Don’t Be Fooled By the Grandparents Scam!

July 19, 2011

Since I specialize in workplace financial education, I typically write about what’s going on in the HR world.  But, last month something happened to my family that’s so shocking I just had to share our experience.  My father had just celebrated his 78th birthday, and my parents got a call from my 25 year old nephew, Matt.   Now, you may be thinking, “isn’t that nice that he’d call to wish his granddad a happy birthday,” but instead he told an elaborate story that went like this:

“Guess, who?  It’s your oldest grandson!  (So my father says, “Matt, is that you?”)  Yes, and I need your help.  I traveled to Canada to attend a friend’s funeral, along with some other friends.  I wasn’t driving, but we got in a bad accident and when the cops came to the crash there were drugs in the car.  I had no idea about the drugs, but they arrested me and I need you to post bond for me so they don’t put me in jail.  Please don’t tell my mom and dad! (my brother and sister-in-law).  The cop here wants to give you instructions in order to get me out of here.”

So he hands the phone to a supposed Canadian official who then proceeds to give my father specific instructions on how to wire $5,800 by Western Union to an account number, and if he does so within the next 3 hours, he’ll let my nephew go and won’t report the incident to U.S. authorities.

Now, a bit of a back-story.  My nephew moved to California from Maryland a few years ago after a falling out with my brother, and the only communication my parents have with Matt are very occasional emails, but there has been no communication at all between Matt and his parents.  So, they hadn’t heard his voice for a long time in order to recognize him, and asking not to tell his mom and dad made sense.

Due to the 3 hour deadline, my father jumped immediately into the car and headed to the bank to withdraw the $5,800 in cash.  Meanwhile, my mother calls me to tell me about the situation.  I had heard of this grandparents scam before and I knew it was fraud, so now the rush was on to catch my dad before he wired the money.  Of course, as luck would have it, he doesn’t carry a cellphone around so I called the Western Union he was going to and asked them to have him call me before he wired the money.  I also explained the situation and the Western Union rep agreed with me that it was a common scam.

So, the good news is, my parents did not lose the $5,800 and my nephew is safe and sound in California.  But, it sure did ruin my father’s birthday!

So here are some tips if you ever get a similar call:

  • Take notes, including jotting down the phone number from caller ID.
  • Verify your family member’s location by talking to other relatives, and TELL SOMEONE ELSE.
  • Contact the U.S. Embassy in the foreign country to ask for assistance and to confirm the arrest.