Protecting Elderly Loved Ones from Grandparent Scams & Fraud

In recent years, there has been a troubling rise in cyber scams targeting the elderly, particularly the “Grandparent Scam.” These elder scams exploit the love and concern a grandparent may have for their families. Using fear and urgency, cyber criminals pressure and manipulate elderly people into parting with their money. It’s important for everyone to have the knowledge and tools to protect themselves and their elderly loved ones.  

What is the Grandparent Scam? 

The Grandparent Scam is a type of elder scam where cyber criminals pretend to be a grandchild or another family member in trouble. The scammer calls, posing as a grandchild or other close family member, and claims to be in an emergency like an accident, arrest, or financial trouble. The scammer always makes an urgent request for money, often using personal information from social media to make their story more believable.  

The Rise of AI Grandparent Scams 

With advancements in technology, criminals are increasingly using AI to enhance their deception—with alarming success. A study found that 25% of adults have experienced an AI voice scam, with 77% of victims losing money. AI can mimic voices taken from people’s social media profiles, making it even harder for some older people to distinguish between a real call from a loved one and a scam. With these advances, elder scams are surging. They’re in the news and on the big screen. In 2023, a Canadian grandmother lost $58,350 to a scammer using AI to impersonate her grandson’s voice. And the 2024 film Thelma, based on a true story, follows a 93-year-old grandmother on a quest to get back the $10,000 she lost after falling for a grandparent scam.  

Top Financial Scams Targeting Older Adults 

According to the FBI’s 2023 Elder Report, scams targeting people aged 60 and older resulted in over $3.4 billion in losses—an increase of about 11% from the previous year. And the National Council on Aging (NCOA) names grandparent scams as one of the top five financial scams targeting older adults. Other common fraudulent schemes include romance scams, Medicare fraud, digital travel scams, investment schemes and lottery scams. These scams collectively result in billions of dollars in losses every year, affecting the financial security and well-being of our senior population who might be retired or on fixed incomes; making the losses even more devastating. 

Identifying Grandparent Scams 

Recognizing the signs of a grandparent scam is the first step in protecting our elderly loved ones. Here are some red flags to watch for: 

• Urgency: The caller insists on immediate action, such as asking for passwords or wiring money or buying gift cards 
• Secrecy: The scammer asks the grandparent to keep the situation a secret, even from other family members 
• Unusual Requests: The request for money comes in an unusual form, such as gift cards or cryptocurrency. The scammer may direct victims to a website that looks official or identical to a banking website but are set up to steal personal information or funds 
• Emotional Manipulation: The scammer uses emotional appeals, claiming to be in a desperate situation. 

Protecting Against Elder Scams 

Preventing elder scams requires a combination of awareness, communication, and proactive measures. Here are some tips to help safeguard elderly family members:

1. Educate and Communicate

Be Cyber Aware: Cyber criminals target lonely or vulnerable people to build relationships. Be wary of people you meet online; they may not be real.

• Regular Discussions: Have regular conversations with elderly family members about common scams and how to recognize them. Keep the conversation casual and avoid lecturing or fear mongering.  
• Verification Protocols: Set up a family code phrase or verification question that only close family members would know to detect a scam. Don’t share your code phrase online and avoid using it in emails. 
• A family code phrase can help all family members protect themselves and each other from many other scams as well. Practice using it every so often to keep it top of mind. 
• Encourage Polite Skepticism: Encourage your loved ones to question any unsolicited requests for money or personal information. By encouraging politeness, our elders may feel more comfortable questioning situations. 

2. Monitor and Protect Personal Information

• Limit Information Sharing: Recommend against sharing personal information like birthdays or anniversaries on social media that scammers can exploit—this includes the grandkids. 
• Secure Devices: Prioritize online safety and ensure that elderly family members’ devices are password-protected and have updated security software. 
• 2FA / MFA: Add in multi-factor authentication for important account access…

3. Financial Safeguards

• Bank Alerts: Set up bank alerts and MFA for unusual transactions 
• Trusted Contacts: Choose a trusted family member to monitor financial accounts 
• Legal Protections: If an elderly person has been diagnosed with dementia, you may want to consider legal tools such as power of attorney to protect financial interests 

4. Get Cyber Insurance

Cyber insurance provides an added layer of protection by covering financial losses and offering support services in case of a scam. Benefits include: 

• Financial Reimbursement: Coverage for monetary losses due to fraud 
• Identity Restoration: Assistance with restoring identity and managing fraud-related issues 
• Pre-Breach Services & Support: Access to cybersecurity experts for judgement-free guidance and advice about the online world  

Real-Life Impact of Grandparent Scams 

Understanding the real-life consequences of grandparent scams can underscore the importance of vigilance. In a disturbing example, CBS News highlights what being targeted by a grandparent scam sounds like. You can hear how the scammer creates a sense of panic and urgency, leaving the grandparent little time to think rationally. Stories like these highlight the emotional and financial toll these scams can take on families. 

Stay Ahead of Grandparent Scammers 

As scammers become more sophisticated, staying ahead of their tactics is crucial. Families should: 

• Stay Informed: Keep up to date with the latest scam trends and tactics 
• Report Scams: Report any suspicious cyber activity or scams to local authorities and your local cybercrime unit. In Canada, it’s the CAFC in the US it’s the FBI 
• Support Networks: Build a support network of family and friends to help and share information 

Elder scams, particularly grandparent scams, are a growing threat that can devastate families. By staying informed, communicating openly, and having cyber insurance for your home, you are empowered to protect you and your family members from fraud.