Federal prosecutors have unveiled charges against 16 individuals allegedly involved in a widespread “grandparent scam” targeting older Americans across the Northeast. The indictment reveals a sophisticated network of call centers operating in the Dominican Republic, preying on the trust and affection of elderly individuals in New Jersey, New York, Pennsylvania, and Massachusetts. Perpetrators posed as relatives in distress, manipulating victims into sending money under pretenses.

The Grandparent Scam

According to U.S. Attorney Philip R. Sellinger, scammers employed emotional manipulation tactics, such as impersonating distressed grandchildren, to deceive seniors into believing their loved ones were in urgent need. Leveraging familial bonds, perpetrators exploited victims’ goodwill and affection, compelling them to comply with fraudulent demands.

Prosecution and Charges

The indictment outlines a five-year scheme orchestrated by the accused, involving the use of voice-over-internet protocol services to conceal the origin of calls. Perpetrators, categorized as “openers” and “closers,” systematically targeted victims, fabricating emergencies and legal predicaments to extract money. The indictment identifies 11 individuals from the Dominican Republic charged with various offenses, including mail and wire fraud conspiracy, money laundering, and wire fraud conspiracy. Additionally, five New York residents face charges of wire fraud conspiracy. Each charge carries a maximum penalty of up to 20 years in prison, accompanied by substantial fines. The indictment, filed in January, was unsealed this week as U.S. authorities pursued extradition proceedings against defendants based in the Dominican Republic.

Tips to Prevent Financial Exploitation

As elder fraud continues to escalate, financial institutions and advocacy groups emphasize the importance of proactive measures to protect seniors from exploitation. Michael Jabbara, Visa’s vice president and global head of fraud services, underscores the significance of ongoing vigilance and education to mitigate risks. Key preventive measures include:

• Share with Care: Limit the dissemination of personal information online and adjust social media privacy settings to restrict access. Exercise caution when accepting connection requests from unfamiliar individuals.
• Beware of Emergencies: Remain vigilant against fraudulent appeals for financial assistance, especially in urgent or distressing situations. Verify the authenticity of requests through alternate communication channels before responding.
• Verify Authenticity: When in doubt, independently verify the legitimacy of requests or communications by contacting the purported sender directly. Refrain from engaging with suspicious messages or calls and report fraudulent activity promptly.
• Report Suspected Fraud: If you suspect fraudulent activity or have fallen victim to a scam, report the incident to appropriate authorities, such as the FBI’s Internet Crime Complaint Center (IC3), to facilitate investigations and prevent further harm.

By promoting awareness and adopting proactive strategies, individuals can safeguard elderly loved ones and communities against financial exploitation, fostering resilience in the face of evolving fraud schemes.