[Childhood Disability Benefits] questions, bipolar young man in trouble.

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Rickster8
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[Childhood Disability Benefits] questions, bipolar young man in trouble.

Post by Rickster8 »

[Topic is now in Personal Finance (Not Investing) - mod mkc]

I have a very good friend in his 30's who is bipolar and is collecting CDB (childhood disability benefits)

He has fallen prey to internet scammers, and already given them over $500. He doesn't work and has no money that is his own, it's from CDB or his parents.

Their scam involves sending or claiming to send $20,000 to his Paypal. account. IIUC this will be a phony deposit but will still show as a valid deposit until Paypal learns it's invalid. When scammers do something like this using checks and banks, I hear of deposits being reversed as much as 30 days later**. But Paypal says even international deposits clear in 3 days. That is hard to believe. Do you know how long it takes before the money can no longer be revoked?. Has the time period become so much shorter recently?

His parents are afraid that if his assets go above whatever CDB and SSA consider too much (5000, 10,000?) , he will lose his CDB/Medicare benefits, Does CDB monitor his accounts, or is this an honor system combined with punishment if someone doesn't disclose when he should?

If CDB somehow learns that his assets are higher than allowed, will they ask him for an explanation before they cancel his benefits? Or will it be automatic?

He still believes the scam is NO scam. IIRC he's supposed to keep 2000 and give away 18000, and he fully intends to give away 18 or 20,000. He thinks he is saving the life of an old sick woman***. Will they take seriously his parents' explanation, that the deposit is not for real, and therefore not cancel him?

They are afraid that the cancellation of benefits will occur and it will take months of paperwork to get back on the rolls, And he's over 22 now so he can't start into this program as a beginner. They would have to restore his prior status and some bureaucracies take forever. Medicare might also be cancelled and he has charges for medicine, counseling, occasional inpatient treatment, usually to protect him from self-harm.

Which of these worries is valid and which are never going to happen?

Any other suggestions even unrelated to money would be appreciated. He is a nice guy who always tries to be good, but his mind doesn't work like others do. His parents have been going through his bipolar problems for 15 years.

**Long after the target of the scam has withdrawn hundreds or thousands and sent them to a worthy person who is in reality the scammer.
*** His parents, a local minister whom he likes and respects, another clergyman, a bank officer, and I have all told him it's a lie and a scam, but he doesn't believe us.

TIA.
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LadyGeek
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Re: [Childhood Disability Benefits] questions, bipolar young man in trouble.

Post by LadyGeek »

Rickster8 wrote: Wed Jun 26, 2024 11:04 pm Any other suggestions even unrelated to money would be appreciated. He is a nice guy who always tries to be good, but his mind doesn't work like others do. His parents have been going through his bipolar problems for 15 years
Welcome! Please remember that this is a financial forum. Let's stick to the money aspects.
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retired@50
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Re: [Childhood Disability Benefits] questions, bipolar young man in trouble.

Post by retired@50 »

Some of your questions seem to be about the program's rules.

You may find some of those answers in the link below.

See link: https://www.ssa.gov/pubs/EN-05-10026.pdf

Regards,
"All of us would be better investors if we just made fewer decisions." - Daniel Kahneman
SwissCup
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Re: [Childhood Disability Benefits] questions, bipolar young man in trouble.

Post by SwissCup »

Tell him that he was used as a money mule and, by paying the 18k, committed a criminal offense. Or to put it differently, he received funds that were stolen from someone else and he shall now forward the funds elsewhere to hide the trace. That should hopefully wake him up and realise what was at stake.

With regard to the deposit, I would just do nothing for 31 plus days and post this (if the money was still there) go to Police.
barnaclebob
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Re: [Childhood Disability Benefits] questions, bipolar young man in trouble.

Post by barnaclebob »

I don't know what the bar is for the parents to seek conservatorship but that's one possible avenue in the medium to long term. Often people will dig in the more and refuse to believe that they are "dumb/vulnerable" enough to get scammed until something gives. Luckily he doesn't have some big nest egg that's at risk. I doubt his benefits will be at risk because a fraudulent deposit is not a real asset.

His big risk is that he runs up a big debt with paypal by sending out the $18k and then paypal claws back the money that was sent to him and wants to be paid for the 18k he sent out. But he may be judgment proof so maybe its not that big of a risk.


The parents should stop giving him money directly as long as this issue persists. They should pay for any needs directly.
barnaclebob
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Re: [Childhood Disability Benefits] questions, bipolar young man in trouble.

Post by barnaclebob »

SwissCup wrote: Thu Jun 27, 2024 9:51 am Tell him that he was used as a money mule and, by paying the 18k, committed a criminal offense. Or to put it differently, he received funds that were stolen from someone else and he shall now forward the funds elsewhere to hide the trace. That should hopefully wake him up and realise what was at stake.
Except this probably isn't true because he does not think he is acting as a mule and any such crime almost certainly requires that the perpetrator act with intention.
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Rickster8
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Re: [Childhood Disability Benefits] questions, bipolar young man in trouble.

Post by Rickster8 »

Thank you all. I've relayed it to his parents. So far, his parents have gotten him to disable the network parts of his computer, no Intenet , but when I tell him no one from a foreign country is going to find him and imprison him, he doesn't believe me. This part is so ridiculous I keep thinking he's making a joke, but I guess not. All of us whose mind works normally should be very grateful.
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Rickster8
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Re: [Childhood Disability Benefits] questions, bipolar young man in trouble.

Post by Rickster8 »

Thank you all. I've relayed it to his parents. So far, his parents have gotten him to disable the network parts of his computer, no Intenet , but when I tell him no one from a foreign country is going to find him and imprison him for failure to make good on a "promised" gift for which there was no detrimental reliance, and they only give money judgements at worst anyhow, not prison, and they don't let foreign countries arrest people, he doesn't believe me. This part is so ridiculous I keep thinking he's making a joke, but I guess not. All of us whose mind works normally should be very grateful.
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