Grandparents across the nation are falling prey to a costly hoax that has them believing their loved ones are in trouble and need help in the form of emergency cash.
Dubbed the "grandparent scam," perpetrators call unsuspecting adults saying their grandchild is in jail or was in an accident and needs money immediately, as the New York Daily News reported. Eager to help a loved one the victim gives up the money without question, sometimes purchasing pre-paid debit cards and transferring the money to the caller according to the instructions.
Over 25 million adults in the U.S., roughly 10 percent, were tricked by the phone scam in 2011. Sometimes the callers pretend to be the grandkids themselves and beg the victims not to tell their parents.
One 81-year-old man testified at a Senate hearing on Wednesday about the call he received from a man he thought was his grandson who was arrested on drug charges, the Daily News reported.
"Grandpa, this is your favorite grandson," the voice told the senior, who did not reveal his name at the hearing.
The 81-year-old bought several pre-paid debit cards and read the card's codes to the caller so his grandson would be released. He gave up $7,000 before he realized what was happening.
An estimated 127,000 phone scams were reported last year, said Senator Susan Collins, who was targeted by the grandparent scam but didn't fall for it. But stopping the scams isn't easy because the culprits have proven to be elusive.
"One difficulty in shutting down this scam is that many perpetrators are located overseas, and the vast majority of the victims are told to send funds through wire transfers, which are very difficult to trace," Lois Greisman of the Federal Trade Commission said according to the newspaper.
The Internet and technological advances that have made calling inexpensive also makes it difficult to trace where the calls come from. Until law enforcement technology catches up, it appears the best thing people can do is report when they receive a suspicious call.
"We agree this is a tragic circumstance and are certainly committed to that," FBI official Joseph Campbell said at the hearing, the Daily News reported. "We encourage the public to report."
