Watch Out for the ‘Rich Grandma Scam’ That Has Already Claimed at Least One Victim
Beware of a Facebook Message that seems too good to be true.
If you think you would be able to spot a scam from a million miles away, just be aware that scammers are getting smarter. Scams are continually changing and targeting victims that are the most vulnerable at the time. The best way to defend ourselves from any potential scam is to be aware of their tactics. There seems to be a pattern of either urgency or too-good-to-be-true scenarios that initially raise questions that you shouldn't ignore. The most recent scam is the "rich grandma scam."
Many of us are already aware of the grandparent scam that targets the elderly claiming that a grandson or daughter is in trouble and in need of money. This new rich grandma scam, however, seems to target younger generations with the claim of an extravagant gift through a Facebook message. It's one of those gift card scams that you want to be true, so you may be more susceptible to believing it is.
To keep yourself from becoming a victim of such a scam, read on to find out how the rich grandma scam is played out and who its most vulnerable victims are.
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What Is the Rich Grandma Scam?
This latest online scam is called the rich grandma scam because someone posing to be an elderly woman sends an intriguing message through Facebook Messenger. The victim gets a message from an "elderly grandma" that states she wants to gift 1.5 million dollars plus a new home. There is just one caveat to this gift, she needs to have the taxes, in the amount of $15,000, paid upfront via gift cards. Although this seems unbelievable, people are falling for it. The question is why?
Scammers are smart and they will tell a story in a way that could be perceived as true. That's why a woman from Braselton, Georgia recently fell for the scam according to the Athens Banner-Herald. In this scam, two men claim to be the grandmother's son and his lawyer, and they keep the conversation going with the victim. They claim that the grandmother won $343 million dollars in a Powerball lottery. Although it isn't noted exactly what they said to the victim, you can be certain that they made it sound as believable as possible.
The fact that the message was coming from a supposed Facebook contact and the grandma apparently won so much money, it's not a stretch to believe that maybe she would want to spread some of her winnings with other people—especially if she didn't expect to live for many more years. Who knows what else the scammers might say to convince their victims?
Once the scammers get a victim to fall for it, they make up a story about how they need to be paid for the taxes upfront using gift cards. The most recent victim did just that. She collected gift cards from several different stores that totaled the $15,000. Once she got the gift cards, she was told to take pictures of the cards and give them the activation numbers over WhatsApp. After doing that, she then received three separate checks from the supposed grandmother in the amounts of $50,000, $15,000 and $2,000 which all ended up bouncing. So, the scammers get their $15,000 via gift cards and the victim is totally out of the money.
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What Age Group Is Most Susceptible to Scams?
At first thought, you would probably think that the elderly are the most susceptible. However, according to the Better Business Bureau, the age group of 18 to 24-year-olds was at the highest risk for scams in 2020. So, who do you think is going to be preyed on the most for this rich grandma scam? Those young adults are going to be the most vulnerable to a scam that claims a huge windfall of money. Even if a scam seems too good to be true, they may fall for it more easily.
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How To Protect Yourself From the Rich Grandma Scam
There are some key red flags that should make you question any type of scam like this.
You are asked to make payment via gift cards. This is a huge red flag. Ask yourself, why gift cards? In this particular scam, the money was supposedly needed to pay taxes and gift cards are never accepted as a form of payment for tax.
The amount of gift money seems too good to be true. You know the old adage that if it seems too good to be true, it probably is. This is the point where you'll want to do some investigative work. Try to find out what Facebook account the message came from. Is it from someone that you are supposed to know, even just casually? If so, try to contact the person yourself for verification.
A new home is part of the gift. Ask for the complete address of this "new home" right up front. Then, look it up or go to the county clerk's office to verify ownership or even stop at the house and talk to whoever is there to verify the claim. If they don't even want to give you an address, this would be another red flag. Remember, they could give you any address out there so it's imperative to do your research.
Even with these red flags, if you are still feeling like the situation could be true, tell someone else about it. Contact family, a lawyer or a friend to give you their opinion. It's always good to have a sounding board for any big decision.
