How Scammers are Using Friends and Family to Steal Your Money
Scammers pose as relatives or friends in urgent need of money. Learn how to recognize these scams, protect your loved ones, and what to do if you're targeted. Stay informed and keep your financial information safe.
Imagine you get a call from your family member or friend saying that they need help getting out of trouble. They ask you to send money as soon as possible because they’ve been in an accident, were arrested, or stranded in a foreign country. Of course you want to help, but what if it’s not really your family member or friend calling? It may be a scammer trying to steal your information through something called a “Family Emergency Scam”.
How does this scam work?
In a Family Emergency Scam, a scammer will try to manipulate you into thinking they’re your family member or friend, or a lawyer, a doctor, a police officer, or a government official calling on their behalf. They will ask you to send the money quickly and secretly, often through wire transfers, gift cards, or cryptocurrency. Sometimes the “relative” or “friend” will ask you to keep the incident a secret because they will be embarrassed if other friends or family members found out.
How does the scammer know information about you?
Phone calls may be made at random until someone answers, or scammers may be finding information like your phone number online. If a scammer knows your name and information about your family members, it’s more likely that they are finding out information through the internet or your social media accounts. They’ll use social media to gather information like who your family and friends are, making it easier to convince you that someone you know is in trouble.
How common really are these scams?
According to the Federal Trade Commission (FTC), imposter scams were the most reported scam in 2023 with a total loss of $2.7 billon. This number not only includes Family Emergency Scams, but schemes where fraudsters impersonate businesses and government employees to steal your money. Keep in mind that the actual number of imposter scams may be much higher — as many people may not report them out of embarrassment or fear.
How can you protect yourself, your family, and your friends?
The best way to protect yourself is to be aware of the warning signs and verify the identity and situation of the caller before sending any money. If you think you’re involved in a Family Emergency Scam, follow these steps:
Take a breath and slow down.
Scammers will try to create a sense of urgency and panic to prevent you from thinking clearly or checking the facts. Take your time and ask questions to verify who you are really talking to. Try to talk with someone else the family member or friend is close with to corroborate the situation.
Reach out to your family member or friend directly.
Be skeptical of any call, text, email, or social media message that claims to be from a relative or a friend in an emergency and asks for money. If you’re not sure the person contacting you is really who they say they are, use a phone number or email address that you know to be correct, not the one the person contacted you from.
Even if someone claims to be from a business or government organization, use a phone number you know to be legitimate and do not click on any links or call the phone number provided in an unexpected communication.
Never send money to an unknown person.
An “unknown person” includes someone claiming to be a government official, business, or person speaking on someone’s behalf that you know. Be sure to also check the contact information of the person reaching out to you.
Do not use any payment method that is difficult to trace or recover, like wire transfers, gift cards, mobile payment apps, or cryptocurrency. Scammers prefer these methods because they are fast, anonymous, and irreversible. Once you send the money, you likely won’t get it back. Keep in mind government officials and businesses would not ask for money through these methods.
Create a code word for the future.
In case of an emergency in the future, create a code word with your family or friends to verify their identity. Keep the code word private and make it something that a scammer could not easily guess or find online.
Don't be embarrassed.
If you’re afraid you’ve been involved in scam, don’t wait to contact the authorities. Reporting these scams can help law enforcement agencies track down and stop the scammers and warn other potential victims.
If you've sent money, immediately call the money transfer service you used, and your financial institution to report the fraud. You should also report any suspicious calls, texts, emails, or social media messages to the FTC at ReportFraud.ftc.gov. You can also contact your local police department or your state attorney general's office.
By being cautious and knowing the steps to take if you encounter a Family Emergency Scam, you can not only protect yourself but also your friends and family. Remember to check your accounts often and report any suspicious activity immediately. Visit our Fraud Center for more advice on recent scams and how you can keep your personal and financial information safe.