FRAUD RESOURCE CENTER
Scam artists will use any leverage they can get to separate you from your money. Sadly, that includes exploiting grandparents’ love and concern for their grandchildren, giving rise to a breed of impostor fraud specifically targeting older Americans.
Grandparent scams typically work something like this: The victim gets a call from someone posing as his or her grandchild. This person explains, in a frantic-sounding voice, that he or she is in trouble: There’s been an accident, or an arrest, or a robbery. To up the drama and urgency, the caller might claim to be stuck in a foreign country; to make the impersonation more convincing, he or she will throw in a few family particulars, gleaned from the actual grandchild’s social media activity.
The impostor offers just enough detail about where and how the emergency happened to make it seem plausible and perhaps turns the phone over to another scammer who pretends to be a doctor, police officer or lawyer and backs up the story. The “grandchild” implores the target to wire money immediately, adding an anxious plea: “Don’t tell Mom and Dad!”
Fraudsters have also been known to ply this trick by email, text message and social media. It can be very lucrative — one former practitioner told CBS News that he could make as much as $10,000 on a good day. And it appears to be on the rise: The Federal Trade Commission (FTC) reports that family and friend impostor scams cost consumers $41 million in the 12 months ending Oct. 31, 2018, up from to $26 million the previous year. The median loss is $2,000, according to the FTC, more than four times the amount for all fraud types.
- The person claiming to be your grandchild asks you to send money immediately and provides details on how — for example, via prepaid cards or to a particular Western Union office.
- The call comes late at night. Scammers figure an older person may get confused more easily if they call then, the National Consumers League warns.
- Do set the privacy settings on your social media accounts so that only people you know can access your posts and photos. Scammers search Facebook, Instagram and other social networks for family information they can use to fool you.
- Do ask questions someone else is unlikely to be able to answer, such as the name and species of your grandchild's first pet.
- Do say you’ll call right back, then call your grandchild’s usual phone number. With luck, he or she will answer, and you’ll know that the supposed emergency call is a scam.
- Do contact other family members or friends and see whether they can verify the story. Scammers plead with you to keep the emergency a secret precisely so you won’t try to confirm it.
- If you speak to someone who claims to be a police officer, do call the relevant law enforcement agency to verify the person’s identity and any information they’ve given you.
- Do trust your instincts. As the American Bar Association advises, if something doesn’t feel right, it probably isn’t.
- Don’t drop your guard because the number on your caller ID looks familiar. Scammers can use technological tricks to make it appear that they’re calling from a trusted number, the Federal Communications Commission warns.
- Don’t volunteer information — scammers fish for facts they can use to make the impersonation believable. For example, if the caller says, “It’s me, grandpa!” don’t say your grandchild’s name. Wait for the caller say it.
- Don’t let a caller rush you into making a decision.
- Don’t send cash, wire money, or provide numbers from gift or cash-reload cards to a person claiming to be a grandchild. Scammers prefer those payment methods because they’re difficult to trace.
- Don’t panic, no matter how dire the grandchild’s predicament sounds. Scam artists want to get you upset to distract you from spotting the ruse.
- You can report any fraud targeting older people to the FTC online or at 877-3824357. You might also want to notify your state's attorney general and consumer protection office.
- If you sent money to a suspected scammer via Western Union, call the company’s fraud hotline (800-448-1492) as soon as possible. Ditto if you used MoneyGram (800-926-9400). If the transfer has not yet been paid, Western Union or MoneyGram may be able to stop the transaction and refund your money.
Published: Dec. 3, 2018
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