In 2023, older adults lost a staggering $3.4 billion to financial scams, with grandparent scams being among the most insidious. These scams prey on the deep love and trust grandparents have for their grandchildren, exploiting their willingness to help in times of perceived crisis. The perpetrators are not just faceless criminals; they are often highly organized, using technology and psychological manipulation to deceive and defraud.
Related Page: PROTECTING YOURSELF FROM COMMON SCAMS IN 2025
This article delves into the mechanics of grandparent scams, highlights red flags to watch for, and offers actionable steps to protect your loved ones from falling victim to these heartless schemes.
What Are Grandparent Scams?
Grandparent scams are a form of emergency fraud where a scammer impersonates a grandchild or close family member in distress. The scammer typically claims to have been arrested, involved in an accident, or stranded in a foreign country, urgently needing money to resolve the situation. The emotional appeal is potent, and the urgency is manufactured to pressure the grandparent into acting quickly without verifying the story.
These scams are not new, but they have evolved. Fraudsters now employ sophisticated tactics, including voice cloning and caller ID spoofing, to make their impersonations more convincing. This evolution makes it even more critical for families and financial institutions to be vigilant.
Red Flags: How to Spot a Grandparent Scam
Recognizing the signs of a grandparent scam can be challenging, especially when the caller seems to know personal details.
However, certain behaviors are consistent indicators of fraud:
Urgent Requests for Money
The caller insists on immediate action, often claiming they need money for bail, medical expenses, or to avoid legal trouble.
Pressure to Keep It Secret
Scammers frequently ask the grandparent not to tell anyone else, isolating them from support and verification.
Unusual Payment Methods
Requests for money via wire transfer, gift cards, or cryptocurrency are common. These methods are difficult to trace and offer no recourse for recovery.
Inability to Answer Personal Questions
When asked for details only the real grandchild would know, the caller may become defensive or provide vague answers.
Unfamiliar or Spoofed Phone Numbers
Calls may come from numbers that appear local but are actually from out-of-state or international sources.
Protecting Your Loved Ones:
Steps to Take
Prevention is the most effective defense against grandparent scams.
Here are practical steps to safeguard your family:
1. Educate and Communicate
Regularly discuss potential scams with your loved ones. Ensure they know that scammers often pose as family members in distress.
2. Establish a Family Code Word
Agree on a secret word or phrase that only close family members know. If someone claiming to be a relative asks for money, request the code word to verify their identity.
3. Verify Before Acting
If you receive a suspicious call, hang up and call the family member directly using a known and trusted phone number. Do not rely on numbers provided by the caller.
4. Report Suspicious Activity
Encourage reporting of any suspected scams to local authorities, the Federal Trade Commission (FTC), or the Federal Communications Commission (FCC). Reporting helps build awareness and can aid in investigations.
5. Monitor Financial Transactions
Regularly review bank and credit card statements for unauthorized transactions. Early detection can prevent further losses.
6. Seek Professional Advice
If in doubt, consult with a financial advisor or legal professional before sending money or sharing personal information.
How Liberty Savings Bank Can Help
At Liberty Savings Bank, we take protecting our customers seriously, especially seniors who may be targeted by grandparent scams. Our team is trained to spot signs of potential fraud, such as unusual withdrawals or transfers to unfamiliar accounts, and we use safeguards like transaction alerts and verification holds on large transfers to provide an extra layer of security.
We also partner with local organizations to offer educational workshops and resources that help seniors recognize common scams and learn practical ways to protect themselves. By combining vigilant account monitoring with community outreach, Liberty Savings Bank helps keep both your finances and peace of mind safe.
Remain Vigilant: Protect Your Family from Grandparent Scams
Grandparent scams are a growing threat that exploits the trust and love within families. By staying informed, vigilant, and proactive, we can protect our loved ones from falling victim to these deceitful schemes. Remember, when in doubt, verify. Taking a moment to confirm the facts can prevent a lifetime of regret.
If you suspect that you or someone you know has been targeted by a grandparent scam, contact your local law enforcement agency or report the incident to the Federal Trade Commission at www.ftc.gov/complaint.
Together, we can combat this pervasive issue and ensure the safety and security of our seniors.
