The Bergen Record last week ran a story about the dangers of the “grandparent scam.” Basically, it works this way: Using information all too readily available on social media and the Internet, the fraudsters call the grandparents of a college age kid. Using the kid’s real name, the con artist, pretending to be the grandkid, spins a tale of woe about being arrested for some minor crime in some third-world country. Here’s the bottom line: “Grandma, I need you to wire money to the authorities by Western Union right away so I can get out of jail.” Done well, the grandparents fall for it and are soon ripped off. Owing to my long career at the Financial Industry Regulatory Authority, I have in recent years emerged as an authority on consumer fraud. Heck, the Record quotes me from time to time. As a public service, I offer some pointers on how to hold onto your money. As usual, I find humor in most of this stuff.
Never, EVER give out sensitive info in a call you did not originate
This one is a simple rule and should be ironclad. Whether the call is legit or not, thank the caller and tell them you will independently verify. Just think of Dutch Reagan and the Russians: “Trust, but verify.” So, for example, suppose your credit card issuer calls about suspicious activity on your card. Just say “Thanks, I’ll call the number on my card and see if this is real.” Usually, they will even give you a reference number for your case. But it they offer a direct phone number, ignore it and call the one on your card or statement.
The humor: I got one of these calls from Amex a few years ago when my wife Ellen was in Israel. They had detected what they thought was unusual spending “in the Middle East” and needed me to verify purchases. I called the number on our Amex card, and the inquiry was real. It being 3 a.m. in Israel I was not about to call Ellen to have her verify the charges. They sounded legit—a bunch of purchases on Ben Yehuda Street—but for all I knew she had lost her card and a thief had gone on a spending spree. We then had this conversation:
ME: These might be OK, but I really can’t verify these charges. She’ll have to call you when it’s morning in Israel. What’s the consequence of my not verifying?
AMEX: Well, her card has been turned off and will stay off until we get verification.
ME: Well, then. Do what you must!
Beware of Visa Security
If you get a call saying they are with Visa or MasterCard Security, ask the jokers what bank issued the card. They may not know. Tell them you want to call the number on the card so you need to know which bank issued it. Often, they will have the credit card number, which has been stolen. In this scam, they want your CVV number, and will press you to give it, saying the need to verify that the card is in your possession. Don’t do it!
The humor: I enjoy torturing scammers.
SCAMMER: [Calling 7 a.m. on a Sunday morning which, by the way, a legitimate caller will never do.] (With a heavy Eastern European accent ) We need CVV number so be sure you have card.
ME: No, I have it. I’m looking at it. It’s right here. It really is!
SCAMMER: But need CVV number.
ME: To complete your purchases, Igor? [click]
Make some calls when your college age grandkid calls in a fix.
Believe me, if the panicked call is legit, the authorities will wait a while for you to investigate. Call the kid. Call the parents. Call someone who will know. Also, quiz your “grandchild” for stuff not generally available on social media or the Internet. Forget about birthdays, colleges, favorite teams, and best friends. All that stuff is unfortunately “out there.” When I was traveling abroad, the trap question Ellen was to ask me if I was about to go to a Turkish prison, was “OK, George, if this is really you, then tell me of your involvement in the Great Takaspusha Preserve Disaster?” Answer: it has something to do with me discovering that I was severely lactose intolerant after drinking a large milk shake before taking a long hike.
The humor: These poor scammers decided to try the Grandparent Scam on my parents. Supposedly my young adult son Mikki was being held for some infraction in Bogota, Columbia. Given that he travels abroad on business, it was not totally out of the question. But these idiot scammers had the misfortune to call when my sister Sharon was visiting my parents. She sprang into action, first calling me from her cell:
SHARON: Is Mikki in Bogota, Columbia?
ME: No, closer to Bogota, New Jersey. We just played softball around there.
Then Sharon grabbed the phone to chat with the poor, distraught “Mikki.”
SHARON: This is so sad. By the way, Mikki, how do you spell your name?
IDIOT SCAMMER: Um…M-I-C-K-E-Y?
PSE&G and the IRS don’t use email for threatening communications. They won’t call either
Just ignore this nonsense. If you are in trouble with the IRS or PSE&G you will get several communications by snail mail. They will never call to ask you to settle your bill by putting money on a Green Dot Card!
The humor: I actually got a call from PSE&G threatening to cut off my electricity if I didn’t pay my overdue energy bill:
ME: That’s just fascinating. Being PSE&G you know I have solar power. My last electric bill was actually a credit for excess solar energy you guys purchased from me. So, you owe me $32.65. I was going to take it as an offset to my next bill, but I’m happy if you put the money on a Green Dot Card.
Use “NomoRobo” to kill of those annoying robocalls
There’s a free service available from www.nomorobo.com that kills incoming telemarketer robocalls. It won’t work on a classic landline, but will for almost every other type of phone system. The phone just rings once and then kills the incoming call. And the callers get charged for a completed call. Ellen and I smile every time we get one of those calls.
Never send money if you get an email from a friend who is stuck abroad without credit cards, passport, etc.
This one is a classic. You get an email from a friend or relative describing a desperate situation: They were robbed abroad. Credit cards, cash, phone, passports are all gone. They are being held hostage by the hotel. Send money to Western Union, quick! Again, don’t do it. Back to President Reagan, trust but verify. It’s not that hard… just call someone who would know. Start with the victim; they will probably answer their phone, since the story in the email is bogus.
The humor: One Friday morning a while back, I was shocked to receive an email from my beloved Ellen saying she was stuck at a hotel in London after being robbed. I mean, I had seen her in Teaneck 90 minutes before, so she really made good time getting across the Pond. Her supposed email—sent to every one of her contacts— made no sense…she said she would be missing the flight back home, scheduled to depart on Shabbos. But, well-meaning people fell for it. Some sent money to Western Union and I got several calls offering assistance from as far away as Israel.
The humor: Beth Aaron needed Kiddush sponsors that Shabbos, so I took out a sponsorship “In Thanks for Ellen’s Safe Return from Captivity in London.”
Conclusion
As the saying goes, “A fool and his money are soon parted.” Just a little common sense and a sense of humor can keep you united with your cash. But if you are not persuaded, feel free to contribute to my “Bring My Beloved Ellen Home Fund.”
George H. Friedman, an ADR consultant and part owner of Lose-Win Situation, LLC, retired in 2013 as FINRA’s Executive Vice President and Director of Arbitration, a position he held from 1998. In his extensive career, he previously held a variety of positions of responsibility at the American Arbitration Association, most recently as Senior Vice President from 1994 to 1998. He is an Adjunct Professor of Law at Fordham Law School. Since early 2013, he has served as a member of the Board of Directors of Arbitration Resolution Services, Inc. Friedman holds a B.A. from Queens College, a J.D. from Rutgers Law School, and is a Certified Regulatory and Compliance Professional (Wharton-FINRA Institute). Follow him on Twitter @GFriedmanADR. Long-term members of Congregation Beth Aaron, he and his wife Ellen have lived in Teaneck for almost 40 years.
By George Friedman
