Cons in Canada are still preying on grandparents. Since All Consuming first alerted readers about the "grandparent scam" (also called the "grandchild scam") in summer 2008, people continue to tell us how they or their loved ones fell victim to the ploy. Many people have been duped into sending thousands of dollars by Western Union or Moneygram because they thought their grandchild had been arrested in Canada for drunk driving and needed bail money.
Attorney General Rob McKenna joined Consumerman Herb Weisbaum at the KOMO TV newsroom yesterday to issue another warning:
This scam is nationwide, folks, and shows no signs of slowing down. While most victims never recover their money, here's one place where you can report these crimes: Phonebusters, the Canadaian anti-fraud call center.
In related news, the Federal Trade Commission just announced that MoneyGram will pay $18 million to settle allegations the company and its agents helped callers defraud consumers out of $84 million. Attorneys general reached agreements with Western Union in 2005 and MoneyGram in 2008 that required the companies to fund a national consumer education program and print warnings about fraud on the forms used to send money.
Related blog posts:
"Grandparent scam" targets Washington elderly again
Grandparent scam hits more victims