Beware the Grandparent Scam

It's a sad fact of life, but there are people out there lying in the weeds, hoping to find an unwary victim they can take advantage of. All of us need to be on guard, and a big part of being on guard is being educated and aware.

This leads us to a brief discussion of an old but common ploy known as the Grandparent Scam. It works like this. You get a call late at night from your grandson or granddaughter. They sound different, but it's late and it might be a bad phone connection, so you ignore the sound of their voice and focus instead on the words they're saying. They tell you they are in real trouble and need your help. In this case, help equals money.

The reason for the sudden late-night need for cash is immaterial. The scammer has free time. They can find the names and ages of your grandchildren, so they can put together a scenario that is plausible enough to get your worried. You love your grandchildren, and you want to keep them safe. So you listen, assuming all the while that you're taking to your grandchild, not a thief who is trying to empty your bank account.

They tell you were to wire them a quantity of cash. They tell you how embarrassed they are and plead with you not to call their parents. “Can't you please help me?” sounds so heartbreaking coming through your phone at 1:00 AM.

So you get up and you wire the money, as you've been asked to do. Unfortunately, the money didn't go to your grandchild, who is more than likely still at home, safe in bed – it went to a scammer who just hit pay dirt.

How common is the Grandparent Scam? In 2010 alone the Federal Trade Commission received 60,000 complaints. On average the victims of this scam lost, $3,500.

So stay on your toes. If you get a call from a someone who identifies themselves as your grandchild, ask questions. Where are they? Can I call you back? Why are you at a different number than your usual cell phone number?

The longer the person on the other end of the phone talks, the more likely it is they'll make a mistake that clues you in to the fact that they are not your grandchild. Don't be afraid to call mom and dad, either. It might embarrass your grandchild if they are truly in trouble. But it might keep you from being the victim of a scam, too. In the big scheme of things, it's at least possible that suffering a little embarrassment might be the better of the two options.