to do about it.
Sometimes referred to as "pig butchering" when rip-off artists ask for increasing payments, the scams are often orchestrated by criminal gangs in Southeast Asia and West Africa, according to The Wall Street Journal, and the schemes are landing financial experts in difficult positions.
Although some victims and others are calling for more involvement and protection from banks and financial advisors, money and business expert Derrick Kinney says banks can't control the financial actions of their customers and advisors should already be exercising their fiduciary obligations by explaining potential scams to their clients.
Oftentimes the rip-offs start small, he says.
"Whether it's a crypto scam, or it appears to be an email from your bank asking you to click this button to confirm your account number," or even romantic overtures over social media from people who have secretly acquired financial information about you, the financial crimes can grow quickly into situations where tens of thousands and hundreds of thousands are lost by unsuspecting victims.
Banks have very little liability in such schemes that require individuals to move money around to fulfill the scams, but some institutions are already trying to help.
"Many banks, as part of their procedure, when clients or customers are above a certain age, are asking people if this is an abnormally larger withdrawal, they'll ask about what is this being used for? Are you being scammed right now?
"And then it allows the customer to verbalize the situation to the bank. But then if the bank proceeds with the transaction, that's when the bank may have some liability."