We have all heard of the traditional Grandparent’s Scam. An elderly person gets a phone call seemingly from a relative (usually a grandchild) with some disaster and needs money fast. The caller uses all the pressure tactics to make the victim act without thinking and send them money. While the victim is sure they are helping out a loved one, in reality, the scammer is the one helping themselves to the money. By the time the victim realizes what has happened, the scammer is long gone and there is little to no way to track them down. That scenario is traumatic enough even with limited contact between fraudster and victim. Now, fraudsters have taken the Grandparent’s scam to a whole new level. Earlier this month, 13 criminals were arrested in connection with a frightening twist on this type of scam. Working out of a warehouse in the Dominican Republic, over 400 people were swindled in a highly organized version of the grandparent’s scam. The scammers used unsuspecting Uber drivers as money mules, transporting runners to the victim’s houses to collect money. These people got away with over $5 million dollars! Concerned Uber drivers are who alerted the police of the activity and made it possible for these scammers to be caught. While researching the topic further, I discovered instances of this going back to 2020 in several states all across the US, but this was the first time I heard about criminals actually travelling to the victim’s houses. In light of the recent arrests, let’s remind ourselves about this scheme; warning signs and how to protect yourselves and loved ones.
Why the scam works:
Scammers do their homework and target an elderly person with a phone call from someone claiming to be a relative, most often a grandchild. Sometimes the caller has the grandchild’s name, other times they wait for the victim to say it. They present a problem; had an accident and need money, got arrested and need to be bailed out, sickness, car trouble just to name a few. The caller sounds distressed and worried, they need the money right away and beg the victim for help. They plead with the caller to keep it a secret from other family members. To make matters worse, fraudsters are now using AI to mimic voices and spoof telephone numbers to make the scam more believable. Of course scammers target older people for several reasons, one of them being that when faced with a situation like this most will panic and agree to the demands. The whole thing happens so fast, before they know it, the victim has either given out their account information or has agreed to send money via gift cards, wire transfers, money transfers (Cash App, PayPal, Venmo), or sometimes even putting straight cash in the mail. Once the money is sent and the victim has time to think about it, they realize that may not have been their grandchild at all. However, it is too late at that point; the money is gone most likely never to be recovered. In 2024 alone, $2.7 million was reported in losses due to grandparent’s scams.
How to protect yourself:
- Be skeptical! You can’t trust calls or messages from an unknown number claiming to be a relative. You can’t always trust caller ID, either. Verify the caller’s identity by asking questions only that person would know the answer to. Old pet’s names or trips you may have taken, shared memories and inside jokes are a great way to determine if you are speaking to the correct person or a pretender. If you receive a call from someone claiming to be a relative asking for money, hang up and call them yourself on a number that you know and trust. Or at the very least, contact another trusted person who can help you figure out if the story you are getting is true.
- Don’t let the caller rush or guilt you into making a rash or panicked decision. Scammers use these pressure tactics to manipulate their victims into acting first and thinking after. Stop, breath, think, before acting.
- Absolutely NEVER send money through a method that is hard to trace. No gift cards, no wire transfers (bank or Western Union), no Cash App no Venmo no Paypal or Zelle, and do not ever send cash through the mail!
- Don’t give your address, bank account, or any other personal information to anyone you don’t know. Giving out your address is just asking for someone to show up uninvited to your house. Any time you are on a call and start to feel uncomfortable, simply hang up. If an unknown number calls, it’s ok to not answer at all.
- You can always contact the bank with any questions or concerns about your account, we are here to help!
- If you feel that you have fallen victim to any scam, Grandparent or otherwise, please report it to local law enforcement as soon as possible.
Please remember, if an employee of Exchange Bank contacts a customer about potential fraud, it is done out of care and concern for the well being of that customer. We want to safeguard our customer’s finances and ensure that those hard earned dollars don’t fall into the wrong hands. Also, it is a good idea to keep an open line of communication with your trusted family and friends. This way, if you are contacted by a scammer pretending to be your grandchild, you can be confident in your ability to decipher truth from fiction. Anyone could potentially fall victim to a scam at any time. By staying informed, learning the warning signs, and stopping to think before acting, we all have a greater chance of ending a scam before it is too late.
