Fraud Prevention

A caller contacts you on the telephone identifying himself or herself as your relative. The caller also might impersonate third parties, such as an attorney, law enforcement officer, or some other type of official, such as a U.S. Embassy representative. He or she asks for financial assistance because he or she is having a legal or financial crisis such as getting into a car accident in a nearby jurisdiction.  Once potential victims appear to believe the caller’s story, they are provided instructions to wire money to an individual to assist the relative in their time of crisis.

Here’s how it might happen:

• The suspect calls and says he needs money immediately. If he does not settle the accident right then and there, he will go to jail. If the victim agrees to help, the suspect will then send a friend to get the money at the victim’s house.

• The second suspect (the friend of the ‘relative’) shows up at the victim’s house to get the money. He has been told what names to use with the victim when picking the money.

• The victim finds out later that the relative never called and asked for the money.

They impersonate your loved one convincingly:

It’s surprisingly easy for a scam artist to impersonate someone. Social networking sites make it easier than ever to sleuth out personal and family information. Scammers also could hack into the e-mail account of someone you know. To make their story seem legitimate, they may involve another crook who claims to be an authority figure, like a lawyer or police officer.

They play on your emotions:

Scammers are banking on your love and concern to outweigh your skepticism. In one version of this scam, con artists impersonate grandchildren in distress to trick concerned grandparents into sending money. Sometimes, this is called a “Grandparent Scam.”

They swear you to secrecy:

Con artists may insist that you keep their request for money confidential – to keep you from checking out their story and identifying them as imposters. Victims of this scam often don’t realize they’ve been tricked until days later, when they speak to their actual family member or friend who knows nothing about the “emergency.” By then, the money they sent can't be recovered.

They insist that you wire money right away:

Scammers pressure people into wiring money because it’s like sending cash – once it’s gone, you can’t trace it or get it back. Imposters encourage using money transfer services so they can get your money before you realize you’ve been scammed.

What to do if approached in this manner:

If someone calls or sends a message claiming to be a family member or a friend desperate for money:

• Verify it’s an Emergency;

• Resist the urge to act immediately, no matter how dramatic the story is;

• Verify the person’s identity by asking questions that a stranger couldn’t possibly answer;

• Call a phone number for your family member or friend that you know to be genuine;

• Check the story out with someone else in your family or circle of friends, even if you’ve been told to keep it a secret;

• Don’t wire money or send a check or money order by overnight delivery or courier;

• Report possible fraud at ftc.gov/complaint or by calling 1-877-FTC-HELP.