The Grandparent Scam

Targeting SeniorsA new type of scam has recently popped up that specifically targets seniors. It’s called the “Grandparent Scam” and it hits seniors where many are potentially most vulnerable: their love for their grandchildren

Impersonating GrandkidsFraudsters call seniors on the phone impersonating one of their grandchildren and frantically claiming to be in some kind of trouble — usually a car accident, arrest, lost wallet or robbery, often in a foreign country. Then they ask their supposed grandparents to send them money, usually via a wire transfer, to help them get out of their bind.

Don’t Tell My Parents!

Professional fraudsters are able to disguise their voices, usually claiming that their nose or mouth is injured if the grandparent asks why their voice sounds funny. And the fraudsters beg them not to tell their parents in order to avoid punishment or embarrassment

Follow-up Calls

Follow-up calls are also sometimes made by other fraudsters posing as attorneys, bail bondsmen or doctors to help make everything sound even more legitimate. Some fraudsters are even able to profile victims by searching social networking sites to learn little details that only a family member would know.

Don’t Wire Money Without Confirmation

Major money transfer service providers Western Union and MoneyGram are working with law enforcement officials to try to prevent this scam. For example, transfer forms specifically state that users should not wire money to grandchildren or any other family members for unconfirmed emergenc ies.

Be Alert and AwareIt’s easy to get emotional if you receive a call like this, but use some healthy skepticism and suspicion. Check all the facts..

Family PasswordCreate a secret code phrase to be used by all family members in the event of a true emergency.

Make sure that everyone knows to use this phrase if they have to call in an emergency.

Be Careful About What You Share

Urge your kids and grandkids to be careful about how much personal information they share on social media sites, such as their vacation plans and whereabouts. This is a prime source of useful information for fraudsters.

Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. (DLA). This material does not constitute an offer or recommendation to buy or sell securities and should not be consideringin connection with the purchase or sale of securities.

Member FINRA & SIPC.

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