As Fraud Prevention Month comes to a close, Ontario Provincial Police (OPP) are spreading the word about the notorious “Grandparent Emergency Scam” in hopes of keeping seniors in the community safe from fraudsters.
According to the Canadian Anti-Fraud Centre, 2022 was a record year with people across the country losing about $530-million in reported fraud. This is up over 40 per cent from 2021, according to Detective Constable John Armit from the OPP Serious Fraud and Anti-Rackets Branch.
Constable Erin Fraser said anybody can fall victim to an "emergency scam" - in fact $9.2 million of the money Canadians lost to fraud was through schemes like the Grandparent Scam. Armit added that elderly people are the most common victims of fraud and give about 33 per cent more in these transactions compared to other populations.
“These fraudsters use a sense of urgency and manipulation for the emotions of seniors to essentially get them to send money,” explained Constable Lisa Cruz.
In most instances, Cruz said, the Grandparent Scam follows the same general formula: A victim will receive a cold call with the person on the other end claiming to be their family member or grandchild. In some cases, they may pose instead as a police officer or lawyer calling on behalf of their kin.
From there, the fraudster convinces the victim that their family member is in some kind of legal or medical emergency and they need money to be sent immediately to keep the relative from going to jail or to have them released.
The victim will then receive instructions on how the funds should be sent. Much of the time, the elderly person is told to withdraw cash at their bank, and someone will come around to pick it up from their house. However, fraudsters have also been known to use cryptocurrency as part of the scam.
Oftentimes, the fraudster will isolate the victims by telling them there is some kind of court-imposed gag order and they cannot talk to anybody else about the matter.
Fraser and Cruz emphasized that the sense of urgency created in these situations keeps victims from noticing red flags.
“If victimized, the person is left feeling not only the financial hardship, but as well, the emotional effects and complex feelings of being exploited and vulnerable. And although they shouldn’t feel this way, they may feel ashamed of what has happened to them,” said Fraser.
This sentiment was echoed by Karen Pyatt-Westbrook from the Older Adult Centres' Association of Ontario, who explained the emotions that older folks go through after falling prey to con artists.
“It leaves a lot of these people feeling isolated, feeling victimized, embarrassed. Often we hear that they don’t want to share this with their family members because they are scared of losing the independence that they have, or they don’t want a family member to view them in a different light. So it is very hard on them,” Pyatt-Westbrook said.
These instances take even more of an emotional toll, Armit explained, when elderly folks realize that fraudsters know and have been to their home address. This fact can leave folks, many of whom live alone, feeling unsafe in their own houses.
For those who find themselves on the receiving end of one of these phone calls, police advise you to slow down, hang up the phone, and call your relative directly.
Police also said it's best to be suspicious whenever there is a demand for immediate action over the phone.
Never send money in any form - cash, cheque, e-transfer, cryptocurrency, or gift cards - to a person, address, or bank account that you don’t know.
For those who do fall victim to the scam, Armit recommends taking note of all information that was exchanged and contacting local police as well as the Canadian Anti-Fraud Centre.
The anti-fraud agency also has helpful information on their website outlining various types of scams, how to protect yourself, and a step-by-step guide on what to do if you become a victim.