Fighting Fraud
By BBB, Cleveland
While grandkids are out shopping for backpacks, picking out tech upgrades, and prepping for a new school year, scammers are out shopping for targets. August marks a major seasonal transition. Families are distracted, young adults are moving away to college campuses for the first time, and routines are upended. Unfortunately, bad actors know exactly how to exploit this emotional, fast-paced timing. During this time of year, BBB historically sees a significant uptick in family-related impersonation scams, commonly known as the Grandparent Scam.
Here is what you need to know to keep your heart, your family, and your wallet safe this August.
How Scammers Exploit the School Year
Imagine the phone rings. On the other end is a voice that sounds remarkably like your grandchild. They are panicked, crying, and the connection is a bit fuzzy.
They tell you they’ve arrived on campus early for freshman orientation or late-summer sports practices, but disaster has struck:
“I got into a late-summer fender bender on campus, and the police won’t let me leave without paying.”
“I messed up my tuition payment, and they’re going to kick me out of the dorms if I don’t pay right now.”
“I lost my wallet at an off-campus restaurant, and I’m stranded.“
The caller pleads with you to send money immediately, adding a crucial catch: “Please don’t tell Mom or Dad; they’ll be so mad at me.“
By leveraging the natural anxieties of the back-to-school season and your deep love for your family, scammers trick you into acting on pure emotion before you have a chance to think logically.
Key BBB Takeaways to Protect Yourself
To protect your hard-earned savings from these aggressive impostors, keep these three BBB consumer protection strategies in mind:
1. Spot the “Emergency” Red Flag
The biggest indicator of a potential scam is a dual demand: extreme urgency combined with strict secrecy. Scammers use urgency because they know that if you take even 10 minutes to breathe and think, you’ll realize something is wrong. They demand secrecy to prevent you from calling the grandchild’s parents to verify the story.
BBB Tip: If a caller tells you not to reach out to other family members, that is your cue to do exactly that. Hang up immediately and call your grandchild or their parents directly on their known, official phone numbers.
2. Establish a “Family Code Word”
With the rapid rise of Artificial Intelligence (AI), scammers can now easily mimic a loved one’s voice using just a short, public video clip from social media. You can no longer rely on voice recognition alone.
One of the most effective, low-tech shields against high-tech fraud is the Family Code Word strategy. Sit down with your kids and grandkids before they head off to school and agree on a secret word or phrase that only your family knows. If someone calls claiming to be in an emergency, ask them for the code word. If they can’t provide it, you know instantly that it’s a trap.
3. Understand the “Currency of Choice”
If the person on the phone asks you to send emergency funds via gift cards, digital wire transfers, or prepaid debit cards, it is likely a scam. Why do scammers love these payment methods? Because they are the digital equivalent of handing over cold, hard cash.
Once you give a scammer the PIN on the back of a gift card or authorize a rapid wire transfer, the money is gone instantly, and law enforcement or your bank can’t track or recover it. Legitimate entities, including universities, law enforcement, and auto repair shops, will never demand payment via gift cards.
If you’ve been the victim of a scam, report it to the BBB Scam Tracker. Your report helps us build consumer awareness and neutralize scammers’ go-to tricks. Have additional questions? Reach out to your BBB at 216.241.7678 or [email protected].
