How to Avoid the "Grandparent Scam"

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Grandparent scams prey on senior investors by taking advantage of their love and concern for their grandchildren. Scammers typically pose as a grandchild (or other close relative) and use the false identity to ask for money.

Fear and urgency drive most of these scams. The false relative creates an emergency situation to push for immediate funds. The scammer hopes that the potential victim doesn’t ask too many questions, and just sends the money.

Grandparent scams have been around for years, but they’ve become more sophisticated through online chats, social media, and artificial intelligence (AI). Scam artists can use social profiles and AI to spoof relatives and quickly uncover personal information about their targets.

While the attacks are more advanced, you can still protect yourself and your money. The first step is to understand the different types of grandparent scams.

Common scam forms

The Grandchild in Trouble

The “grandchild in trouble” scam is one of the most common forms. The scammer poses as the victim’s grandchild or close relative, claiming to be in a bad situation — like being under arrest, in a car accident, or being mugged. They may ask the grandparent to send money as soon as possible, or purchase several gift cards and give them the redeeming codes.

• The message may come from a random phone number, a similar number (with the same area code), or from a social media profile. Scammers might create fake profiles and use photos of the grandchild or relative to convey legitimacy.
• Crucially, the fake grandchild begs that the victim not tell anyone else about the situation.

The Fake Accident

In this scam form, the scammer inform the victim of an accident involving their grandchild or relative. They may claim to be a police officer, lawyer, or doctor managing the situation.

Sometimes scammers may first pretend to be the phony grandchild to further spin the fake scenario.

Kidnapping and Ransom

In this scary scenario form, the scammer claims that the victim’s grandchild has been kidnapped and demands a ransom. The scammer may even contact the actual grandchild first and try to cut off their phone service, preventing the grandparent from checking the phony story.

Watch for warning signs

Here are some clear warnings that indicate a grandparent scam:

• You’re asked not to tell other relatives about the incident, either from perceived embarrassment or fear.
• You’re asked to send the money through a wire transfer service, such as MoneyGram or Western Union. Wire transfers allow scammers to retrieve money anywhere using a reference number and phony ID.
• You’re asked to send the money through a digital payments network, such as PayPal, Vemno, or Zelle.
• You’re asked to give the money to an unfamiliar courier at your front door.
• You’re asked to purchase numerous gift cards and provide the redeeming codes.

What to do if you’re a victim

Time is the biggest factor in resolving any financial fraud. The longer it takes to spot the scam, the less likely you’ll be able to recover lost funds.

• If you already sent money, digitally or by wire, contact the transfer service or payments network immediately to report the scam. If the money hasn’t been received or collected yet, you might be able to reclaim it. If it’s been collected, it’s likely gone forever.
• Report the scam to your local authorities and the Massachusetts Office of Consumer Affairs and Business Regulation.
• File a complaint with the FBI's Internet Crime Complaint Center (IC3). The IC3 forwards complaints to the appropriate agencies, and analyzes data to link complaints and identify culprits.

How to avoid being scammed

• Challenge the claim. Most grandparent scams fall apart when challenged.
• Ask questions that only the real grandchild would know. Confirm the last time they saw you, or a personal nickname that they use for you.
• Don’t answer any of the scammer’s questions. Every piece of information that you provide can be used against you.
• Resist any pressure to act quickly.
• Tell a caller that you’ll call them back at a known number, not a given number.
• Contact your grandchild or relative through a different method to determine the claim’s legitimacy and confirm their condition.
• Develop a secret code or password with family members that can be used to verify a true emergency.
• Don’t share too much personal information, such as vacation plans, on social media sites.
• Never send money based on a request made over the phone, in a text message, in an e-mail, or on social media. Once you send it, you likely won’t get it back.