🚨 $5 Million Grandparent Scam Organization Busted: Over 400 Seniors Defrauded

WEEKLY SCAM ALERTS
Week of August 18, 2025

• Caregiver Arrest Highlights Growing Elder Fraud Exploitation

• FTC Reports Sharp Rise in Impersonation Scams Targeting Seniors

SENIOR SCAM NEWS
🚨 $5 Million Grandparent Scam Organization Busted

If you’ve ever gotten a sudden call from someone claiming to be your grandchild in trouble, your heart probably skipped a beat. You’d want to do anything to help, right? Sadly, that exact instinct is what scammers across the world are exploiting — and this week’s story reveals just how large, sophisticated, and devastating these fraud rings can be.

Federal prosecutors in Massachusetts recently unsealed charges against 13 people accused of running a transnational elder fraud ring that stole more than $5 million from seniors across Massachusetts, New Hampshire, Maine, and beyond. The details read like something out of a crime novel, but tragically, it was very real for more than 400 elderly victims who lost their life savings.

How the Scam Worked

According to federal court documents, the operation was run out of call centers in the Dominican Republic. The group followed a precise playbook, with different roles assigned to carry out the scam, and with call scripts, such as this one:

This organization including the following roles:

• “Openers” – These were the first callers. They pretended to be a grandchild in trouble — arrested, in a car accident, or in desperate need of bail money. Their goal was to get victims panicked and emotionally hooked.

• “Closers” – Once the victim was on edge, another scammer would step in, claiming to be a lawyer, police officer, or bail agent. They explained what “had to be paid” and gave instructions for sending money.

• “Runners” – These individuals physically collected the cash. Sometimes they were members of the scam ring, but often they tricked rideshare drivers into acting as couriers, picking up envelopes of money from seniors and delivering them to the criminals.

Scammers didn’t stop after the first payout. In many cases, they called back multiple times, telling new lies to keep squeezing victims — saying there was a miscarriage, a death, or new legal complications that required more money.

Inside the call centers, employees tracked their daily earnings on whiteboards, noting how much each opener and closer had extracted from their victims.

Who Was Behind It

Federal prosecutors identified Oscar Manuel Castaños Garcia as the alleged mastermind. According to the FBI, Garcia and his team ran the operation like a business: recruiting callers, directing the runners, and referring to new potential victims as “fresh meat.”

The indictment lists 13 defendants in total, including:

• Garcia himself, accused of orchestrating the entire scheme.

• Joel Jose Cruz Rodriguez, Edward Jose Puello Garcia, Joan Manuel Mathilda Leon, and others who worked in the call centers.

• Associates in the U.S. who helped launder money and move stolen funds.

At least nine of the suspects have already been arrested, while others remain fugitives — some in the U.S., others abroad. These criminals were brazenly flaunting their stolen money in photos.

The Devastating Impact

This wasn’t just a matter of stolen money. Prosecutors described the human toll vividly:

• Retirements delayed – Victims who had carefully saved for years suddenly had nothing left.

• Inheritances lost – Money meant for children and grandchildren vanished into scammer’s pockets.

• Lives turned upside down – Victims not only lost money but felt ashamed, guilty, and broken.

One FBI agent said it plainly: “Retirements delayed, inheritances lost, lives turned upside down.”

The scheme hit Massachusetts seniors especially hard, but cases stretched across 46 states. For many, the calls came at the worst possible times — when they were home alone, vulnerable, and desperate to protect family.

Law Enforcement’s Response

The takedown was the result of cooperation between multiple agencies: the FBI’s Boston Division, the U.S. Attorney’s Office in Massachusetts, Homeland Security Investigations, and law enforcement partners in the Dominican Republic.

Authorities stressed that the arrests don’t undo the losses, but they do stop these criminals from harming anyone else. Prosecutors also made clear: these scams aren’t random. They’re organized crime rings, just like drug cartels, but focused on stealing money instead of selling contraband.

Why Seniors Were Targeted

The affidavit highlights why older adults are especially vulnerable:

• Seniors are more likely to answer unknown phone calls.

• Many live alone, making them easy to isolate emotionally.

• Strong family bonds make “grandparent scams” highly effective.

• Seniors may not be as familiar with caller ID spoofing or rideshare manipulation.

The fraudsters knew this — and deliberately focused their energy on the elderly.

Protecting Yourself and Your Loved Ones

This case is a chilling reminder that no one is immune. Here’s what you can do to protect yourself:

1. Hang up immediately if someone calls claiming to be a grandchild in distress.

2. Verify the story by calling your grandchild or another family member directly.

3. Never send cash to someone you don’t know personally.

4. Don’t keep it secret – real family emergencies never come with instructions to hide them.

5. Report the call to law enforcement and the FTC at ReportFraud.ftc.gov.

And most importantly: Talk about these scams with family and friends. The more people are aware, the harder it becomes for scammers to succeed.

Why We Must Keep Speaking Up

The Massachusetts case is one of the largest grandparent scam takedowns in history — but it’s not the last. Prosecutors said this type of fraud is spreading, with new call centers popping up overseas.

That’s why awareness matters. Every time you share this information with someone else, you’re building a shield around your community.

Your Voice Could Be the Turning Point

If you or someone you love is targeted by a scam, don’t stay silent. Report it immediately to law enforcement and the FTC at ReportFraud.ftc.gov. By speaking up, you not only protect yourself — you also help stop scammers from finding their next victim.

Together, we can shine a light on these crimes and keep our seniors safe.

📢 What To Do If You Suspect Financial Abuse

If you're over 60—or helping someone who is—take action immediately if you notice unusual withdrawals, transfers, or changes in property ownership:

• 📞 Call the National Elder Fraud Hotline:
  1-833-FRAUD-11 (1-833-372-8311)

• 💻 Report to the FBI’s Internet Crime Complaint Center:
  www.ic3.gov

• 🚔 Contact local police or adult protective services

What to Include in Your Report:

✅ Names and relationships of anyone with financial access
✅ Dates and amounts of suspicious transactions
✅ Copies of deeds, trust agreements, or account statements
✅ Any written or digital communication related to the transfers