What is a grandparent scam? 3 signs to look out for and how to protect your loved ones

Experts reveal the three telltale signs families need to know to help protect their loved ones from 'grandparent scams'. 

We know it's important to protect kids from the darker sides of the internet, with many wondering if TikTok is safe for kids and teenagers, but it's not just the younger generations we should be looking out for when it comes to phone safety. 

That's because cybercrime is massively increasing and now, in a similar vein to the cruel WhatsApp scam that's targeting parents, criminals are scamming grandparents out of vast sums of money by pretending to be their grandchildren and requesting money from them. 

The scammers will text or call, using AI technology to skew their voices, posing as a grandchild. They often claim to be in some emergency situation, ranging from them being stranded somewhere away from home or being in legal trouble, and asking the grandparent to immediately transfer them money to help. 

It's a massive problem. According to the FBI’s Elder Fraud Report, financial crimes against senior citizens in 2023 took a massive $3.4 billion from them. So what can families do to protect their loved ones from falling for these scams?

According to financial experts from Allegius Credit Union, who spoke to Valpo, there are three common signs to look out for when it comes to grandparent scams; 

1. Urgency of request. Scammers create a sense of urgency to pressure victims into sending money without thinking things through properly. This often manifests in demanding language, with the scammer highlighting the distress the 'grandchild' is in to pull on a grandparent's heartstrings. They need the money 'now, now, now!' 

2. Secrecy. Scammers often tell a grandparent not to tell anyone about the money they're sending, pretending that, as the 'grandchild,' they're embarrassed at the situation they find themselves needing money for. Examples might include, "I've crashed my car, please don't tell mum and dad but I need money to get it fixed," or "I'm calling from jail - mum and dad would kill me if they knew, please can you send me the bail money?" 

3. Unknown person making the request. Scammers can't contact you using your grandchild's phone number or email address. To get around this, they may say that the grandchild's phone is broken, or lost, and they're calling from a friend's phone.

While knowing the signs makes them easier to spot, when you've been frantically called by a worried or scared 'grandchild,' it can be hard to keep a clear head and remember what you're meant to be looking out for. So, if you think you may be being called by a fraudster, the experts say; 

1. Do not rush. Despite all the urgency the fraudster is creating, do not panic. Speak to them, asking for as many details as they can give, and then take your time to assess the situation carefully before acting on their request. 

2. Verify identity. Ignore the caller's request to keep things a secret and contact the grandchild whose supposedly calling by using your saved number for them. Reach out to them directly and also to another family member to corroborate the situation and make sure it's really them. When speaking to the potential scammer, also make sure to ask questions that only the person they supposedly are would know the answers to. 

Unless you can verify 100% that it's your grandchild on the line, do not send them any money. If you do, and believe it may be a scam, the experts at Martin Lewis's MoneySavingExpert.com, say to contact your bank immediately. 

"Your first port of call is to contact the bank where your money was taken from, or the one from where you sent the funds, and explain what happened," they say. "While there's no guarantee your bank will reimburse you if you have been scammed, this is your best bet in the first instance. Banks should adopt a case-by-case approach.

"From October 2024, your bank will be more likely to reimburse you if you've transferred money to a scammer thanks to new fraud compensation rules being introduced by the Payment Systems Regulator."

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