4 tips to protect yourself from the grandparent scam
The grandparent scam is a common fraud tactic where a scammer pretends to be a member of your family in an attempt to steal your money. These days, some scammers are even using artificial intelligence (AI) to make their schemes harder to detect. Behind their urgent calls and pressure tactics is the same strategy: exploiting a family member’s trust to steal money without raising suspicion. Read on to learn how to spot this scam and protect yourself with a few simple, practical tips.
The grandparent scam and AI: What you need to know
Scammers are using advanced technologies to refine their strategies. For example, they’re using AI make their calls more convincing by impersonating their victims’ loved ones, like their grandchildren.
The calls sound authentic, so scammers are able to get their victims to let down their guard.
Follow the tips below to spot this scam and protect yourself.
4 tips for avoiding the grandparent scam
1. Be wary of urgent and unexpected requests, especially when someone’s asking you to transfer money to a loved one in distress. The person on the phone may also ask you not to tell anyone about the call. If the call is urgent and needs to be kept secret, it’s a red flag.
2. Talk to your family and come up with a codeword. If someone who says they’re a family member asks you for money over the phone, ask them for the secret code. You can also ask them personal questions that only your loved one could answer. That way, you can make sure the person you’re talking to is actually who they say they are.
3. If you’re unsure, hang up and check with a member of your family. Even if the caller tries to convince you to stay on the line and not talk to anyone else, it’s always best reach out to someone you trust to double check.
4. Be very careful when someone contacts you, unsolicited, asking you to act fast. Don’t trust your caller ID, don’t give them your address if you haven’t confirmed their identity, and never let someone you don’t know come to your house to get money.
What does the grandparent scam look like?
- Hi, Grandma! It’s me.
- Will? Alex?
- Yes, it’s Alex. Listen, Grandma, I’m in a little bit of trouble ...
This so-called Alex proceeds to tell his “Grandma” that he just had an accident and injured some people. He says he’s being held at the police station and needs $4,000 for bail. He asks her to lend him the money right away by making a transfer at a currency exchange office. He promises to pay her back as soon as he gets out of the situation.
This actually happened to Elsie
This is a true story that happened to Elsie*, an 81-year-old woman who lives in Montmagny. Thanks to the vigilant staff at her caisse, she didn’t fall for the scam. But it was close.
Elsie went to her caisse, and the staff noticed that she was nervous and withdrawing an unusual amount.
Elsie’s advisor brought her to her office to make her feel more comfortable, and Elsie told her what happened. The advisor called Elsie’s son and grandson, who was safe and sound at home, to determine that she was indeed the target of a scam.
This strategy can take all sorts of different forms. For example, a second scammer might pose as the grandchild’s lawyer and ask the grandparent to send them the money.
Reporting matters!
If you think you may have been targeted by a scammer, report it to the police and to the Canadian Anti-Fraud Centre at 1-888-495-8501. Also notify your financial institution about the incident.
To learn more about how you can protect yourself and detect and report different kinds of fraud, check out our Security webpage.
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* We’ve used a fictional name to protect the member’s identity.