Grandparent scams are on the rise in Canada. Here’s how you can protect your family
Nearly $10 million was lost to grandparent scams in Canada last year, but figure likely higher as embarrassment prevents many from filing reports
The scammers will be well-rehearsed and likely have personal information collected from social media, but knowledge of the scam is the first step in avoiding it. Speak with family members that may be at risk and explain how the scam works.
The phone was then passed to another individual, posing as a lawyer, who made arrangements to pick up the money. The intended victim reported the phone call to the police after hanging up the phone. The teen was later charged with fraud over $5,000, possession of property obtained by crime and conspiracy to commit an indictable offence.
The incident is the latest in a growing trend of grandparent scams, intended to bilk money from seniors as scammers pose as relatives in need of emergency funds. According to the Canadian Anti-Fraud Centre (CAFC), fraud reports increased nearly 40 per cent from 2021 to 2022, and nearly $10 million was lost to grandparent and emergency scams. Here’s how you can protect yourself and your family.
How does the grandparent scam work?
In most instances, the scammers will have scrubbed identifying details of the family from social media to appear authentic. Scammers contact victims via phone, email or text message. They will also reiterate that the scam is, in fact, not a scam. Once they’ve established the story, they will then hand the phone to another person posing as a lawyer or police officer or similar to arrange details to pick up the money or have it sent by transfer.
Citing an increase in the scam tactic, the Winnipeg Police issued a press release last year noting that the police and courts will never send someone to a residential address to collect money or advise an individual to lie to their banks to obtain money.
“These scammers will pressure people to act quickly before they have time to consider what they are doing or agreeing to. Always talk to a trusted person before providing personal information or funds, especially if it is an unsolicited call,” they add.
Scammers will call victims, generally late at night, posing as a grandchild or other relative and claim to need immediate financial assistance. The callers will typically sound very distressed, which helps mask their voice, and claim they’ve been in an accident or have been arrested and require bail money.
In most instances, the scammers will have scrubbed identifying details of the family from social media to appear authentic. Scammers contact victims via phone, email or text message. They will also reiterate that the scam is, in fact, not a scam. Once they’ve established the story, they will then hand the phone to another person posing as a lawyer or police officer or similar to arrange details to pick up the money or have it sent by transfer.
Citing an increase in the scam tactic, the Winnipeg Police issued a press release last year noting that the police and courts will never send someone to a residential address to collect money or advise an individual to lie to their banks to obtain money.
“These scammers will pressure people to act quickly before they have time to consider what they are doing or agreeing to. Always talk to a trusted person before providing personal information or funds, especially if it is an unsolicited call,” they add.
How you can avoid being defrauded
The scammers will be well-rehearsed and likely have personal information collected from social media, but knowledge of the scam is the first step in avoiding it. Speak with family members that may be at risk and explain how the scam works. Advise them never to answer calls from numbers they do not recognize and remind them that caller IDs can be manipulated.
If they do pick up the phone, it’s important they never offer personal or banking information and never send a wire or e-transfer. Do not offer to pay using a gift card, no government agency or legitimate business will ever insist on this payment method. The best thing to do is hang up and call a trusted family member to discuss the call.
“If you do answer one of these calls, the scammer is going to use every method of manipulation possible to get you to send money. Don’t try to have a logical conversation with the scammer because they’re trained to escalate emotions and pressure to make you act fast and think illogically,” notes Scotiabank.
Signs that a family member is being scammed
Despite the rise in fraud attempts in Canada, CAFC notes that only a fraction of scams are reported due to embarrassment, meaning the problem is likely worse than believed. Some family members may keep the fact they’ve been scammed secretive for this reason.
If a senior family member is suddenly acting cagey about their financial records, or requesting to visit the bank right away, it may be a sign they’ve been scammed. Other signs are more obvious, like large amounts of cash missing. If you discover a family member has been defrauded, report it to the financial institution, the police and the Canadian Anti-Fraud Centre.
It’s also important to talk through the scam with your relative, to make sure they understand what transpired. Fraudsters are likely to repeatedly target victims that have previously fallen for scams. Remind them to monitor the privacy settings on their social media accounts so that only people they know can view their accounts.
Source: NationalPost.com
Article originally appeared at: https://nationalpost.com/news/grandparent-scams-are-on-the-rise-in-canada-heres-how-you-can-protect-your-family
Resource: https://nationalpost.com/news/grandparent-scams-are-on-the-rise-in-canada-heres-how-you-can-protect-your-family
Learn more about the grandparent scam here: https://eapon.ca/the-grandparent-scam/
Watch the Webinars recordings on how to identify and protect yourself from the scams:
Grandparent Scam: Education is your best defense
