Preventing Scams

It is estimated senior citizens are robbed of roughly $3 billion a year in financial scams. The “grandparent scam” or “grandchild in need scam” is on the rise. The scam begins with something most grandparents don't get enough of - a phone call from a grandchild - or so the caller says. It almost always ends with a desperate plea for money. Scammers call senior citizens, impersonating a grandchild in distress, begging for cash. According to a convicted scammer when asked how a typical call would go, he said, "You just say, 'Hey, how are you, hi grandma, hi grandpa... I'm in a little bit of trouble right now. If I tell you, just keep it between us, I'm on vacation, I got into a little accident, and I was arrested for a DUI (or some other type of trouble).' You tell them, ‘Things got out of control, and I need you to send me the money’." It triggers something emotional, it causes you to act. It works because grandparents want to help. "I was upset, sort of frantic and, of course, sort of shocked," according to one grandmother who was scammed. Even when she said the voice on the other end didn’t sound like her grandchild, the scammer had an answer for that, “I have a cold.” The grandmother said, "I felt there was a desperation and an urgency in his voice, partly because he said 'love you'." "I just wanted him to be home with his family," she added. "That's all I wanted." So she immediately sent almost $18,000 to a bank account, thinking it was going to a lawyer. But her grandson wasn't in jail. Her money was gone. The grandmother said, "You are blinded by emotion. Totally blinded. You don't think rationally when this happens. You know, your family comes first." According to the scammed grandmother, “It's not simply the loss of the money. We feel stupid, we feel gullible, and we have nightmares about it.” It's hard to tell how many senior citizens have been scammed like this, because there is no national database to track the grandparent scam and many grandparents are too embarrassed to report it to police. It's also very hard to catch these criminals, especially when they're operating outside the U.S. Also, their tactics can be highly sophisticated, such as disguising their phone numbers with a familiar number. To guard against this kind of act, people should ask a question that only your grandchild would know, such as the name of your pet, and confide in someone -- even though the person on the other end of the line will beg you to keep it a secret. And report it. To file a complaint with The Federal Trade Commission, go to www.ftc.gov where you can fill out an online complaint form. You can also call the FTC at 1-877-382-4357 to report a complaint. Another scam designed to separate the trusting individual with their money is aggressive and threatening phone calls by criminals impersonating IRS agents. Scammers make unsolicited calls claiming to be IRS officials. They demand that the victim pay a bogus tax bill. They con the victim into sending cash, usually through a prepaid debit card or wire transfer. They may also leave “urgent” callback requests through phone robo-calls or via phishing email. Many phone scams use threats to intimidate and bully a victim into paying. They may even threaten to arrest, deport or revoke the license of their victim if they don’t get the money. Some schemes may even say you are entitled to a huge refund. They all add up to trouble. Scammers often alter the caller ID numbers to make it look like the IRS or another agency is calling. The callers use IRS titles and fake badge numbers to appear legitimate. They may use the victim’s name, address and other personal information to make the call sound official. Scam artists are sophisticated and often prey on trusting victims. Be very careful and do not give out information to anybody who initiates a call. I hope this information makes you pause and not become a victim of a scam.