The ‘grandparent’ or ‘emergency’ scam is back on the rise according to calls into your local BBB as well as reports from other BBBs across the country. Typically, the scam begins with a phone call from a con artist posing as a grandchild. The voice is distressed, usually explaining an arrest or car accident in Canada, and asking that his or her parents not be informed. The fraudster then requests money to be wired through a transfer company, often Western Union or MoneyGram. Phone numbers during these conversations are often listed as “unavailable.”
A Wisconsin couple in their 70s recently wired over $19,000 to a scammer thinking they were helping their grandson, who they were told was involved in a car accident in Montreal, Quebec, Canada. They were first contacted by someone pretending to be a lawyer for their grandson and then by someone pretending be the grandson himself.
Soon after the money was gone, the couple discovered that their grandson had never left the state of Wisconsin.
“This type of scam is particularly appalling because it victimizes grandparents who want nothing but to protect their grandkids,” said Dale Mingilton, President and CEO of the BBB serving Denver/Boulder.
According to the Canadian Anti-Fraud Call Center (CAFC), there were 278 reports of failed and 88 reports of successful Grandparent Scams from January through October in 2009, totaling $317,732.63 in fraud. The CAFC estimates, however, that these reports reflect only 5% of the actual number of cases.
The BBB advises that emergency phone calls from loved ones be confirmed by additional family members before any financial transactions are made. Consumers should also recognize any request to send money to a foreign country through a wire transfer company, such as Western Union or MoneyGram, as an immediate sign that the request may be a scam. Funds sent via wire transfer are difficult to track once received by scammers, and are usually not recoverable by law enforcement or banking officials.
For anyone victimized by this type of “Emergency Scam,” the BBB recommends reporting the incident immediately to local police departments and Attorneys General offices. In the case of a request to wire money to Canada, the fraud should be reported to the CAFC by calling PhoneBusters toll-free hotline (1-888-495-8501) or filing a complaint on their website (www.phonebusters.com).
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