Senior citizens are often a target of fraud. The reasons are numerous and I’ve written about them in the past. One common scam these days is the “Grandparent Scam.”

Typically, the grandparent receives an unsolicited phone call from someone claiming to be law enforcement, normally from Mexico or Canada.

The caller tells the grandparent their grandchild is being held for some sort of infraction and the child will be released simply by wiring funds. The concerned grandparent, wanting to help their grandchild, wires the funds to the fraudster.

This seems like a far-fetched story, but it is important to understand that the callers are extremely good. They will use what information they have and ask generic questions to make it seem like they really do have your grandchild.

For instance, they may use a general term referring to your grandchild, hoping that you will fill in the name for them. They may describe the “crime” as being “not severe,” but if you do not act now your grandchild will be held for several days with all the hardcore criminals.

Notice the red flags in the example above:

1) Unsolicited phone call from law enforcement

2) Foreign country

3) Wire funds

4) Sense of urgency

5) Pulls on your heartstrings

This scam may be modified to include any of the following:

• Friend traveling overseas, money was stolen

• Email solicitation for funds with a similar story

• Debt collectors for your grandchild’s accounts

Bottom line, never give out personal information to an unknown caller and never wire funds to an unknown recipient. Check out the claims first and then act. It only takes a simple phone call to verify your grandchild is home safely.

Steve Geertz, CPA, CFE is principal of BG & Company LLC in Kirkland. Contact Steve at 425-891-8752 or steve.geertz@bgco-llc.com.