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Feds charge 13 people with targeting seniors with grandparent scam

Older adults should strengthen their defenses against this dangerous scam

Updated:

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By:
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Mark Huffman
Reporter

Mark Huffman has covered consumer issues since 2004, with a special focus on protecting and empowering older adults. A former news correspondent for the Associated Press Radio Network, Westwood One, and ConsumerAffairs, Mark brings decades of journalistic experience to RetirementLiving.com. He is passionate about giving consumers a voice and helping them make informed decisions. Mark has also created educational content, including Senior Scam Alert, a video resource designed to help seniors recognize and avoid fraud. He holds a B.A. from the University of Kentucky and lives with his family in Richmond, Virginia.
grandfather with toddler

Photo by Tamara Govedarovic on Unsplash

Key Insights

  • Thirteen individuals have been charged in a transnational elder fraud scheme involving a call center in the Dominican Republic that targeted elderly Americans.
  • Authorities have identified over 400 victims, with losses exceeding $5 million and an average victim age of 84.
  • The scheme allegedly involved tricking elderly victims into giving cash to unwitting rideshare drivers or mailing money, which was then laundered through the United States and the Dominican Republic.

Federal authorities have charged thirteen people in connection with a large elder fraud operation that saw more than 400 elderly Americans with an average age of 84 lose over $5 million in a sophisticated “call center” scam orchestrated from the Dominican Republic.

According to charging documents, the alleged ringleader, Oscar Manuel Castanos Garcia, and his co-defendants used scripted calls to convince hundreds of seniors that their grandchildren or other close family members were in urgent trouble and needed money immediately. Victims, including at least 50 in Massachusetts, were told that their loved ones were hurt, in jail, or in another crisis, and directed to hand over cash to “runners” operating in the U.S.

The scammers’ tactics included sending rideshare drivers – unaware of their role in the plot – to collect packages of cash directly from victims’ homes. In other instances, the criminals allegedly directed elderly victims to ship thousands of dollars via mail or commercial carriers. 

Some victims were contacted multiple times with new fabrications, such as claims that a prior payment was insufficient or that a tragic accident involving a pregnant woman required additional funds.

Sophisticated tactics

Federal investigators allege that co-conspirators at the call center not only orchestrated multiple waves of deceitful calls, but also used U.S.-based runners and sophisticated laundering tactics to move stolen money to accounts in New York and back to the Dominican Republic.

The grandparent scam involves a scammer disguising their voice over a muffled phone line, pretending to be a grandchild in trouble and in need of quick cash. The scam has become even more dangerous, now that artificial intelligence can clone voices.