Business
Column: 'My life cannot be ruined by this scammer.' Two victims lost everything and sued their banks
In a span of just three weeks in the summer of 2022, Alice Lin was swindled out of her life savings in an internet scam that began on a Chinese-language chat app. She lost more than $720,000 and sank so low that the 80-year-old two-time widow and mother of four considered taking her own life.
In the same year, Artemis Yaffe was targeted by a scammer posing as an IRS agent, losing her $1.8-million nest egg and — eventually — her home. It took less than two months for her life to be upended, sending the 77-year-old widow into a tailspin from which she has yet to emerge.
The scary thing is that as huge as these losses are, they’re not all that rare in the midst of an epidemic of ripoffs in which older adults, in particular, are targeted. The FBI’s Internet Crime Complaint Center fielded 3.26 million consumer complaints in the five years ending in 2022 and reports that $10.3 billion was lost in that last year alone.
California is about to be hit by an aging population wave, and Steve Lopez is riding it. His column focuses on the blessings and burdens of advancing age — and how some folks are challenging the stigma associated with older adults.
Lin and Yaffe acknowledge their own lapses in judgment, but they filed lawsuits this week against JPMorgan Chase & Co. for not putting a halt to their repeated mass wire transfers.
“My life cannot be ruined by this scammer,” a weeping Lin told me in the dining room of her Alhambra home. She said that after being cleaned out of savings amassed by herself and her late husband, a medical researcher, she prayed daily for strength, planted dozens of roses to brighten her yard (she earned a master’s degree in botany decades ago), and decided to share her experience to help spare others the same nightmare.
“I wouldn’t want anyone ever to go through this,” Yaffe, a retired respiratory therapist from Redwood City, told me by phone from the rental property where she now lives. A year after she lost her husband to pancreatic cancer, she had to sell her home of 40 years to help manage her bills.
The cases are similar to those of two internet fraud victims I wrote about last year. One was a financial services retiree who was duped into wiring money out of the country under the guise of fixing a billing discrepancy. The other was a retired educator who was led to believe, after responding to a bogus virus alert on her computer screen, that she was assisting in a criminal investigation by moving money out of her bank accounts and into bitcoin machines for transfer to a third party.
Each victim lost roughly $80,000. And each one told me they were embarrassed to have been duped so easily. But we live in a time of numbing digital bombardment, and it’s not uncommon for any of us to fall prey to well-executed scams.
“I once represented a Nobel laureate, and I’ve represented professors” who were scammed, said Anne Marie Murphy, a lawyer with Cotchette, Pitre & McCarthy, which filed the Lin and Yaffe lawsuits. “Research tells us … that when people’s brains age, they’re so much more susceptible, and these scams are sophisticated.”
JPMorgan Chase spokesman Peter Kelley sent me a statement that read in part:
“We urge all consumers to ignore phone or internet requests for money or access to their computer or bank accounts. Legitimate organizations or companies won’t make these requests, but scammers will.
“When customers visit our branches to complete wire transactions, our bankers ask questions, raise awareness around various scam scenarios and provide clear warnings that once a wire is sent, you may not be able to recover your money. These interactions occurred in this case when Ms. Yaffe and Ms. Lin authorized wires from their accounts.”
That’s not quite how Lin remembers it. She told me she was given warnings on documents provided by JPMorgan Chase only after she had wired sums ranging from $20,000 to $200,000. She also said her eldest daughter is co-owner of the account and should have been consulted by the bank.
Another daughter, Floy Shieh, sat with her mother during my interview and asked how it can be that financial institutions frequently contact customers to question credit card purchases, but her mother got little or no resistance while uncustomarily moving vast sums of money through her accounts on five visits to her South Pasadena JPMorgan Chase bank and one in Redondo Beach.
Yaffe told me she first went to her Bank of America branch in San Mateo County to wire money but was turned down after being queried about what sounded to bank employees like suspicious circumstances. She said she was coached by her scammer to go to JPMorgan Chase, where on one occasion she was asked about the purpose of the transfer, but the transaction was approved.
During another attempt at a JPMorgan Chase branch in Menlo Park, the lawsuit says, “an employee pulled Yaffe into a private room and told her that he would decline the transaction, stating, ‘If you were my mother, I would not let you do this.’ Nevertheless, on the very same day … Yaffe was able to take a short drive to a nearby Chase … and transfer $286,000.”
Lin and Yaffe told me they had no history of moving large sums of money into and out of accounts — which should have raised more questions from bank officials.
Should banks be doing more to help prevent this kind of fraud?
Put me down as a yes. At the very least, if one branch suspects fraud, why isn’t the account tagged so that a nearby branch is on alert?
“We all should be doing more, each and every one of us,” said Amy Nofziger of the AARP Fraud Watch Network.
Nofziger noted that lots of people make legitimate transfers unrelated to scams, and it can be difficult for banks to determine the true purpose. What’s more, she said, cryptocurrency-related scams are particularly prevalent at the moment. When I spoke to Nofziger on Wednesday morning, she said she’d just been in touch with a team member who told her, “I can’t believe how many crypto calls we’re getting today.”
In Lin’s case, the fraud began with a message from someone, a man, purportedly, asking if they knew each other. She said no, but he kept the conversation alive long enough to learn that she had been working in telehealth marketing recently, and he claimed he was in healthcare as well. Lin told him she had moved from Taiwan to the U.S. in the ’60s and lost two husbands to cancer. He claimed he’d lost his wife in a helicopter crash and sent her a photo that, he said, was taken in a hospital where he was recovering from the same accident.
Lin told him she had four grown children and cared for the youngest, who is disabled and lives with her. Her dream, she told him, was to have enough money so that her son could get by after her passing, and he told her he’d made good money investing in cryptocurrency.
Before long, he’d set Lin up with an online investment platform that showed big returns on her first deposit of $20,000. If she invested more, he said, she’d make more. So she kept wiring large sums of money, and trusted updated “statements” that indicated she’d made $300,000 in profits. Lin even called one of her daughters to ask for more money to invest. The daughter was immediately suspicious, but it was too late to retrieve any of the wired money.
Such operations are referred to by federal authorities as “pig butchering scams” — the victim is fattened up with confidence schemes before getting slaughtered. The fraud is sometimes orchestrated by Southeast Asian crime rings, authorities say, which use human trafficking victims to contact potential targets on dating apps and social media.
The Yaffe scam began when she was contacted by an alleged Amazon rep who was familiar with recent purchases and asked if she’d just bought four computers. When she said no, she was told she was being transferred to Amazon’s fraud department and, later, a supposed IRS investigator who told her that her Social Security number and name had been used by a criminal enterprise to set up fake companies. She needed to transfer her assets to protect her cash and establish her innocence.
“I was in so much shock, I couldn’t think clearly,” Yaffe told me.
The scammer went so far as to listen in on Yaffe’s phone, which was in her pocket, as she was turned down by Bank of America. Then he coached her to try Chase and to say she was investing in Hong Kong property for a meditation and alternative healing center she wanted to open. She followed instructions until her money was gone and the scammer was no longer reachable.
The Elder Fraud Protection Bill, introduced in Sacramento last year by Sen. Bill Dodd (D-Napa), could make banks liable if they assist in fraud schemes, knowingly or not.
“Banks must do a better job of preventing the most vulnerable Californians from getting ripped off,” Dodd said when introducing the legislation, which is scheduled for a hearing in June and is sure to face opposition from the banking industry.
Jacqui Serna, deputy legislative director for Consumer Attorneys of California, said the bill would require banks to step up fraud-prevention practices, including the consulting of secondary account holders or designated contacts.
“The primary thing is, we’re trying to get money back for the elderly person” who’s been fleeced, Serna said.
She added that four lawsuits similar to the Lin and Yaffe claims, which ask the court for restoration of losses, have led to settlements.
Lin, who testified at an earlier hearing on the Dodd bill, told me that after losing just about all of her retirement fund, she took up ballroom dancing to get her mind off her troubles.
And where did she dance?
At the Star Ballroom Dance Studio in Monterey Park, where 11 people were massacred a year ago in a shooting rampage. Lin said she knew some of the victims.
Lin said she has been comforted by her faith over the past few years, along with a close family and successful adult children who are helping with her bills.
If you suspect fraud or want to educate yourself on common scams and how to avoid being targeted, visit the FBI’s Internet Crime Complaint Center. Or check out the AARP Fraud Watch Network, which can be reached at (877) 908-3360.
steve.lopez@latimes.com
Business
U.S. Space Force awards $1.6 billion in contracts to South Bay satellite builders
The U.S. Space Force announced Friday it has awarded satellite contracts with a combined value of about $1.6 billion to Rocket Lab in Long Beach and to the Redondo Beach Space Park campus of Northrop Grumman.
The contracts by the Space Development Agency will fund the construction by each company of 18 satellites for a network in development that will provide warning of advanced threats such as hypersonic missiles.
Northrop Grumman has been awarded contracts for prior phases of the Proliferated Warfighter Space Architecture, a planned network of missile defense and communications satellites in low Earth orbit.
The contract announced Friday is valued at $764 million, and the company is now set to deliver a total of 150 satellites for the network.
The $805-million contract awarded to Rocket Lab is its largest to date. It had previously been awarded a $515 million contract to deliver 18 communications satellites for the network.
Founded in 2006 in New Zealand, the company builds satellites and provides small-satellite launch services for commercial and government customers with its Electron rocket. It moved to Long Beach in 2020 from Huntington Beach and is developing a larger rocket.
“This is more than just a contract. It’s a resounding affirmation of our evolution from simply a trusted launch provider to a leading vertically integrated space prime contractor,” said Rocket Labs founder and chief executive Peter Beck in online remarks.
The company said it could eventually earn up to $1 billion due to the contract by supplying components to other builders of the satellite network.
Also awarded contracts announced Friday were a Lockheed Martin group in Sunnyvalle, Calif., and L3Harris Technologies of Fort Wayne, Ind. Those contracts for 36 satellites were valued at nearly $2 billion.
Gurpartap “GP” Sandhoo, acting director of the Space Development Agency, said the contracts awarded “will achieve near-continuous global coverage for missile warning and tracking” in addition to other capabilities.
Northrop Grumman said the missiles are being built to respond to the rise of hypersonic missiles, which maneuver in flight and require infrared tracking and speedy data transmission to protect U.S. troops.
Beck said that the contracts reflects Rocket Labs growth into an “industry disruptor” and growing space prime contractor.
Business
California-based company recalls thousands of cases of salad dressing over ‘foreign objects’
A California food manufacturer is recalling thousands of cases of salad dressing distributed to major retailers over potential contamination from “foreign objects.”
The company, Irvine-based Ventura Foods, recalled 3,556 cases of the dressing that could be contaminated by “black plastic planting material” in the granulated onion used, according to an alert issued by the U.S. Food and Drug Administration.
Ventura Foods voluntarily initiated the recall of the product, which was sold at Costco, Publix and several other retailers across 27 states, according to the FDA.
None of the 42 locations where the product was sold were in California.
Ventura Foods said it issued the recall after one of its ingredient suppliers recalled a batch of onion granules that the company had used n some of its dressings.
“Upon receiving notice of the supplier’s recall, we acted with urgency to remove all potentially impacted product from the marketplace. This includes urging our customers, their distributors and retailers to review their inventory, segregate and stop the further sale and distribution of any products subject to the recall,” said company spokesperson Eniko Bolivar-Murphy in an emailed statement. “The safety of our products is and will always be our top priority.”
The FDA issued its initial recall alert in early November. Costco also alerted customers at that time, noting that customers could return the products to stores for a full refund. The affected products had sell-by dates between Oct. 17 and Nov. 9.
The company recalled the following types of salad dressing:
- Creamy Poblano Avocado Ranch Dressing and Dip
- Ventura Caesar Dressing
- Pepper Mill Regal Caesar Dressing
- Pepper Mill Creamy Caesar Dressing
- Caesar Dressing served at Costco Service Deli
- Caesar Dressing served at Costco Food Court
- Hidden Valley, Buttermilk Ranch
Business
They graduated from Stanford. Due to AI, they can’t find a job
A Stanford software engineering degree used to be a golden ticket. Artificial intelligence has devalued it to bronze, recent graduates say.
The elite students are shocked by the lack of job offers as they finish studies at what is often ranked as the top university in America.
When they were freshmen, ChatGPT hadn’t yet been released upon the world. Today, AI can code better than most humans.
Top tech companies just don’t need as many fresh graduates.
“Stanford computer science graduates are struggling to find entry-level jobs” with the most prominent tech brands, said Jan Liphardt, associate professor of bioengineering at Stanford University. “I think that’s crazy.”
While the rapidly advancing coding capabilities of generative AI have made experienced engineers more productive, they have also hobbled the job prospects of early-career software engineers.
Stanford students describe a suddenly skewed job market, where just a small slice of graduates — those considered “cracked engineers” who already have thick resumes building products and doing research — are getting the few good jobs, leaving everyone else to fight for scraps.
“There’s definitely a very dreary mood on campus,” said a recent computer science graduate who asked not to be named so they could speak freely. “People [who are] job hunting are very stressed out, and it’s very hard for them to actually secure jobs.”
The shake-up is being felt across California colleges, including UC Berkeley, USC and others. The job search has been even tougher for those with less prestigious degrees.
Eylul Akgul graduated last year with a degree in computer science from Loyola Marymount University. She wasn’t getting offers, so she went home to Turkey and got some experience at a startup. In May, she returned to the U.S., and still, she was “ghosted” by hundreds of employers.
“The industry for programmers is getting very oversaturated,” Akgul said.
The engineers’ most significant competitor is getting stronger by the day. When ChatGPT launched in 2022, it could only code for 30 seconds at a time. Today’s AI agents can code for hours, and do basic programming faster with fewer mistakes.
Data suggests that even though AI startups like OpenAI and Anthropic are hiring many people, it is not offsetting the decline in hiring elsewhere. Employment for specific groups, such as early-career software developers between the ages of 22 and 25 has declined by nearly 20% from its peak in late 2022, according to a Stanford study.
It wasn’t just software engineers, but also customer service and accounting jobs that were highly exposed to competition from AI. The Stanford study estimated that entry-level hiring for AI-exposed jobs declined 13% relative to less-exposed jobs such as nursing.
In the Los Angeles region, another study estimated that close to 200,000 jobs are exposed. Around 40% of tasks done by call center workers, editors and personal finance experts could be automated and done by AI, according to an AI Exposure Index curated by resume builder MyPerfectResume.
Many tech startups and titans have not been shy about broadcasting that they are cutting back on hiring plans as AI allows them to do more programming with fewer people.
Anthropic Chief Executive Dario Amodei said that 70% to 90% of the code for some products at his company is written by his company’s AI, called Claude. In May, he predicted that AI’s capabilities will increase until close to 50% of all entry-level white-collar jobs might be wiped out in five years.
A common sentiment from hiring managers is that where they previously needed ten engineers, they now only need “two skilled engineers and one of these LLM-based agents,” which can be just as productive, said Nenad Medvidović, a computer science professor at the University of Southern California.
“We don’t need the junior developers anymore,” said Amr Awadallah, CEO of Vectara, a Palo Alto-based AI startup. “The AI now can code better than the average junior developer that comes out of the best schools out there.”
To be sure, AI is still a long way from causing the extinction of software engineers. As AI handles structured, repetitive tasks, human engineers’ jobs are shifting toward oversight.
Today’s AIs are powerful but “jagged,” meaning they can excel at certain math problems yet still fail basic logic tests and aren’t consistent. One study found that AI tools made experienced developers 19% slower at work, as they spent more time reviewing code and fixing errors.
Students should focus on learning how to manage and check the work of AI as well as getting experience working with it, said John David N. Dionisio, a computer science professor at LMU.
Stanford students say they are arriving at the job market and finding a split in the road; capable AI engineers can find jobs, but basic, old-school computer science jobs are disappearing.
As they hit this surprise speed bump, some students are lowering their standards and joining companies they wouldn’t have considered before. Some are creating their own startups. A large group of frustrated grads are deciding to continue their studies to beef up their resumes and add more skills needed to compete with AI.
“If you look at the enrollment numbers in the past two years, they’ve skyrocketed for people wanting to do a fifth-year master’s,” the Stanford graduate said. “It’s a whole other year, a whole other cycle to do recruiting. I would say, half of my friends are still on campus doing their fifth-year master’s.”
After four months of searching, LMU graduate Akgul finally landed a technical lead job at a software consultancy in Los Angeles. At her new job, she uses AI coding tools, but she feels like she has to do the work of three developers.
Universities and students will have to rethink their curricula and majors to ensure that their four years of study prepare them for a world with AI.
“That’s been a dramatic reversal from three years ago, when all of my undergraduate mentees found great jobs at the companies around us,” Stanford’s Liphardt said. “That has changed.”
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