"Grandparent Scam" Targeting Local Communities

‘Grandparent Scam’ one of many methods used by scam artists

UNION GROVE – Community State Bank is taking extra measures to help protect its customers from an increasing number of scams.

Scammers frequently attempt to gain customers’ personal information – often preying on those most vulnerable – to manipulate actions through false storylines.

A “Grandparent Scam” was recently identified and prevented when a Community State Bank employee helped a customer that entered the bank.

“A customer was on the phone with a scammer for over six hours and came in disoriented, trying to take money out and said they couldn’t talk to anyone,” CSB Harvest Club Director Jenny Braun said.

“(Senior VP Neil Buchanan) was called over to my office to speak with the customer and Neil was absolutely great with our customer. Neil spoke with the scammer and the scammer immediately hung up.”

According to the FTC (Federal Trade Commission), the “Grandparent Scam” is one of many tactics used by bad actors.

Here's how the scam works. Scammers often contact the victim with an urgent phone call or email, pretending to be a grandchild or someone with important information regarding a family member.

The scammers typically demand promptness and secrecy. Funds are often requested for a fake emergency to cover fees, bill or other expenses. As the scam goes, a family member is typically in some type of danger, hurt, in jail, or stranded.

The imposter will finally give specific instructions on how to transfer funds with options including cash, wire transfers or gift cards.

One of the most effective ways to stop scam artists is awareness, according to Caitlyn Eulgen, Community State Bank Security Operations Coordinator.

Eulgen said to exercise caution and ask questions only those close to you would know.

“Fraudsters are unlikely to have specific details such as your grandchild's middle name, parents' names, or pets’ names,” Eulgen said. “This is an easy way to verify the legitimacy of the call.”

Here are eight tips to avoid becoming a victim of the “Grandparent Scam.”

1. Verify the Caller: If you receive a call from someone claiming to be your grandchild in trouble, hang up and call your grandchild or another family member directly using a known number.
2. Ask Personal Questions: Ask the caller questions that only your real grandchild would know the answers to. Scammers often rely on vague information.
3. Don’t Trust Caller ID: Scammers can spoof caller ID to make it look like the call is coming from a trusted source.
4. Avoid Unusual Payment Methods: Be wary if the caller asks for payment via gift cards, wire transfers, or cash. These are common red flags for scams.
5. Set up a Family Code Word: Establish a code word with your family that can be used to verify identities in emergencies.
6. Limit Information Sharing: Be cautious about what you share on social media. Scammers can use personal details to make their stories more convincing.
7. Watch for these three red flags: Urgency, the caller needs you to do something immediately. Secrecy, the caller doesn't want you to talk to anyone about it (especially your bank). Jeopardy, someone you know is in danger. Any one of these three red flags could mean someone is trying to scam you.
8. Report Suspicious Activity: If you suspect a scam, report it to the Federal Trade Commission (FTC) at ReportFraud.ftc.gov and to local law enforcement.