10.22.2024

Understanding and Protecting Against Grandparent Scams

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Grandparent scams target the elderly by exploiting their concern for family members. Scammers pose as grandchildren or relatives in distress, creating urgency that leads to quick actions without verification. These scams can cause significant emotional and financial damage. Knowing how they work and how to protect yourself is essential. ​​​​​​
 

How Grandparents Scams Work

The typical grandparent scam starts with an unexpected call. The scammer poses as a grandchild or other family member and claims to be in some kind of emergency. Common scenarios include:
  • Car Accidents: They claim they were involved in an accident and need money for medical bills or car repairs.
  • Arrests: They claim to have been arrested and need bail money immediately.
  • Travel Mishaps: They might pretend to be stranded in a foreign country and need money to get home.
They'll often say things like, "Grandma, it's me," or "Grandpa, I'm in trouble!" Scammers often use details found online, like grandchild's name or other personal details. Sometimes, they get this information from social media, where family members may post about vacations, accidents, or other life events.

Once the scammer has convinced the grandparent, they request money, typically through wire transfer or prepaid gift cards - methods that are hard to trace or recover. ​​​​​​
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Red Flags to Watch For

It's easy to be caught off guard in an emotional moment, but there are warning signs that can help you recognize a grandparent scam:
  1. Urgency and Secrecy: Scammers create a sense of urgency, pushing victims to act quickly without thinking things through. They also may ask you to keep the matter secret to avoid "getting in trouble."
  2. Unusual Payment Methods: Requests for money via wire transfers, prepaid gift cards, or cryptocurrencies are common in scams because they are difficult to trace and recover.
  3. Unexpected Requests: If you receive an unexpected call asking for money, especially from a relative who rarely asks for financial help, take it as a warning sign.
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How to Protect Yourself and Loved Ones

  1. Verify the Caller: Ask personal questions only your real grandchild would know. Hang up and call them on a familiar number to confirm.
  2. Stay Calm: Scammers manipulate emotions. Take time to verify facts, even if it feels urgent.
  3. Limit Information Online: Keep personal details off social media to prevent scammers from using them.
  4. Discuss with Family: Talk to your elderly relatives about grandparent scams so they're prepared.
  5. Avoid Strange Payment Methods: Legitimate people or companies rarely ask for wire transfers or prepaid cards. Always verify before sending money.
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If You're Targeted

If you think you've been targeted by a grandparent scam, take the following steps:
  1. Stop Communication: Immediately hang up the phone or stop responding to emails or texts.
  2. Report the Incident: Notify the Federal Trade Commission (FTC) or local authorities to help stop the scam and warn others.
  3. Check Your Accounts: If you've shared financial information or sent money, contact your financial institution or credit card company right away to stop transactions and secure your accounts.
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Conclusion

Grandparent scams prey on the love and trust within families, making them especially dangerous. By recognizing the tactics scammers use and taking steps to verify any claims before acting, you can protect yourself and your loved ones from this type of fraud. Staying informed and sharing knowledge with family members can go a long way in preventing emotional and financial harm. Always remember: if something feels off, take the time to verify the facts before sending money or sharing personal information.

At Michigan First, our top priority is protecting you and your money. We make substantial investments in resources to maintain the confidentiality and security of your personal information. Use above the information to help keep yourself and loved ones protected against fraud but know that fraud schemes are surfacing every day. Stay up to date and informed by visiting MichiganFirst.com/Fraud and monitoring trends on the Federal Trade Commission website.

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