Retirees Get Back $4,800 Lost to a 'Granny Scam'

As they fed a stack of bills into the ATM, the two didn't realize that con artists were pulling off a smash-and-grab with their nest egg — part of retirement assets they say they hope will last longer than they do.

The victims used a Wells Fargo ATM to send $4,800 to criminals.

Mira / Alamy Stock Photo

Their encounter with fraudsters began that morning when the wife answered the phone and a young man, posing as their teenage grandson, said he was in jail because he'd been arrested for a traffic accident while driving drunk. He said his cellphone had been taken away before he was locked up — which sounded plausible — and asked his grandmother to keep what he said “real private,” she recalls.

The “grandson” said he needed bail money and gave the name of his fake public defender, “Richard Benson” and a toll-free number to reach him. Next, a second fraudster entered the picture. A mature-sounding woman answered the phone at the phony public defenders’ office. She put the call through to a man who masqueraded as “Richard Benson,” the supposed public defender. He explained the plight of their “grandson” and said the courts were closed because of the pandemic. Then he instructed the couple to put $2,500 into an ATM at a local Wells Fargo bank, where he asserted the courts had an account. “Benson” gave her an eight-digit access number and four-digit PIN to effectuate the deposit. The couple got the cash from a drive-through lane at their credit union to make the first ATM deposit.

Greedy fraudsters come back for more

After that, the fraudsters weren't finished. In a follow-up call, “Richard Benson” said the grandson's car insurance had lapsed, so $2,300 was needed to secure his release. The couple went back to the credit union's drive-through — and back to the ATM. This time “Richard Benson” gave the couple a different access number and the same PIN.

"The second (deposit) was crazy,” the woman says now. “I felt in my heart that it probably was not right, but we did it anyway."

Immediately afterward they tracked down their grandson by phone; he said he'd been at work since 7 a.m. that day. The accident, the arrest, the need for cash — all lies. The truth quickly emerged. “We got ripped off big-time,” says the husband, a retired customer-service worker and a Vietnam-era Army veteran who was drafted and served stateside as a map compiler from 1968-1970.

That afternoon, the couple called Wells Fargo to try to retrieve their lost funds (without success, initially) and filed a complaint with the local police, who categorized the case as a “theft by deception."

Later the couple called Wells Fargo again, without satisfaction, and set up an appointment to visit their credit union; an appointment was required because of the pandemic. The credit union wouldn't return the money, either.

Sad scam has happy ending

After the couple's plight was conveyed to Wells Fargo officials and a copy of the police report was provided, Wells Fargo agreed on Aug. 21 to refund the couple $4,800.

In a statement to AARP, a Wells Fargo spokeswoman said: “These credit union customers made multiple cash withdrawals from their credit union account and deposited those funds into a Wells Fargo account. The credit union has elected not to reimburse their customers. Wells Fargo has elected to do what their credit union did not — refund the $4,800 and work with law enforcement to recover the money. As we combat fraud, we understand the frustration and anger of those who are victims of fraud."

A local police detective told AARP on Aug. 24 that he is pursuing new leads just provided by Wells Fargo.

The husband and wife want other older Americans to avoid the “nightmare” they endured, so are sharing their story. “How foolish can you be to put cash in the machine twice and not get a receipt? We got scammed,” the husband says now. “But they are so professional, so smooth, that they could have fooled anybody."

To be sure, they insist they will never use an ATM again. “We hadn't used it before that day and will never use it again,” the husband says. “Never. Ever.”

AARP’s Fraud Watch Network can help you spot and avoid scams. Sign up for free Watchdog Alerts, review our scam-tracking map, or call our toll-free fraud helpline at 877-908-3360 if you or a loved one suspect you’ve been a victim.