One of the greatest joys in life is the bond between grandparent and grandchild. Even better, studies show this unconditional love has many benefits for both grandparents and grandchildren.[1] Unfortunately, being a grandparent may also make them targets of a deceitful scam known as “the grandparent scam.”[2] This scam preys on a grandparent’s love and concern for their grandchildren, attempting to exploit their emotions and financial generosity. It’s essential to be aware of this threat and take precautions to avoid falling victim to it.
How Does the Grandparent Scam Work?
Though there are variations of the grandparent scam, it typically unfolds like this: the grandparent receives a call from someone claiming to be their grandchild or another relative. They might say they’re in trouble, often in a distant location or in legal jeopardy. They urgently request financial assistance, usually asking for money to be wired.[3] They may know personal details about your family obtained from social media or other sources to make their story seem convincing.[4]
Protect Yourself from the Grandparent Scam
Scammers are highly manipulative and count on your emotional vulnerability to help the scam work. Here are some things to keep in mind to avoid this potential threat:
- Resist pressure to act quickly. Remain calm if you receive such a call. Scammers use a sense of urgency to influence grandparents to act quickly. Resist the sense of urgency and calm yourself enough to ask questions and take reasonable steps.
- Verify identity. Ask questions that only your grandchild would know, such as specific details about their childhood or recent family events. Don’t disclose any personal or financial information until you can confirm the caller’s identity.
- Contact family members. Reach out to another family member using a known and trusted phone number to verify the situation. Scammers discourage contacting others, so insisting on this step can deter them.
- Be skeptical of requests for money. Never wire money or provide credit card information over the phone, especially if the request is unexpected or comes with a sense of urgency. Real emergencies can usually be verified through other means.
- Guard personal information. Be cautious about what you share on social media and other public platforms. Scammers often gather information from these sources to make their impersonation more believable.
- Assign a family password. You and your loved ones can be proactive and create a family password. Whenever a family member, or someone supposedly calling on their behalf, contacts you with an emergency, you can ask for the password.
- Report suspicious activity. If you suspect you’ve been targeted by a scammer, report it to local law enforcement. You can also file a complaint with the Federal Trade Commission (FTC).[5]
As loving grandparents, the natural instinct is to protect and support your grandchildren. However, you must also protect yourselves from those who seek to take advantage of your kindness. By staying vigilant, verifying information, and refusing to disclose personal or financial details, you can help safeguard against falling victim to the grandparent scam.
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Unfortunately this scam works all too often. As a banker we have prevented losses for Grandparents. However, it is not without doing some battle with long-time customers who refuse to believe it is a scam.
The one aspect which is most puzzling is how some Grandparents go along with the phony “grandchild’s” request not to tell the Parents. That is red flag number one! How would the Grandparents have felt if their Parents (then serving as the Grandparents) hid a similar “issue”?
The second red flag is that if your bank is telling you you are being scammed, you are. Threatening to pull all your money out from the bank that is trying to protect you is the standard line and argument we hear routinely hear in these instances.
Oh, and if the “grandchild” suggests you buy gift cards from a big box store with your credit card because your bank refused, gave you only a limited amount of cash, or is closed, a third red flag has occurred.
There are more nuances, but should you receive a such a call, as noted in the article, immediately call another family member, especially your own children … the Parents of the Grandchild! You’ll quickly learn all is fine. And, even if not, the Parents need to know ASAP!
Have family in Phone contact list
Take NO outside calls
Inform PD, Sheriff