RCMP ‘F’ Division Commercial Crime Section Advisory Re: Mass Marketing Fraud: Grandparent Scam

December 18, 2009

In the last month there has been a marked increase in the number of complaints regarding the “Grandparent Scam” (often referred to as the “Emergency Scam”), specifically in the southern area of the province.

Across Canada, 356 complaints have been made to the Canadian Anti-Fraud Call Centre (PhoneBusters), so far this year, with 108 people reporting they have been victimized for a total loss of $370,424. This type of scam is currently in PhoneBuster’s top three list.

Scam Details:
In a typical scenario, a grandparent receives a phone call from a con-artist claiming to be one of his or her grandchildren. The caller goes on to say that they are in some kind of trouble, usually a car accident, impaired driving, or need bail money for something. In most instances, the caller claims to be located in either Toronto or Quebec.

The scammers use little tricks to con seniors, such as disguising their voices by crying. They might start off the conversation, saying, “It’s me, your favourite grandchild,” to which the grandparent will guess the name. Or they might say, “Grandma? Do you know who this is?” Once the grandparent offers a name, the scammer uses it to gain credibility.

Victims don’t verify the story until after the money has been sent as the caller specifically asks that they do not want other relatives to know what has happened by asking, “Can you please help me? I’m in jail (or in the hospital / or in some type of financial need). But don’t tell Mom or Dad. They would kill me if they found out. Please sent the money ASAP - I’m scared.”

Wanting to help their grandchild, the victim sends money electronically through a money transfer company. Once the money has been sent via wire transfer, it can be picked up anywhere in the world are is hard to track once received by scammers. At this point, money is usually not recoverable by law enforcement or banking officials.

In many cases, victims are contacted by a second person claiming to be their grandchild’s lawyer requesting more money for bail or legal fees. Two cases in the last month have used the same fictitious name from a law firm in central Canada.

The best way to combat this crime is through public education. Be wary of unsolicited phone calls attempting to extract money from you or asking you - with urgency -to transfer money electronically. Verify who you are speaking to is a relative and not a con-artist. A simple phone call to a real family member could prevent you from becoming a victim in this scam. Please do not hesitate to contact your local police for assistance.

To learn more about this scam, and other scams affecting Canadian residents, please visit www.phonebusters.com

*Note: Phonebusters is a national call centre that gathers and reviews fraud reports from within Canada in order to determine trends and statistics.

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For further information, please contact:

Cpl. Trevor Ellis
RCMP “F” Division Commercial Crime Section
Phone: (306) 780-6005