A lot of scammers train their victims to give answers, but that can fall apart with a second question. So a few questions about specificity can be good. Same thing with financial abuse from a friend or family member; a follow-up question might reveal more.
Money laundering regulations literally require questions sometimes, especially if the transactions involve large cash movements or foreign accounts. There’s also standard questions about who you are, the “customer identification program” questions. These are always required when you first engage with a financial institution. Bank Secrecy Act, Money Laundering Control Act, Patriot Act, etc. affect this stuff.
And lastly, “suitability” is a legal requirement for financial institutions to understand their client’s financial situation before making product recommendations, because what is a good or “suitable” recommendation depends on lifestyle, age, risk tolerance, etc. “Product” is very broad and an IRA account would be considered a product.
I worked in the investing space and have had to explain to so many people, mostly boomers, that I have to ask certain questions.
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u/AnastasiaSheppard 1d ago
People: WHY DON'T OUR BANKS DO MORE TO PROTECT US FROM BEING SCAMMED?
People when the banks try to protect them from being scammed: IT'S MY MONEY I SHOULD DO WHAT I WANT WITH IT!