Federal investigators in Massachusetts have charged 13 people, nine of whom are now in custody, in connection with a sprawling “grandparent scam” that took millions of dollars from elderly victims.
Authorities say the operation impacted around 400 victims. The average victim was aged 84 years old. Total losses from the scam exceeded $5 million.
“Their goal was to trick our grandparents … into handing over their life savings under false pretenses. And they succeeded in stealing millions,” U.S. Attorney for Massachusetts Leah Foley told CBS News.
How the scam worked, and its devastating toll
CBS News reports that the scam operated out of call centers in the Dominican Republic, led by alleged ringleader Oscar Manuel Castanos Garcia.
Victims would receive a call from someone posing as their grandchild, who opened with an urgent emotional plea, such as, “I’ve been in an accident,” or, “I need bail money.” Once the victim was hooked, a so-called “closer” pretending to be a lawyer took over, pressuring them to hand over thousands in cash.
nce the victim agreed, scammers then dispatched unwitting Uber drivers to collect the money or even drive the elder to a bank to withdraw it. The cash would then be transferred to another person who allegedly laundered it to the suspects. Uber’s Global Security team eventually flagged the suspicious activity to the FBI, helping investigators piece the operation together.
Officials said many victims handed over tens of thousands of dollars — sometimes $10,000 or more in a single payout. For seniors living on fixed incomes, that sum can represent years of careful savings or the only liquid cash they have available.
The Justice Department noted that many older Americans are too ashamed to report being duped, meaning the true financial toll may be far higher than the $5 million documented so far. Prosecutors warn that most of these victims will never see their money again. Currently, four suspects remain at large.