Older Americans are increasingly the targets for financial exploitation. There are two scams in particular that are widely used by fraudsters that seniors should be especially aware of. One is known as the “grandparent scam”, and the other is the “advance fee scam.” Community Bank of Oak Park River Forest wants to make sure you know the facts about these scams in order to protect your financial security and the security of loved ones.
GRANDPARENT SCAM
The next time you receive a frantic call from someone saying they are your grandchild and asking for money, make sure it’s actually your grandchild who’s calling. According to the Federal Trade Commission, between 2012 and 2014, consumers reported more than $42 million in losses from scams involving the impersonation of family members and friends. This scam, commonly known as the “grandparent scam,” is a form of financial abuse that maliciously targets older Americans.
To commit this crime, fraudsters call claiming to be a family member in serious trouble and in need of money immediately. The scammer might say he’s stranded or has been mugged, and call in the middle of the night which adds to the urgency and confusion of the situation. Once the money is wired, the victim later finds out that it wasn’t their grandchild they were helping after all, it was a criminal instead.
The grandparent scam has been around for years, but has been gaining popularity. As fraudsters become more sophisticated, it is extremely important for older Americans to confirm who they are speaking with on the phone, especially before they send someone a large amount of money. Community Bank offers older Americans these tips to help them avoid the grandparent scam:
- Confirm the caller. Fraudsters are using social networking sites to gain the personal information of friends and relatives in order to carry out their crimes. Verify the caller by calling them back on a known number or consult a trusted family member before acting on any request.
- Don’t be afraid to ask questions. Fraudsters want to execute their crimes quickly. The more questions you ask the more inclined they will be to ditch the scam if they suspect you’re on to them.
- Never give personal information to anyone over the phone unless you initiated the call and the other party is trusted.
- Never rush into a financial decision and trust your instincts. Don’t be fooled – if something doesn’t feel right, it may not be right. Feel free to say no and get more information before you send money to someone.
ADVANCE FEE SCAM
According to the U.S. Senate Special Committee on Aging, lottery scams rank second on the list of fraud offenses reported by older adults, claiming thousands of victims each year. These scams, also known as the “advance fee scam,” involve fraudsters issuing counterfeit checks and fake award letters to consumers alleging that they have won a lottery or sweepstakes raffle. The individual is instructed to pay taxes and fees upfront in order to claim their “winnings,” but after they send the money, they find out that they haven’t won anything at all. Keep in mind that you should never pay a fee to win a lottery. Older adults especially need to be wary of any reward letter or check they receive instructing them to pay upfront in order to collect their prize money. More than likely it’s a scam. Before you participate in any lottery or sweepstakes, Community Bank encourages you to keep these tips in mind:
- Don’t be fooled by the appearance of the check. Scam artists are using sophisticated technology to create counterfeit checks that mirror the appearance of legitimate checks. Some are counterfeit money orders, some are phony cashier’s checks, and others look like they are from legitimate business accounts. The companies whose names appear may be real, but someone has dummied up the checks without their knowledge.
- Never “pay to play.” There is no legitimate reason for someone who is giving you money to ask you to wire money back or send you more than the exact amount —that’s a red flag and it’s a scam. If a stranger wants to pay you for something, insist on a cashier’s check for the exact amount, preferably from a local bank or one with a local branch.
- Report any suspected fraud to your bank immediately. Bank staff are experts in spotting fraudulent checks. If you think someone is trying to pull a fake check scam, don’t deposit it—report it. Contact your local bank immediately.
If you would like to talk about protecting your financial security, feel free stop in or call Community Bank of Oak Park River Forest at 708.660.1000. You can also visit our website at
https://www.cboprf.com/g-banking-toolkit for more information on financial security. Community Bank has two locations: 1001 Lake Street, Oak Park and 7777 Lake Street, River Forest.
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