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Quick Overview

• Elder Fraud: The Crime of the 21st Century

• NY Man Charged in Connection with Grandparent Scam …

• How the Grandparent Scam Works

  • Tactics Used by Scammers

  • Emotional Manipulation in Scams

  • How to Spot the Grandparent Scam

    • Common Red Flags - Grandparent Scam

  • How to Prevent Falling Victim to the Grandparent S …

  • How to Report the Grandparent Scam

Elder Fraud: The Crime of the 21st Century

I am really excited to see the FBI, media, and other government agencies push to get the word out about the epidemic of fraud and scams that target seniors. This week alone, scams have been covered by the Wall Street Journal and the New York Times.

In digging through FBI announcements, I found the following quotes that speak to the magnitude and devastation that the FBI is witnessing:

“Elder Fraud is labelled as the crime of the 21st century because we are seeing elderly individuals retiring with significant assets making them the most attractive target for criminal elements seeking to steal money from trusting individuals,” said Special Agent in Charge John Morales of the FBI El Paso Field Office.

Education and awareness is what it’s going to take in order to slow down the flood of new scams popping up every week.

This week, we’re diving into the Grandparent scam and sharing a story of a New York criminal who used the grandparent scam to steal tens of thousands from seniors. Like I mentioned last week, it’s not only international crime organizations involved in scams, it’s also people in our communities.

Stay safe out there,

NY Man Charged in Connection with Grandparent Scam Targeting Seniors in New Jersey & New York

Imagine getting a desperate call from your 'grandchild' asking for money—claiming they were involved in an accident, arrested or in trouble. Imagine speaking with someone claiming to be a police officer or nurse telling you that your grandchild is in jail or the hospital and in desperate need of money.

The Grandparent scam has been around for a long time because it works so well. Now, with the capabilities of AI and technology that can imitate faces and voices, the Grandparent scam is only going to get bigger.

These scams really hit home because they play on the emotional ties we have with our family. When scammers pull personal info off social media, it makes the victim act without thinking twice. Just like those phishing emails, these scams fall under what is commonly referred to as “social engineering.”

Scammers know that grandparents will jump in to help a family member in a bind without thinking it through. They always paint a pretty grim picture, making it seem like the grandkid is in serious trouble. This kind of storytelling is meant to tug at the heartstrings and makes it tough for the victim to think straight or double-check anything.

NY Man Charged

Last month, a federal grand jury charged Victor Anthony Valdez, 39, of the Bronx, for having acted as a courier for a Dominican Republic-based “grandparent scam” that targeted elderly Americans.

According to the indictment, the scam operated from call centers in the Dominican Republic. Criminals made phone calls to elderly American victims claiming the victim’s grandchild has been arrested and was in need of cash for bail or other expenses. Once convinced, victims were instructed to provide cash to couriers who went to the victims’ homes to pick up the money.

Valdez is alleged to have attempted to retrieve tens of thousands of dollars from victims at their homes in New York and New Jersey and is facing a maximum penalty of 20 years in prison and a maximum fine of $250,000.

“The alleged perpetrators in these scams – including this defendant – target our vulnerable senior population,” said U.S. Attorney Philip R. Sellinger.

“They count on the grandparents’ love and devotion to their families in order to convince them to put up money.”

How the Grandparent Scam Works

Tactics Used by Scammers

Scammers employ a variety of tactics to make the grandparent scam believable. It starts well before the initial phone call. They will likely research your social media channels for specific details about your family. New AI technology is allowing criminals to imitate the voices (and soon faces) of your loved ones.

Initial contact starts by placing a frantic phone call or sending an urgent email, posing as a grandchild in distress. They may claim to be in trouble, such as being arrested or stranded, and urgently need money.

Another common tactic involves impersonating a lawyer, police officer, or medical professional, further emphasizing the urgency and seriousness of the situation. These criminals often pressure the senior to act quickly, discouraging them from verifying the story by saying things like, “Please don’t tell mom and dad.” By creating a sense of panic, scammers aim to cloud the victim’s judgment, making them more likely to send money without questioning the legitimacy of the request.

Emotional Manipulation in Scams

Emotional manipulation is a key strategy used in grandparent scams. Scammers exploit the natural concern and love that grandparents have for their grandchildren. They often create high-pressure situations designed to induce panic and urgency.

For example, a scammer might call late at night, knowing the odd hour will catch the victim off guard. They use emotional triggers such as fear, worry, and guilt to control the conversation. Statements like, “I’m scared, please help me,” or “If you don’t act now, it will be too late,” are common.

This manipulation not only clouds the victim’s judgment but also makes them less likely to seek advice or verification. Recognizing these tactics can help them take a step back, think critically, and verify the information before taking any action.

How to Spot the Grandparent Scam

Common Red Flags - Grandparent Scam

Recognizing common red flags can help protect seniors from scams.

• Unexpected Calls from Unknown Numbers: One major warning sign is receiving an unexpected call or email from a supposed grandchild in distress, especially if the story involves urgent financial needs.

• Requests for Secrecy: Scammers often say, “Please don’t tell mom and dad.” The goal here is to to ensure you don’t call anyone to verify.

• Urgency: Scammers will also stress urgency, pressuring victims to act quickly so they don’t have time think about what is going on.

• Weird Payment Options and Terms: Requests for specific forms of payment, like wire transfers, gift cards, or cryptocurrency, are suspicious.

• Poor Grammar: Unusual language or poor grammar in communications can be a sign of a scam.

By being aware of these red flags, seniors and their families can take a moment to pause, verify the situation, and prevent falling victim to these fraudulent activities targeting seniors.

How to Prevent Falling Victim to the Grandparent Scam

Awareness is the first line of defense against scammers. You need to understand that the scammer has a series of tricks to pressure you into falling for the scam.

To protect yourself and your family from scams, it’s crucial to implement proactive measures.

• Open Communication: Encourage open communication within the family. Ensure that everyone feels comfortable discussing any suspicious calls or emails they receive.

• Code Word or Phrase: Establish a verification plan. Agree on a code word or phrase that only family members would know to confirm the caller’s identity.

• Take a Moment: Urgency is key to getting victims to fall for the scam. It’s important to take a moment. Ask the caller for their phone number and tell them you will call them back once you figure out if you have the money.

• Verify: Use the cord word or phrase. In addition, contact the family member directly using their known phone number.

• Specify Payment Terms: Never send money or provide personal information without verifying the legitimacy of the request. Police stations, hospitals, and other organizations will not ask for gift cards, cryptocurrency, or send someone to your home to pick up cash.

• Screen Calls: Always approach unexpected communications with caution. Block unknown callers and use caller ID to screen calls.

• Go Private: Scammers will typically research victims on Facebook, Instagram and other social channels. Set your profile to private so criminals can’t dig into your personal life.

How to Report the Grandparent Scam

Legal Measures

Legal measures are in place to combat elder fraud and protect seniors from scams. Laws such as the Elder Abuse Prevention and Prosecution Act (EAPPA) enhance penalties for those who exploit seniors and provide additional resources for law enforcement to investigate and prosecute these crimes.

Reporting the Scam

The Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB) offer resources and support for victims of elder scams. Reporting incidents is crucial to understand the magnitude of scams and to help others from falling victim. Here’s where to report a scam:

• Go to your local law enforcement to file a report

• Report the scam and details to FTC

• If the scam took place online, please report it to the FBI’s Internet Crime Complaint Center (IC3). Otherwise, you can report it to your local FBI Office.

• Report the crime to your bank or financial institution if money was sent to the scammer.