What is the Grandparent Scam: Everything You Need to Know

Imagine this: You’re relaxing in your home. Suddenly, you receive a call from a relative saying they're in trouble and need financial help. Your heart starts racing. But here’s the twist: it’s all a scam. You’ve just been targeted with the grandparent scam.

The grandparent scam is where scammers pose as a grandchild in trouble to trick grandparents into sending money. To avoid this, always verify and use a safe code word.

The grandparent scam is a top scam aimed at the elderly. In a recent development, the Justice Department charged 25 people for allegedly targeting the elderly in over 40 states, resulting in losses of more than $21 million.

In a recent development, the FBI has arrested Luis Alfonso Rodriguez for allegedly running a "grandparent scam" and targeting the elderly in Pennsylvania.

Rodriguez is accused of pretending to be a grandchild in urgent need of financial help.

Victims were told to hand over thousands of dollars to unsuspecting rideshare drivers who sent the money to an unidentified person in the Dominican Republic.

Rodriguez faces five counts of receiving stolen money across state lines.

The FBI is now encouraging other victims to come forward, stressing that the scam may have reached beyond western Pennsylvania.

Here’s how the grandparent scam unfold:

• Step 1: The Contact – Pretending to be a relative or someone speaking on their behalf (e.g. police or a lawyer), scammers will contact grandparents.
  
• Step 2: Urgency – Scammers will claim that your grandchild has been in a car crash, jailed, or kidnapped. Plus they’ll pressure you into keeping the situation a secret under false claims like gag orders.
  
• Step 3: Financial Request – Scammers will instruct you to send money, often either for ransom or bail. They’ll also ask you either to hand the cash to a courier or buy gift cards.
  
• Step 4: Disappearance – Once scammers receive your money, they’ll disappear quickly.

The impact of this scam is immediate financial loss, with victims often losing their entire life savings.

Additionally, victims often experience emotional distress, with intense feelings of shame, breach of trust, and anxiety.

One reason this scam works is emotional engineering.

Scammers bank on familiar love. They know that grandparents are naturally protective when it comes to their family, especially to their grandchildren. This makes it easier for scammers to manipulate grandparents.

Another reason is easy access to personal data.

Scammers can dig up names, birthdays, and family ties from social media, people-search sites, or data brokers. With just a few clicks, they can sound like they really know you—making their fake stories even more believable.

With emerging tools like voice cloning and deepfake, it’s easier for scammers to mimic a relative, making their schemes more convincing.

In Ontario, a grandmother received a late-night phone call from someone claiming to be her grandson, Ian.

The fake grandson said he had been arrested and needed $9,000 for bail.

The voice was really convincing that she believed it was truly him. She said she was “anxious to get the money and do anything for her grandchild.”

Her son, Kevin Crawford, stressed scammers may have used AI to clone Ian's voice.

Here are some simple steps to help keep you and your loved ones safe:

• Tip No. 1 - Verify First: If someone calls claiming to be your grandchild in trouble, don’t panic. Hang up and call them back using a number you already know and trust.
  
• Tip No. 2 - Use a Code Word: Create a family “safe word” that only your family knows to verify emergencies. If a caller can’t provide you the code word, they’re likely a scammer, impersonating your loved one.
  
• Tip No. 3 - Don’t Rush: Scammers will do anything to pressure you into making quick decisions. So, slow down, breathe, and ask questions to avoid acting on impulse.
  
• Tip No. 4 - Protect Your Personal Information: Remember that scammers make their claims more convincing by using your personal data. So, protect your data by making your accounts private and opting out from data brokers like Spokeo and MyLife, which often collect and share names, phone numbers, addresses, and relatives.
  
• Tip No. 5 - Stay Informed: Scammers always improve their tactics. So, keep learning by following trusted sources, reading our blog, or simply chatting with friends and family about what’s out there.

To sum up, the grandparent scam is a cruel con that weaponizes familiar love.

And as technology evolves, so do the scammers.

But remember: The more you know, the better you can protect yourself. So, stay informed and take the few proactive steps we shared.

What should I do if my grandparent is scammed?

If your grandparent is a scam victim, contact your local FBI office or quickly file a report online, via the FBI’s Internet Crime Complaint Center. It’s ideal to keep original documentation, including emails and logs of all communication to help the investigation.

How to stop spam calls on my grandparent’s phone?

To stop your grandparents from receiving spam or telemarketing calls, sign them up for the National Do Not Call Registry at 1-888-382-1222. Also, use spam-blocking tools provided by your phone carrier and encourage your grandparents to avoid sharing their number online.