Family Emergency Scams
Family Emergency Scams involve fraudsters convincing their victims that a family member is in danger and requires money to get out of a bad situation. For instance, a fraudster pretends to be a grandchild in a foreign country that is in legal trouble.
Fraudsters are using social media and AI tools such as voice cloning to make these scams even more realistic. They obtain family members’ names and voiceprints from social media and use AI-powered voice cloning technology to make the fraud even more convincing.
This type of fraud often targets elderly victims who are not as familiar with newer technologies. Family Emergency Scams are classified as Relationship and Trust fraud under the Fed’s FraudClassifer model.
HOW TO IDENTIFY THIS THREAT:
Financial Institutions should always be aware of transfers such as wire transfers or cryptocurrency purchases in which account holders state funds need to be sent right away or otherwise appear agitated. These instances are red flags of potential fraud and should prompt the institution to take further steps, such as discussing the potential for fraud with the account holder to determine if entries are fraudulent.
HOW TO PROTECT AGAINST THIS THREAT:
Institutions should ensure their front-line staff are aware of scams and trained to detect potential victims. Potential victims may be escalated to management or a dedicated fraud team to investigate transfers further and discuss fraud schemes with the account holder.
Institutions should also ensure that they educate account holders about fraud scams and how to prevent them. Account holders should be aware that they should never send irrevocable funds to someone based on only phone conversations. Irrevocable funds include outgoing wire transfers, cryptocurrency, Zelle, Instant Payments, or gift cards. These transfers are very difficult, if not impossible, to reverse. Before authorizing such entries, the account holder should ensure they validate the scenario with a family member using a known phone number.
ADDITIONAL RESOURCES:
Scammers Use Fake Emergencies to Steal Your Money
Scammers Use AI to Enhance Their Family Emergency Schemes
