Question

A 79-year old widowed client telephones you, her representative, telling you the following: “I just received a phone call telling me that I have won the Mega Millions International Lottery, and that in order to release my winnings, I must wire $10,000 to pay for the international taxes due.” She gives you the international wiring instructions and directs you to send out the wire. What action should you take? A Follow the customer’s instructions B Do not follow the customer’s instructions and freeze the account from all transactions or removal of assets C Notify the trusted contact person on the account, who is listed as the client’s daughter, and place a hold on the requested wire transfer D Close the account and reopen a new account in the name of the trusted contact person, who is listed as the client’s daughter

Answer 1

Answer:

The correct answer is option C.

Explanation:

The phone call regarding the lottery here is most likely a fraud and scam to dupe elderly client.

The most appropriate action in this regard would be not to put a hold on sending the wire, and inform a trusted contact person, in this case, the client's daughter.

There is high chances that following client's instructions can lead to loss of $10,000.

Freezing account can cause inconvenience to the client.

So, the most appropriate action is option C.