What Is the Granny Scam - How to Avoid it

This is a post by David Bakke, a writer for the Money Crashers personal finance blog. Money Crashers is a financial resource site and home of the top personal finance blogs list.

As soon as you learn about the latest scam and how to avoid it, another one is waiting just around the corner. Criminals are always coming up with new ways to try to steal your money. Though it's tough to spot every financial scam (including common Craigslist scams), it's important to watch out for yourself and for your older relatives, and keep yourself educated as best you can. The latest con, known as "the granny scam," specifically targets the unsuspecting elderly.

What Is the "Granny Scam?"

The granny scam targets older people, mostly grandparents, in an attempt to defraud them of their money. Instigators usually telephone their marks, claiming to be a grandson or other relative. They may claim one of a variety of things:

• They were just arrested
• They were in a car accident
• They were involved in some other serious medical emergency

Many times, crooks will claim that they've gotten into trouble abroad and are afraid to call their parents, asking to keep the request a secret. Next, the criminals coerce their prey into wiring them money to help them out of their situation. By the time the grandparent follows up, they learn that not only are their grandchildren safe and sound but also that their money is gone. To add insult to injury, some successful con artists will even call back after the scam works and double dip for more money. Some scammers are even using social networking sites to acquire information. It's not too difficult to get names, photos, and personal information, including the names of family members. Just as in instances of identity theft, criminals will use this data to their benefit, making their fraudulent claims sound credible.

How to Avoid Becoming a Victim

You don't need to be a senior citizen to be in danger. The swindlers are clever and can trick even the most vigilant people out there. But even if you think you're safe, make sure that your older relatives are informed. When a desperate call comes in, follow these steps:

1. Remain calm. A seasoned criminal will act frantic, trying to lead the grandparents into joining the panic. Swept up at the moment and worried for their young relative's well-being, a deceived victim will send the money without considering whether the claim is legitimate. It is crucial to remain calm, ignore the pleas for secrecy, and contact another family member as soon as possible to ensure that the emergency is real.
2. Ask specific questions. Now that you're calm enough to take control of the conversation, verify the identity of the caller by asking questions that only your grandchild or relative would know the answer to. Use obscure facts from that person’s life, such as the name of a family pet or where they went to grade school.
3. Get a contact number. Lastly, tell the person on the line that you will call them back. Simply ask for a contact number. This innocuous request is likely to throw a con artist off the normal script, usually ending the fraud attempt.

Final Thoughts

Criminals will try just about anything to separate you from your money, and the "granny scam" is one of many ways that these people target the elderly. If someone causes panic and attempts to reach into your pockets in the name of a family emergency, check out their story in full. Be 100% certain that you are actually dealing with one of your relatives before sending funds to anyone. Do you have additional tips for avoiding the granny scam? What other scams exist that target the elderly?

Related page:
Scams

10 Happy Ways to live life

“Do not take life too seriously. You will never get out of it alive.” 
― Elbert Hubbard

“Happiness is not a goal...it's a by-product of a life well-lived.” 
― Eleanor Roosevelt

Life is what you make out of it. When you think life is worth living, it is. When you think it is not, it is also true. Why not change your mindset and live a happy life?  Here are ten suggestions to uplift your mood and be merry every day:

1.       Enjoy the journey of life: You set goals and you are determined to reach for them. It is fine.  Do not celebrate only when you have realized your goals. The most important thing is to enjoy the journey while you are on your way.   Take delight in everything you do every day. Look at things optimistically, don’t worry, and be happy.

2.       Be in a holiday mood:  Be in the present, focus on what you do, be relaxed, and pay attention to the task at hand. Switch your daily mood to a holiday mood.

3.       Think positively: The most effective way to be happy is to think of happy thoughts and act cheerfully. Get up early and thanks God that you are given a new day to live life the way you want it to be. 

4.       Be physically active:  A happy life is about movement because inaction kills. You will be more energetic when you exercise every day. When you can walk, don’t use the lift or drive around. An active lifestyle is a healthy way to get more out of life.

5.       Simplify: The way to live life happily every day is to have few commitments and a shorter to-do list. Do only what is essential and be less stressful.

6.       Attack problems: There will be problems and they are not bad things. Problems jolt your mind and you will be creative and resourceful to overcome obstacles in life. Life would  be boring if there were no challenges  

7.       Take action: Get things done and be responsive. Happiness is to do what you need to do and do it now. You may know what to do to be happy but are you doing it every day?

8.       Explore: Learn new things, read books, be thirsty for new knowledge, exercise the mind, and stay mentally alert.

9.       Be kind to yourself: Don’t be angry, jealous, or resentful because you cannot have something that your neighbour has and you want o have and it is beyond your reach. Get peace of mind, appreciate what you have, and be contented. Don’t compare, live your own life.  A happy life is to have less, want less, and be debt-free.

10.   Go after your dreams: A happy life is going after what you are passionate about. Doing things that are truly meaningful to you. Wake up and get up every day enthusiastically because it is another brand new day to do what you like the most.  

Change your thinking and change the way you look at life. Think positively, act confidently and be happy. 

Life naturally evolves in the direction of happiness. We must constantly ask ourselves if what we are doing is going to make us, and those around us, happy. Because happiness is the ultimate goals.  It is the goal of all other goals. ~ Deepak Chopra

Top 3 Posts in October 2011

1. 7 Effective Ways to Work Productively and Grow

Without continual growth and progress, such words as improvement, achievement, and success have no meaning. ~Benjamin Franklin

Strength and growth come only through continuous effort and struggle. ~Napoleon Hill

All growth depends upon activity. There is no development physically or intellectually without effort, and effort means work. ~Calvin Coolidge

2. 7 Effective Ways to Determine the Worth of a Stock

You have to look beyond the annual financial report of a company to decide the worth of a company‘s shares. The people behind the scene are pivotal in deciding the fate of an establishment. However, the people and the figures will give you a fair view of a company:


3. 10 Top Soft Skills for Career Success

According to Wikipedia Soft skills is a sociological term relating to a person's ”EQ” (Emotional Intelligence Quotient), the cluster of personality traits, social graces, communication, language, personal habits, friendliness, and optimism that characterize relationships with other people. Soft skills complement hard skills (part of a person's IQ), which are the occupational requirements of a job and many other activities.

Your technical skills will not guarantee success in the workplace. The most important things are your attitude, how you interact with others, the way you get things done and how you react to events. What are the most important soft skills? Check out the following:

5 Effective Ways for Baby Boomers to Protect Their Wealth

Most baby boomers by now have retired. They are now living and relying on their wealth which they have accumulated over the working years. Baby boomers still have a long way to go and financial freedom is definitely featured prominently in their mind. It is essential for baby boomers to preserve their wealth as long as possible. Here are five important things you should consider:


1. Safety: Where do you keep your money now? Make sure that it is safe and your capital is well protected and secured.

 2. Yield: Is your investment providing a stream of passive income for you and is it tax-free? Your wealth needs to provide an ongoing income so that it will last you as long as you live in your golden years.

3. Liquidity: Can you withdraw your money at short notice. Your wealth needs to be fluid because unexpected expenses such as getting medical attention is an emergency situation.

4. The rule of 100: This is a very simple rule. Take 100 and minus your age, say, 65, you get 35. It means you should only expose 35% of your wealth to risky investment. 65% of your wealth should be kept in fixed deposits, bond funds, retirement accounts or insurance.

5. Avoid greed and scams: Do not be gullible and believe in quick, easy and high returns. There is no free lunch. It is also important not to fall into a scam like Granny scam.


Be vigilant and be happy and carefree in your senior years.

Are You Employing the Right People?

In any business, skills are important but attitude will play a critical role because the image of the company is either strengthened or weakened by the morale of the workers.  Don’t allow a few bad apples to spoil the high spirits of other workers.   

·         Don’t employ in a rush: Just because you can’t get enough staff, especially when you open a new business, you relax the employment requirements to fill the vacancies. It is going to do more harm in the long run.  The staff may be experienced workers, but they have a wrong working attitude. Attitude is rooted in a person’s thinking which influences his or her behavior. You cannot easily change people when it is already their habits or character.

·         Vet their background: It is important to check their employment history. Find out more about the person’s attitude.   More often than not, employers want to get rid of workers with the wrong attitude. They are a pain in the neck.  This is also the reason why they have to leave and are looking for a job at your place.

Here are some of the attitudes to watch out:

There is little difference in people, but that little difference makes a big difference. The little difference is attitude. The big difference is whether it is positive or negative. ~W. Clement Stone

1.       Do they just work for money: They don’t care whether they can fit into the job, they just want money.  They are likely to be square pegs in round holes. Life at work will be frustrating for them.

2.       Are they responsible: Do they take the job seriously? Is safety their utmost concern? Do they blame others when things go wrong? Do they tell you the truth or hide the real story?

3.       Do they have the interest of the company at heart: Are they proud to be employed? Do they share the values of the company?  Do they appreciate the benefits extended to them? What do they tell others about the company that they are working for? 

4.       Are they passionate about what they do: Are they enthusiastic at work? Do they take pride in what they do? Do they care about the quality of their work? Do they know that their career and reputation are at stake? 

 Ability is what you're capable of doing. Motivation determines what you do. Attitude determines how well you do it. ~Raymond Chandler

5.       Do they believe in self-development: Positive people are proud of their skills and they are interested to learn and know more so that they are competent in what they do. Their quest for knowledge is a positive attitude that will be beneficial throughout their lives.

6.       Do they accept changes easily:  Are they adamant in the way they do things and reluctant to make changes for the better? Do they accept new ideas and open to constructive criticism?

7.       What do they think of customers: Do they treat the customer like gold? Do they know that customers are the reasons why they are employed?

It is not easy to detect the true character of people. Therefore, it is worthwhile to probe and find out more instead of employing workers with a poor attitude.

Attitude is everything. ~ Diane von Furstenberg  

7 Effective Ways to Work with Your Boss

There are 7 positive ways to work smart with your boss. When your boss is impressed, it will be easy for you to get what you want: 

1.       Trust: Are you reliable? Are you able to honor your promises consistently, accurately, and timely? The most important thing is to be trusted by your boss.

2.       Competent: Do you possess the knowledge and skills to inspire the trust and confidence of your boss? You must continuously update your knowledge to stay ahead. At the same time Identify and acquire other skills essential to do your job well. 

3.       Substantiate: When you are in finance, you are able to analysis and interpret the figures and report the financial situation accurately and suggest future action to be taken and allow the company to stay profitable. When you are in marketing, you are able to recommend products, packaging, and marketing materials in order to be ahead in the marketplace. The key is that you must be able to show the boss what you can do. This is the most effective way to your career success. 

4.       Empathy: Talk to your boss clearly and precisely. Get to know the objectives of your boss and discuss issues intelligently on the same wavelength. 

5.       Responsive: Are you able to respond quickly to what your boss has asked of you? Do you take immediate action and do what is needed to be done?  When it is time to act, do so immediately.

6.       Positive attitude: Be willing to accept criticism with an open mind. Be flexible and adaptable.

7.       Initiative: Be proactive and get things done without being told by the boss. Provide solutions to problems and keep the boss posted about the situation.       

To work smart is to update your boss on a regular basis about your work so that he or she is always on top of things. 

10 Ways to Live Less and Simple and Be Free, Healthy and Happy

The ability to simplify means to eliminate the unnecessary so that the necessary may speak.  ~Hans Hofmann

Simplicity is the ultimate sophistication.  ~Leonardo DaVinci

Can you live less and simple in life? The quality of life is not having more and be complicated. A free and happy life is about simplicity and less is more.

1.      Less clutter: Is your house full of things and you are restless because there is no breathing room? Clear all the unwanted things at home. Be simple, spacious, and find peace and calmness at home.

Have nothing in your houses that you do not know to be useful or believe to be beautiful.  ~William Morris

2.      Want less: Be free financially. When you are free from wanting more you are free from debt. Happiness is about contentment and appreciating what you have.

You have succeeded in life when all you really want is only what you really need.  ~Vernon Howard

3.      Commit less: Spend time on doing things that you truly value. Do not over-commit and be overwhelmed.

Besides the noble art of getting things done, there is the noble art of leaving things undone.  The wisdom of life consists in the elimination of non-essentials.  ~Lin Yutang

4.      Worry less: When you spend precious time worrying about the future, you will have less time to be happy and enjoy life here and now. The present moment is the only time you can feel, touch, smell, listen and enjoy. 

5.      Do less: Do less and be less stressed every day. Just ask yourself: What is the single most important thing that I should do today to bring me the desired results?  

   

6.      Hurry less: Be in a holiday mood so that you will be more relaxed and calm to live your daily life. To be in the present is to enjoy what you do.

Nature does not hurry, yet everything is accomplished. ~ Lao Tzu

7.      Simple healthy habits: Get away from the TV set, get out and enjoy the outdoors. Be with nature, fresh air, and sunshine, no club membership fee or gym equipment are required. Stay healthy and fit in a natural and effective way. Sleep early and get up early.

8.      Simple eating: When you eat out less especially at fast food outlets, you are actually consuming less fat, less sugar, and less salt. What you get is a healthier and longer life.  A healthy eating habit is about eating less meat and more fruits, vegetables and drinking plenty of water throughout the day.

9.      Talk less: When you talk less, you are listening more and when you listen more, you learn more from others and understand them much better. Others will appreciate you because you listen.

10.  Expect less: You get fewer disappointments with less expectation. Nobody can predict the outcome of events in our life and you can’t control the behavior of others. Do the best you can with what you have and enjoy the process of doing it and let things be. You do what is right for others and don’t expect to get something in return.  When you do good, do you do it for the sake of doing it or you want something in return? 

 Reduce the complexity of life by eliminating the needless wants of life, and the labors of life reduce themselves.  ~Edwin Way Teale