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Money August 2012

Dollar Sense

Grandparents Beware! Your “Grandkids” May Be Picking Your Pockets… Or Are They?

By Teresa Ambord

With even a few of those facts a scam artist can put together enough information to impersonate your grandson for the few seconds it takes to terrify you, and get you to send rescue money. And don’t think that will be the end of it. When they find a willing victim, they will probably call back asking for more.

Desperate times call for desperate measures, right? That’s what thieves count on. They stay up nights finding ways to steal from you even if it means striking terror in your hearts for the safety of your grandkids. There are variations on this “Grandparents Scam,” but the intent is always the same.

Here’s an example:

You get a call, late at night, waking you. “Grandma, it’s me Paul! I’m in trouble.” He’s upset, talking fast, not making much sense. He’s so overwrought that it’s hard to recognize his voice. He explains that he was traveling in Mexico and got into a car accident. He damaged someone’s car, didn’t have proof of insurance, and now he’s being held by the authorities till he pays for the damages. “Please send money Grandma! Please hurry, and whatever you do, don’t tell Mom and Dad.”

 

This is just one version of the scam, but note some of the key elements:

  • The calls may be made late at night or early in the morning. Why? Because thieves are counting on you to be a little disoriented, thinking less clearly when you are not quite awake. Don’t do anything under pressure. Ask for a number where you can call the person back after you’ve done some checking. If the caller refuses, you know it is probably a scam.
  • The caller sounds desperate. Obviously this is to tug at your heartstrings, but also because the excitement in his voice helps to explain why he sounds different to you.
  • The money must be sent right away. The sense of urgency makes it more likely that you’ll rush to the bank and act quickly, before you have a chance to check out the story or grow suspicious and call the authorities.
  • And, of course, the clincher is, “Please don’t tell Mom and Dad.” Because the thieves know the worst thing that can happen is for you to call the people who may be able to bust the scam.

The Grandparent Scam has been around since about 2008, according to the Better Business Bureau. Here’s how they describe a typical call:

“The grandparent receives a distressed phone call from who they believe is their grandchild. The supposed grandchild typically explains that they are traveling in Canada and have been arrested or involved in an auto accident and need the grandparent to wire money to post bail or pay for damages — usually amounting to a few thousand dollars. The scammers’ basic tactic is to pose as a grandchild and let the unsuspecting grandparent fill in the blanks. For example, the scam caller might say, ‘It’s me, your favorite grandchild,’ to which the grandparent will guess the name of the grandchild it sounds the most like, and then the call proceeds from there.”

Another variation on the theme is that the caller may claim to be a doctor, attorney, or a police officer speaking for your child, who is in some kind of trouble. Sometimes the “grandchild” places the call, then hands the phone to the person claiming to be in authority to add another level of credibility to the story. Or vice versa, the person in authority may give the phone to the child for a quick “plea.”

 

What If They Have Real Information?

The scam may not be new, but it has gotten a new burst of energy lately thanks to social media sites, like Facebook and Twitter. Scammers comb these sites, putting together bits of information they can use to run the scam. No longer do they have to hope you’ll fall for the “it’s your favorite grandchild” ploy. There’s a good chance they can pluck off plenty of details, such as, your grandson’s name, the college he is attending and his major, the sports he plays, pets’ names, girlfriends and other friends, and where he likes to vacation. With even a few of those facts a scam artist can put together enough information to impersonate your grandson for the few seconds it takes to terrify you, and get you to send rescue money. And don’t think that will be the end of it. When they find a willing victim, they will probably call back asking for more.

Less bold scammers may skip the phone call and send out e-mails. One family in California got a mass e-mail plea for help. The message appeared to be from a young family member named Jennifer. She was in Europe, she said. She’d been mugged, everything was stolen She had no money, no passport, no ID, and the language barrier made the authorities of little help. Meanwhile, she couldn’t even buy herself a sandwich and hadn’t eaten in more than a day. “Please send money, even a few dollars, anything would help.” Many of the family members responded by promising to send money. But in the meantime, the real Jennifer’s mother began asking the right questions.

“Where’s T.C.?” she asked, in a return message. No answer. The mother knew Jennifer would not leave the United States without her daughter. The thieves might have been a little hard pressed to fake that one, since there was no way to know if T.C. was a male or female, child or adult, or even a dog. The mother did some fast checking and found the real Jennifer was safe at home, with T.C.

 

What should you do if receive a suspicious call?

According to the FBI:

  • Don't be pressured to act quickly.
  • Ask questions that would be difficult to answer unless you were actually in the family, like “Where’s T.C.?” or some detail that only your actual grandchild would know, like “Where did I used to take you every year for your birthday when you were little?”
  • Ask to contact the individual directly, in other words, ask for a call back number. Then call the parents or friends to see if the grandchild is really traveling.
  • Don't send money unless you're certain it is your family member.
  • If you've been scammed, contact local law enforcement immediately.

 

Teresa Ambord is a former accountant and Enrolled Agent with the IRS. Now she writes full time from her home, mostly for business, and about family when the inspiration strikes.

Meet Teresa