A transnational fraud operation, known as the “grandparent scam,” was dismantled after causing losses of over R$26.9 million to approximately 400 elderly individuals in the United States, with an average age of 84. Thirteen people were indicted for operating a sophisticated call center in the Dominican Republic, from where they deceived victims, primarily in Massachusetts, by posing as grandchildren or other relatives in emergency situations. The calls, made in English, manipulated the elderly into sending money, which was laundered and transferred back to the Caribbean country. The gang used ride-share drivers and courier services to collect the funds, often returning to extort the same victims. US and Dominican authorities collaborated in the investigation, which revealed a highly organized and technologically advanced scheme.
The criminal network operated with precision, exploiting the emotional vulnerability of the elderly. Victims were convinced to make urgent payments for supposed family emergencies, such as accidents or arrests. The operation, which generated millions in profits, shocked authorities due to its audacity and organization.
- How the scheme worked: Scammers started with a call posing as a grandchild in distress, followed by another posing as a lawyer requesting money for fees or bail.
- Collection methods: Cash packages were picked up by ride-share drivers or sent via mail to specific addresses.
- Money laundering: Funds were transferred to the Dominican Republic through a network of accomplices in the US.
- Victim profile: Elderly individuals, averaging 84 years old, were easy targets due to their trust and limited tech familiarity.
Scam operation tactics
The Dominican scammers used sophisticated techniques to deceive their victims. Calls were made using spoofing technology, masking their origin to appear as if they came from the US. One member, called an “opener,” initiated contact by pretending to be a relative in trouble, such as a grandchild involved in a car accident or arrested. Then, a “closer” took over, posing as a lawyer, police officer, or judicial official to convince the victim to pay large sums.
Psychological manipulation was central to the scheme. The scammers created a sense of urgency, exploiting the elderly’s love and concern for their families. In many cases, after the first payment, victims received additional calls demanding more money with new pretexts. The gang relied on a network of couriers in the US who collected cash directly from victims’ homes or at designated locations, often using fake names and fraudulent receipts.
- Spoofing technology: Made calls appear local, increasing the scam’s credibility.
- Role division: “Openers” initiated contact, while “closers” finalized the extortion.
- Courier use: Ride-share drivers or delivery workers collected cash payments.
- Repeated targeting: Scammers called victims again after initial payments to extract more funds.
Transnational scam structure
The criminal operation was highly structured, with clear task divisions among members. In the Dominican Republic, the call center operated like a business, with computers, phones, and teams working full-time. The gang relied on “dispatchers” who coordinated couriers in the US, responsible for collecting money and sending it abroad. Money laundering was a key component, with profits moved through bank transfers, cryptocurrencies, and other methods to evade tracking.
Authorities estimate the group operated for at least three years, targeting elderly individuals in states like New York, New Jersey, Pennsylvania, and Massachusetts. Collaboration between the FBI, Homeland Security Investigations (HSI), and Dominican police was crucial in dismantling the network. During raids, authorities seized computers, cell phones, weapons, vehicles, and about $400,000 in cash, highlighting the operation’s scale.
- Illegal call centers: Operated in cities like Santiago, Santo Domingo, and Puerto Plata.
- Sophisticated laundering: Use of cryptocurrencies and international transfers to hide profits.
- Seizures: Electronics, luxury vehicles, and cash were confiscated.
Impact on victims
The elderly victims suffered not only financial losses but also emotional trauma. Many handed over life savings, believing they were helping family members in critical situations. Individual losses ranged from $10,000 to $50,000, with some victims targeted multiple times. The repeated contacts by scammers worsened the impact, exploiting the victims’ trust and vulnerability.
The average age of 84 reflects the deliberate targeting of vulnerable individuals with limited ability to identify fraud or seek help. Consumer protection organizations, such as the Federal Trade Commission (FTC), warn that the elderly are frequent targets due to their trust in phone calls and lower familiarity with digital scams.
- Individual losses: Ranged from $10,000 to $50,000 per victim.
- Emotional trauma: Victims faced stress and fear after believing in fake emergencies.
- Vulnerable targets: Chosen for their limited tech knowledge.
Authorities’ response
The investigation, dubbed Operation Ciudad de Caballeros, involved months of cooperation between US and Dominican authorities. Simultaneous raids in Santiago de Caballeros and other cities led to 60 arrests in the Dominican Republic and 50 in the US, primarily in New York. The 13 indicted individuals face charges of mail fraud, wire fraud, and money laundering, with potential penalties of up to 20 years in prison per offense.
International collaboration was highlighted as essential to combating transnational crime. The FBI and HSI continue to investigate possible extensions of the scheme, while the Dominican Prosecutor’s Office seeks to identify additional accomplices. The FTC advises victims of similar scams to report to the Commission or the FBI’s Internet Crime Complaint Center.
- Operation Ciudad de Caballeros: Raids on illegal call centers in the Dominican Republic.
- Arrests: 60 detained in the Caribbean and 50 in the US, mainly in New York.
- Potential penalties: Up to 20 years for fraud and 20 more for money laundering.
Preventing similar scams
The spread of scams like the “grandparent scam” has prompted authorities to intensify awareness campaigns. The FTC and other organizations recommend caution with unexpected calls, especially those creating urgency or requesting personal information. Verifying directly with family members before making payments is a simple yet effective measure.
The elderly are encouraged to discuss suspicious calls with trusted individuals and avoid transfers via services like MoneyGram, Western Union, or cryptocurrencies. Reporting attempted scams, even if no loss occurs, helps authorities track and dismantle criminal networks.
- Family verification: Call the supposed relative in distress before sending money.
- Avoid urgent payments: Be wary of requests for immediate transfers.
- Reporting: File complaints with the FTC or FBI’s Internet Crime Complaint Center.
- Awareness: Educate the elderly about common phone scams.
International cooperation against cybercrime
The dismantling of the gang reflects the growing challenge of transnational cybercrime. Collaboration between countries is vital to tackle networks operating across borders, using advanced technology and social engineering tactics. The Dominican Prosecutor General highlighted the operation as a milestone in combating electronic fraud, while the FBI emphasized the need for ongoing vigilance.
The dismantled network operated in multiple Dominican cities, including Santiago, Santo Domingo, La Vega, and Puerto Plata, underscoring the issue’s scale. Authorities seized electronics, weapons, and luxury vehicles, indicating profits were reinvested in high-value assets. The investigation continues to identify potential new targets and extensions of the scheme.
- Global collaboration: FBI, HSI, and Dominican police worked together.
- Involved cities: Call centers operated in various Dominican regions.
- Seizures: Electronics, weapons, and $400,000 in cash were confiscated.
