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Financial
Self Defense
A
New Kind of Grandparent Scam
For years, con artists have preyed on the elderly, claiming to be their grandchildren and in trouble with desperate need for money. This is the traditional grandparent scam and it dates back to as long as grandparents have had home phones. Scammers know that grandma will do anything to help out, and they also know members of "the greatest generation" are excellent marks for phone scams. In the traditional version of this scam, someone calls and tells the grandparent their grandchild has been jailed for a minor offense in a foreign country or has had a medical emergency befall them. Of course, other situations that would present an immediate need but be very hard to quickly verify are also used, so there is no one sure tell based upon circumstance.
In
reality, the grandchild is not under arrest, in the hospital or in trouble at
all. At the very moment the scammer says the grandchild is in the middle of
an emergency, he or she is probably just staring at a cellphone screen,
possibly while they're in class, oblivious to the whole situation.
A new
version of the scam has been making the rounds this summer and it has a 21st
century hook. The FTC, the BBB and various news organizations are reporting
that scammers are now claiming to be debt collectors and getting older
Americans to fork over credit card information or wire money to the scammers.
Sometimes the collectors claim to be after young people, threatening
that if grandma doesn't come through with the cash, the grandchild will be
arrested, have their license revoked or lose their job. Other times, the
scammers claim the grandparents are on the hook for the debt and use their
fear of losing their credit rating to finagle some easy money out of a
frightened victim.
The
debt collection angle is new to the grandmother scam, but hardly a new scam
in itself. Con artists have been calling with fraudulent debts and
fabricated threats for years, often claiming a long-forgotten payday loan or
other non-traditional debt has been turned over to the police. But as people
have gotten wise to phony debt collection scams, they've combined the routine
with grandparent scams to make a new scenario that feels very real.
With
student loans and credit card debt through the roof, it's easy to believe a
loved one could have all sorts of debt we don't know about. With the pressure
on, it's difficult to find out if it's true. But, if you didn't co-sign
a loan, you can't be held responsible for paying it, no matter what someone
tells you over the phone. In fact, it's illegal for a debt collector to
tell you if someone else has a debt at all. If you've ever called a
credit card company on behalf of your spouse, you've probably experienced the
privacy laws in action, because the credit card company won't even talk to
you.
If you
feel pressured to make a payment or provide personal information over the
phone, try to get off the line as quickly as possible. Offer to call
them back, if necessary. The more they try to keep you on the phone,
the more likely it is that they're fraudsters who are after a quick buck.
If you think you might be a potential victim of such a scam, let the
FTC know immediately, at www.ftccomplaintassistant.gov/.
Then,
let Pen Air know so we can make sure your accounts are safe, issue
new information if necessary, and prevent any fraudulent charges. We
can also show you how to go through your credit report and find out if you
have any debts you don't know about.
When
someone pressures you on the phone, it's always a good idea to take a break
and figure out what's really going on.
Sources:
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Wednesday, September 2, 2015
Financial Self Defense - A New Kind of Grandparent Scam
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