West Bank offices will be closed on Monday, January 20 in observance of Martin Luther King, Jr. Day.

West Bank offices will be closed on Monday, January 20 in observance of Martin Luther King, Jr. Day.

West Bank offices will be closed on Monday, January 20 in observance of Martin Luther King, Jr. Day.

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Elderly Financial Exploitation Fraud Spotlight – “Grandparent” Scam

Older woman puts her hand on her head in a moment of concern while talking on the phone

Elderly Financial Exploitation (EFE) is a growing form of fraud that targets older adults. Criminals seek to gain the elderly’s trust in order to convince them into sending money. In conjunction with the growing development of artificial intelligence resources to make scams seem more realistic, elderly fraud continues to rise. In 2022, the FBI reported that EFE is linked to more than $3 billion of reported financial losses annually, with victims averaging a loss of $35,000.

Criminals implement many tactics and stories to convince the elderly population into sending over money. They may impersonate a government official, pretend to be a romantic interest, or pose as a customer support representative as an initial way to gain the individual’s trust. One tactic in particular that is seeing a resurgence is the “grandparent” scam.

What is the “Grandparent” Scam?

When committing the “grandparent” scam, the perpetrator impersonates a grandchild over the phone, usually claiming to have been in an accident, hospitalized, or arrested in a foreign country. The “grandchild” attempts to get the grandparent to send money to “help” them out of their situation, usually encouraging the grandparent to act quickly and secretly. Once the grandparent sends the money, the criminal can then transfer the funds abroad, making the transaction nearly impossible to trace.

How do criminals commit the “Grandparent” scam?

How do these criminals gain information about an individual’s grandchild in order to gain the grandparent’s trust? Most information used in these scams is found on social media. With the vast amount of personal information posted to sites like Facebook and Instagram, scammers can paint a general, and maybe even very specific, picture of the individual they are aiming to impersonate.

How to avoid losing money in “Grandparent” scams

As a rule of thumb, whenever anyone asks for money over the phone, it is a good practice to confirm this request through a trusted form of communication with the real individual. If you receive a call from someone claiming to be your granddaughter in need of money to help her post bail from jail, do not feel pressured to send the money immediately. Take the time to hang up the phone, dial her number directly, or confirm that this is real by talking to another family member.

Keep a few of these other tips in mind when receiving unexpected phone calls asking for money.

  • If you think it is a scam, it probably is a scam.
  • Verify the identity of the scammer by asking questions only your loved ones may know.
  • Do not give personal or banking information over the phone.

Reporting EFE

If you believe you or someone you know has fallen victim to elder fraud, contact your local law enforcement or branch of the National Adult Protective Services Association. You may also file a report with the FBI.

One way these criminals continue to find success in these schemes is by the lack of reporting. While it may feel embarrassing to admit that you have been scammed, reporting the fraud may help track down the victim or make others more aware of the fraud tactics.

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