While grandparent scams are not particularly new, the proliferation of technologies that enable these frauds are ever evolving. The basic premise of the scheme involves a fraudster contacting an older adult and impersonating the victim’s loved one. Variations of this fraud involve the imposter claiming to be a law enforcement officer, doctor, or lawyer who is contacting the victim on behalf of their relative. Next, the scammer deceives the victim into believing that their relative is in trouble and requires money for reasons such as paying bail or a fine, paying a doctor’s bill, or some other reason. The criminal will often ask that the grandparent not tell anyone about the situation—especially the parents of the “grandkid”—to prevent embarrassment over their (fictitious) predicament.  

By preying on family relationships, particularly the responsibility that older adults often feel for grandchildren, fraudsters can extract substantial amounts of money from victims who just want to help their loved ones.  

One consumer in Florida reported to Fraud.org that they received a call from someone who claimed to be their grandson and “was in an accident and needed money to get out of jail.” Soon after, the victim received a second call from an individual pretending to be the grandson’s public defender, providing further instructions on how to send the money. The impersonators successfully deceived the victim into paying over $9,000—a portion of which was sent via PayPal. 

Unfortunately, there are thousands of similar incidents where the victim believed they were assisting a grandchild who was in legal trouble, hospitalized, or facing other sudden expenses. Federal Trade Commission (FTC) data shows that imposter scams (which include grandparent scams as well as government impersonation fraud) has remained the most commonly-reported category of fraud since 2018. Additionally, Fraud.org’s Top Ten Scams Report of 2021 listed family/friend imposter scams specifically as the eighth most common type of fraud. 

Anyone can be a victim of the grandparents scam or other imposter scams. By familiarizing yourself with the following red flags, you can reduce your risk of being the next victim: 

1. If someone asks you to pay a bill via gift card, peer-to-peer money transfer (such as Zelle, Venmo, Cash App, or PayPal), or via wire transfer (e.g., Western Union or Moneygram), it is a strong indicator of a scam. 
2. Resist urgent requests for cash. Few legitimate legal or medical bills, if any, will require immediate payment at the time of the incident.  
3. Hang up and independently contact the grandchild in distress (or their parents) directly. Many victims of grandparent scams realize the fraud occurred once they speak with their actual grandchild, who then informs the victim that they were not in any trouble. Double checking that the family member needs help before sending cash can prevent the fraud from occurring.  
4. Consider changing the privacy settings on your social media accounts (such as Facebook, Instagram, and Twitter) to only allow your friends to view your account. This can help prevent fraudsters from finding out who your close family members are.

If you suspect that you or someone you know has become a victim of one of these scams or any other fraud, it is important that you report it. You can file a complaint at Fraud.org via our online complaint form, your local police department, your state attorney general’s office, or the Federal Trade Commission. Complaints filed with Fraud.org are shared with our network of law enforcement and consumer protection agency partners who can investigate and help put fraudsters behind bars. 

Searching for a new rental unit can be a stressful time for many consumers. Unfortunately, scammers often make the housing hunt an even bigger headache by preying on individuals seeking new accommodations. Being aware of common rental scams is an especially good idea at a time when rent prices are sky-high, and competition for affordable housing is fierce. 

Rental scams often start with a digital advertisement either for a unit that does not exist, a unit that the poster does not own, or similar situations where potential renters would never be able to actually live in the displayed housing. These scams seek victims’ money in the form of illegitimate application fees or a security deposit on the unit, usually without allowing the respondent to tour the housing in person. 

While these scams can be found on websites dedicated to apartment and rental listings, they are more prolific on loosely monitored or peer moderated forums, such as Facebook groups and Craigslist ads. Some common red flags include: 

• Either no images of the unit are included in the post or the images don’t fit the listing. While it can be harder to determine the authenticity of images when they do appear in the ad. One thing to look for are photos not matching the advertised unit, such as a large backyard in a city apartment listing.
• Generic descriptions. Landlords typically try to advertise all of their amenities, including the neighborhood and features unique to the area (such as precise public transit stops, school zones, and landmarks). Fraudulent postings often omit specific names of locations and instead use nondescript language like “near bus stops” or “in a good neighborhood.” 
• Lists an invalid address or no address at all. Sometimes the address is for a non-housing unit or a unit that is not currently available for rent. Commonly, the listing does not include an address at all and the seller will not provide one upon request.  
• The seller is out of town. Once a potential renter responds to one of these ads, the poster usually claims that they are out of town and therefore unable to give a tour of the unit. This doesn’t stop them from asking for a deposit on the place though, which raises the next red flag. 
• They push for a deposit. Or an application fee. These criminals try to get their victims’ money ASAP, frequently within minutes of communicating with the potential renter. 

Although these fraudsters can add to the frustrations of moving, there are a number of tips you can keep in mind to stay on guard. 

1. Look closely at any images provided. Search for inconsistencies, either from photo to photo or between the listing and the photo. Additionally, conducting a reverse Google Image search may confirm suspicions if the pictures appear in other, unrelated results. 
2. Ask for details. If the seller is unable to provide an address, the name of the neighborhood, nearby landmarks, or other critical information, it’s best to look elsewhere. 
3. Don’t pay until you see the place in person. Going on a tour of your future housing unit can help to determine the listing’s authenticity, in addition to revealing previously non-disclosed issues. 
4. Wait to provide personal information or payment. Until thorough vetting has taken place, including a tour if possible, hold off on handing over money or sensitive information. 
5. Search for third-party reviews. Established housing companies often have a reputation that can be easily found online. While the absence of reviews isn’t necessarily a major red flag (especially for smaller buildings and landlords), previous renters can provide great insight before you commit to a move. 
6. Question abnormally inexpensive listings. Search for similarly-sized listings in the neighborhood of the listing you are considering. If similar rentals near yours are priced significantly higher, your dream rental may be too good to be true. 

 

Be an ally in the fight against fraud!

If you suspect that you or someone you know has become a victim of one of these scams or any other fraud, don’t just delete the message — report it at once to the social media platform. You can file a complaint at Fraud.org via our online complaint form. We’ll share your complaint with our network of law enforcement and consumer protection agency partners who can investigate and help put fraudsters behind bars.

With a busy travel season fast approaching, it does not hurt to get a refresher on common scams to avoid as well as critical safety tips to keep in mind while out of town. From bogus travel booking sites to fake vacation scams, there is a lot to be mindful of when navigating the next few months.

Not-so-“free” vacations

Free vacation scams are a persistent complaint no matter the time of year, but they may appear particularly enticing during the summer holidays. Beware of unsolicited alerts that you have won a vacation via a sweepstakes you never entered. These offers only exist to steal your money, your identity, or both. Even contests you do voluntarily enter should be carefully scrutinized to ensure that you’re not providing contact information to criminals.

Too good to be true getaways

Fraudulent booking agencies and websites for travel accommodations commonly prey on summer vacationers. These types of scams often advertise deals that sound too good to be true or utilize branding and naming that closely resembles (if not identical to) legitimate booking entities. Using one of these agencies or sites, you may think that you secured plane tickets for the July 4th holiday when in reality, fraudsters stole the money and your personal information.

Avoid “phantom rentals” on popular vacation rental platforms

Vacation rental marketplaces like Airbnb are becoming increasingly popular havens for scams. A typical scam involves a prospective owner pushing for you to pay outside of the primary website’s platform or to provide them with personal contact information (neither of which Airbnb allows). Additionally, fraudulent postings often use unrealistic or manipulated photos and fake or incentivized reviews to advertise a non-existent—or subpar—listing.

Follow these tips to reduce your risk from scams this summer:

• Scrutinize contests and rewards before entering. Unsolicited sweepstakes often only exist to extract personal information and money. Common red flags on a website include typos—especially in the URL – as well as unprofessional web design and an unusual number of pop ups and other ads. Search for third-party reviews about the sweepstakes (e.g. [sweepstakes name] and “scam”). If there’s any doubt about the legitimacy of a sweepstakes, it’s smarter to just steer clear.
• Authenticate hotels, Airbnb’s, and travel agencies. Similar to the point above, emails, websites, and other products of the suspect company may give clues as to their authenticity. Often, if you see a deal that’s too good to be true, that’s because it is.
• Using trusted friends or media publications like Consumer Reports or the Better Business Bureau can be a safe way to find reputable listings.
• Make purchases with a credit card. Credit cards have stronger fraud protections than debit or peer-to-peer payment platforms like Venmo, Zelle, or PayPal. Just be sure to dispute any suspicious transaction in a timely manner.
• Take precautions when using public Wi-Fi. Unsecured networks allow other users on the network to view your internet activity. Avoid entering confidential information (such as financial credentials) and try to only access protected websites (beginning with “https”) if you’re on a public Wi-Fi hotspot. Many cell phone plans allow you to turn your mobile phone into a personal hotspot, which can be more secure than public Wi-Fi.
• Don’t let everyone know you’re traveling. Especially if you live alone, this acts as a beacon to let intruders know your (temporarily vacant) home is an easy target. Save the social media posts for after you return.

 

Be an ally in the fight against fraud!

If you suspect that you or someone you know has become a victim of one of these scams or any other fraud, don’t just delete the message — report it at once to the social media platform. You can file a complaint at Fraud.org via our online complaint form. We’ll share your complaint with our network of law enforcement and consumer protection agency partners who can investigate and help put fraudsters behind bars.

Fraud.org’s annual Top Ten Scams Report for 2021 is out! Although fewer consumers reported monetary losses due to fraud when compared to 2020, the median amount lost has hit a 10-year high. This comes as everyone is adjusting to a much more virtual way of life, with the pandemic entering its third calendar year. Notably, an explosive growth in cryptocurrency seems to have driven a 168 percent increase in investment scams, a Fraud.org category which includes cryptocurrency fraud. The full Top Ten Scams Report for 2021 can be found here.

Top Ten Scams of 2021

1. Prizes/Sweepstakes/Free Gifts
2. Internet: General Merchandise
3. Phishing/Spoofing
4. Fake Check Scams
5. Friendship & Sweetheart Swindles
6. Investment: Other (incl. cryptocurrency scams)
7. Advance Fee Loans, Credit Arrangers
8. Family/Friend Imposter
9. Computers: Equipment/Software (incl. tech support scams)
10. Scholarships/Grants

Sweepstakes scams, which made up 35 percent of all reports received by Fraud.org, were the #1 type of scam for 2021. With a median loss of $795 resulting from this form of fraud, Sweepstakes scams had been a steadily rising complaint on Fraud.org’s radar. The basic premise involves a victim being notified that they won a prize or other monetary reward, but in order to claim it, they must first send the fraudster money. Victims are often asked for more payments before being able to claim their reward and the cycle continues, never allowing the victim to receive their (likely non-existent) prize.

While sweepstakes scams took the top spot, investment fraud was the fastest growing category, more than doubling its share of reported complaints. We believe this is due to the surge in cryptocurrency scams as scammers take advantage of the new and often inadequately regulated market. The median loss for this category was $1,750, our second highest median loss (even though this form of fraud represents only 3 percent of the reports we received). The disproportionate harm we’re seeing here should serve as a warning to consumers who may be searching for new investment portfolios.

This year’s new entry: fraudulent offers of scholarships or grants. Ranking at #10, this category had a median loss of $1,000 and grew almost 25 percent compared to data from 2020. While simply applying to a counterfeit grant already involves risks stemming from providing personal information to deceitful actors, the monetary damage is extra punitive. Similar to sweepstake scams, fraudulent grants may promise their award only after the victim provides a payment, possibly hidden in an “application fee.”

Tips to guard against fraud

1. Be wary of strangers requesting payment. It may seem like common sense, but anyone awarding a prize, distributing grants, or offering a job should not ask for up-front payments before providing what was promised.
2. Look for outside references. Legitimate sweepstakes, grants, and even cryptocurrency markets will often have some type of press campaign associated with them. Search for verifiable news coverage or crowdsourced user reviews rather than relying on the scammer’s word.
3. Check for typos. Common internet scams involve a popular website or company name, but with one letter missing or added. Although easy to miss, catching this red flag can be a lifesaver.
4. Verify identity. Similar to the second tip, finding an outside channel to verify identity can prevent imposter fraud. Texting a friend’s phone number to ensure the social media DM really came from them or calling your grandmother to check if she actually sent that email often takes no time at all and keeps you safe.

The Top Ten Scams Report was compiled from more than 4,300 complaints filed by consumers with Fraud.org in 2021. We share these complaints with our network of law enforcement and consumer protection agency partners who can investigate and help put fraudsters behind bars. If you or someone you know has been a victim of a scam, we urge you to file a complaint at Fraud.org via our online complaint form.