Good morning all and welcome to another Fraud Friday. Today we are continuing our May Senior Fraud Awareness month series with another common scam that targets the elderly, the Grandchild Scam. We have covered this one before, but it is so important to refresh because this particular scam is still out there and only getting more sophisticated. It is called the Grandchild or Grandparent Scam, but it isn’t limited to just a grandchild. The scammers could pretend to be children, siblings, close friends, or anyone who they believe an elderly person would rush to help out of a jam. Let’s look at this scam and learn how to safeguard yourself and not become a victim.
Imagine you are at home watching your favorite show or reading a book when you get a phone call from your Grandchild. You answer all excited to hear from them and suddenly it is instant panic as they excitedly explain that they are in trouble and desperately need your help. They have been arrested and need bail money or there has been an accident and they are at the ER and need money to pay the hospital. They may have even been responsible for the accident and will be arrested unless they pay up fast. You as a loving grandparent hear their voice and recognize it is them. You sense the fear and urgency which causes you to react rather than act. Before you have time to rationalize anything, your grandchild says please hurry, there isn’t much time to get this taken care of. So, you give up your credit/debit card information, routing and account number, go to the bank and send a wire, or go to a local store and purchase gift cards. The advancement of AI and technology have made it much easier for scammers to con people. They sometimes spoof phone numbers as to appear legit. AI can mock a voice perfectly, so you have no idea you aren’t talking to a scammer, it sounds so real and is very easy to fall for. As soon as the scammer receives the money, all contact ceases, and your information has been compromised and your money lost. This is the classic Grandparent Scheme, and it is used all the time to scam innocent elderly people out of their hard-earned money. These scammers prey upon the heart strings of elderly people who would do anything to help out their family members.
Here are ways to safeguard against a Grandparent Scam:
- Hang up and call your grandchild on a phone number you have and trust for them. Explain the situation and let them tell you the truth.
- Do not act quickly or with your emotions. The scammer is counting on you to make these moves. Do not let someone pressure you into making rash decisions, act rather than react.
- Never send money! No matter how desperate the person on the other end of the phone sounds, no matter how dire the situation seems, never allow yourself to be pressured into sending money.
- Never give out information over the phone! Also, do not agree to pay in gift cards, wires, prepaid cards, or crypto.
- Report any instance like this to your local police department and the Federal Trade Commission (FTC) as soon as possible.
People have lost their entire life savings in scams just like this. Scammers are not picky about who they target, either. It can happen to anyone at any time. Please share this information with someone you love. You never know when it might help save someone from the heartache of losing it all to this or any scam. As always remember, if you can spot a scam, you can stop a scam.
