Deception is a key element in fraud, but what allows the deception to seem real is how fraudsters use our emotions against us. Human emotions are very powerful and when certain emotions are triggered, it can cloud our decision making.
A type of fraud that has become very common that highlights the role of emotions in deception is called the “grandparent” or “emergency” scam. The basis of the scam involves deceiving older adults into believing a grandchild is in peril and coercing the grandparents into providing money to the fraudster. By instilling fear in older adults and using a sense of urgency, the fraudster manipulates the target into making a rash decision.
So what does the scam look like?
- A person calls an unsuspecting grandparent and pretends to be a grandchild. They often ask “Do you know who this is?” in order to get the name of the grandchild from the grandparent. They then assume their identity and gain credibility with the grandparent.
- The caller states they are in some sort of trouble like having been in an accident, are in jail or stuck abroad. They will ask for urgent help in the form of money to pay for medical expenses, a fine, bail, or travel home.
- To make it seem real, the caller puts another person on the phone to impersonate a police office, doctor, government official, etc.
- The caller will then ask the grandparent to send them money to a specific account, wire transfer or give a credit card number. A variation of this scam has a person coming to the grandparents house to pick up the money.
There is a variation on this where a supposed grandchild will send a text saying their phone has been broken and they are using a friend’s phone to contact their grandparent. This scam has also evolved over time to add Artificial Intelligence (AI) tools which can make a caller’s voice sound like the real grandchild making the situation even more real for the grandparent. This adds a layer of perceived reality to the situation.
There are few things you can do to help recognize this situation and protect yourself:
- Don’t trust caller ID names and numbers: The Caller ID can easily be manipulated. Do not assume a Caller ID is accurate at any time. When in doubt, its best to hang up and call back on a known or alternate contact number.
- Don’t give them any information: When asked the question “Do you know who this is?” answer “No”. Make the caller give you information rather than the other way around.
- Verify who the caller is: ask questions of the caller that only they can answer. Test them by giving them a fake family situation and see how they respond. A good practice for everyone to follow is have a code word or phrase known only to family members which can be a way to authenticate who the person is.
- Confirm with family members: Hang up the phone and contact the parents or other family members. Tell them of the situation and find out about the grandchild’s plans. Ignore the caller if they tell you to keep it confidential, as that is a pressure tactic.
- Verify with officials: If a person gets on the phone and says they are law enforcement or another official, hang up and call the organization back on a published phone number.
- Ask lots of questions: Ask questions about how the situation occurred. Then ask the same question later in the call. Scammers make things up, so getting a different answer is a red flag.
- Never e-transfer money or give banking or credit card information: If you have any doubts, do not send money or give out sensitive financial information. Make sure you verify with other family members that the situation is real.
- Never pay with gift cards or crypto currency: no reputable organization or government organization will request gift cards or cryptocurrency for payments.
If you feel that you are being targeted by this scam, here are a few steps to take:
- Do not feel pressured to react immediately
- Contact family members immediately to explain the situation
- Contact your local police to report the fraud attempt
- Report this to the Canadian Anti-Fraud Centre
or call them at 1 888 495-8501
To learn more about how emotions can be used by fraudsters see Emotions – the cornerstone of fraud. Want to continue learning about fraud and how you can prevent it; we encourage you to check out:
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