"Grandparent Scam" What You Need To Know

In a CBS News investigation, an admitted con artist has revealed how a scam targets and steals money from grandparents.

The scam begins with something most grandparents don't get enough of -- a phone call from a grandchild -- or so the caller says. But it almost always ends with a desperate plea for money, and the criminal CBS News met used to be on the other end of the line.

Shackled, and in federal custody, the 31-year-old conman is awaiting sentencing in California for his role in what's known as the "grandparent scam."

He agreed to let CBS News in on how he did it, but only if we wouldn't reveal his name.

The former scammer told CBS News' Carter Evans, "You can make $10,000 sometimes in a day if you do it properly."

Part of elaborate scheme run out of Canada. He would call senior citizens in the U.S., impersonating a grandchild in distress, begging for cash.
 
Asked how a typical call would go, he said, "You just say, 'Hey, how are you, hi grandma, hi grandpa... I'm in a little bit of trouble right now. If I tell you, just keep it between us, I'm on vacation, but I got into a little accident, and I was arrested for a DUI.' You tell them, 'Things got out of control, and I need you to send me the money."

So how many people would fall for it? "One out of 50 maybe," he said.

It's estimated senior citizens are robbed of roughly $3 billion a year in financial scams. Phone scams are often run outside the U.S. Con artists usually buy their victims' personal information online, including age and income.

"We target people over the age of 65, mainly, because they're more gullible," the former scammer said. "They're at home. They're more accessible. Once you get them emotionally involved, then they'll do anything for you, basically."

Doug Shadel of AARP said, "We've had doctors and lawyers fall for this. It doesn't matter what your educational level is because it triggers something emotional, it causes you to act."

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