Grandparent scam on the rise, crooks now coming to victims’ homes to get cash

Be on the lookout for unfamiliar long lost grandchildren, folks.

The so-called “grandparent scam” is a growing form of fraud, especially in Canada. In an alert on the RBC web site, it is explained as follows: “Traditionally, fraudsters contact potential victims while posing as a family member or friend in urgent need of cash.

Often the scenario involves an accident or arrest while travelling abroad, with a request that cash be sent through a money transfer company, such as Western Union or Money Gram.

[ Related: 'Grandparent scam' resurfaces in Calgary ]

But, as the Windsor Star reports, these criminals are willing to take riskier measures in order to get their hands on cash from their victims. Instead of waiting to receive the transfer, the fraudsters appear to be willing to show up at the victims’ homes personally.

Just last week, An 89-year-old Sarnia, Ont. man recently lost more than $17,000 after he fell victim to the popular scam. Police say the caller convinced the man that he was his grandson and needed money for damages from a car crash in Montreal.

And last year, an 87 year-old woman was scammed out of $20,000 by an imposter posing as her grandson. It seems that senior citizens are the prime targets, due to their vulnerability and savings accounts.

The RCMP website marked a significant increase in scam complaints in recent years . From January to May 2011, the Canadian Anti-Fraud Centre received a total of 1,537 complaints from Canadian consumers about the grandparent scam; of those 251 are victims with a total reported dollar loss of $873,537.31. However, police estimate only five per cent of cases are reported, which means there could be several thousand victims with losses even higher than those that do come forward.

[ Related: Toronto police warn public against 'black money' scam ]

These scams are generally sophisticated schemes, sometimes with scare tactics to trick consumers into providing their personal or financial information. But this more direct approach may pose more danger to victims.

So be careful, and next time anyone you don’t recognize who is calling you for money, make sure to check with a family member first.