How to help protect seniors against the grandparent scam

Have your parents ever mentioned getting a call from a family member or friend telling them something terrible has happened, a car accident for example, and they need money?

Grandparents often have a tough time saying no to their grandchildren, which is why scams like this are a hit amongst fraudsters. Thanks to sophisticated tactics they use, like “spoofing” the caller ID or using AI to clone a loved one’s voice, it’s getting more challenging to determine if a call like this is legitimate or a scam. Educating yourself and elderly parents is the best way to know how to spot a scam and even more importantly, falling for one.

How does the scam work?

Generally, a grandparent may receive a call from someone impersonating their grandchild. They’ll claim to be in trouble and will request money right away. They could say they were in a car accident with a rental car and they are under arrest or in jail. The caller will sometimes have a second person on the call pretending to be a police officer or lawyer to make the story more believable.

Next, the caller or “grandchild” will tell the victim they don’t want their parents or any other family members to know about the incident because of the possibility of embarrassment or being grounded. This causes the grandparents to not get a second opinion or fact check the situation with another family member, making the scam more likely to be successful.

When the caller asks for money, after using a mixture of the strategies above, the grandparent may be persuaded to help. The grandparent will then withdraw cash from their account and wire the “grandchild” money. Sending by wire transfer is encouraged by the fraudster, as they can be harder to track and reverse.

Why are seniors targeted?

Seniors are typically targeted for scams like this one because:

• They are less familiar with technology and will be more likely to respond to the scams.
• Seniors usually have more savings than other young couples, making them an ideal target.
• Limited social network size, loneliness, and social isolation are also risk factors for elder financial abuse.
• Cognitive deficits and dementia can affect a senior’s ability to use good judgement in financial decisions.

How can I protect myself and my family

• If you or someone you love receives a call like this, be sure to ask who is calling, and if it doesn’t feel right ask a question that only the real grandchild would answer correctly.
• Do not provide extra information that the scammer can use – such as saying, “My grandchild’s name isn’t Jason, its James!”
• Resist the urge to act right away, and don’t be afraid to hang up immediately or say no.
• Before transferring money, double check with other family members to verify the story.
• Never wire money to someone if you have any hesitation.
• Never provide personal account or banking information over the phone.
• Make sure your using strong passwords that are harder for scammers to guess.
• Never re-use passwords for multiple accounts.

If you’re interested in learning more or have any questions, you can call 1.866.863.6237.

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