Emergency or
"Grandparent" Scam
Though
the “Emergency Scam” (or sometimes referred to as the “Grandparent
Scam”) has been around for years, the RCMP led Canadian Anti-Fraud
Centre (PhoneBusters) warns the public to be on after noting
a marked increase in the number of complaints in the last
two months.
Traditionally
operating as a telemarketing scam throughout North America,
fraudsters contact potential victims while posing as a family
member or friend in urgent need of cash. Often the scenario
involves an accident or arrest while travelling abroad, with
a request that cash be sent through a money transfer company,
such as Western Union or Money Gram.
There
are commonly two methods used in an attempt to fulfill this
scam.
1)
In the typical scenario, a grandparent receives a phone call
from con-artist claiming to be one of his or hers grandchildren.
The caller goes on to say that they are in some kind of trouble,
usually a car accident, returning from a foreign country,
or even bail money and need money immediately.
A
typical call can go something like this:
Con-artist:
Hi, Grandma/Grandpa
Victim:
Hi.
Con-artist:
Do you know who this is?
Victim:
John?
Con-artist:
Yeah.
Victims
don't verify the story until after the money has been sent
as the caller specifically asks that they do not want other
relatives to know what has happened by asking “Can you please
help me? I'm in jail (or in the hospital / or in some
type of financial need). But don't tell Dad. He would
kill me if he found out, please sent the money ASAP. I'm scared"
Wanting
to help their grandchild, the victim sends money by a money
transfer company such as Money Gram or Western Union.
Variations
on the scam exist such as an old neighbor, a friend of the
family etc. but predominantly the emergency scam is directed
toward the Grandparents.
2)
In a recent variation of this scam, compromised contact lists
from hijacked email accounts are used to send the potential
victim an “urgent” email request for money from a friend or
relative with whom they have a correspondence. Common themes
continue to be hospitalization or imprisonment while away
from home. The friend is unaware that their account
has been used to send out these requests to everyone on their
contact list.
Last
year (2008) there were 130 failed attempts reported to the
CAFC and 69 successful pleas – amounting to $157,452.16.
By
the end of October 2009, there were reported 278 failed attempts
and 88 successful pleas – amounting to $317,732.63.
The
CAFC estimates that the reports reflect only 5% of the actual
number of cases.
December
18, 2009 - OPP Warns Public About Scam Targeting Grandparents
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