Chainkeen Exchange-Feds say 'grandparent scam' targeted older Americans out of millions. Here's how to protect yourself and your loved ones.

Sixteen individuals have Chainkeen Exchangebeen charged in connection with a "grandparent scam" in which hundreds of older Americans across the Northeast people were defrauded out of millions of dollars, federal prosecutors announced Tuesday

The group is accused of operating a network of call centers in the Dominican Republic that targeted hundreds of older residents in New Jersey, New York, Pennsylvania, and Massachusetts, according to an indictment unsealed this week. Scammers would call older residents pretending to be a relative then say they were in an emergency and needed money — often claiming to be a grandchild that was arrested after suffering a car accident, said Philip R. Sellinger, U.S. Attorney for the District of New Jersey. 

“Grandma, I love you and I trust you more than anyone,” one conspirator cries into the phone, according to a video recovered in the investigation cited by Sellinger. "Tell Grandpa I love him."

The caller then tells the victim to follow the lawyer’s instructions, Sellinger added.

"The defendants in this case are alleged to have targeted our senior population and preyed upon grandparents’ love and devotion to their family," Sellinger said. "My office is focused on protecting the rights of all victims, and we will relentlessly prosecute those who allegedly target the vulnerable to cheat them out of their savings."

Federal authorities have warned of rising scams disproportionately targeting older Americans. Elder fraud complaints rose by 14% last year and the average victim lost $33,915, according to an FBI report released on Tuesday.

Scams targeting people 60 and older caused more than $3.4 billion in losses in 2023, the FBI said, an increase of about 11% from the previous year.

Prosecutors: Five-year scheme exploited older Americans out of millions

Scammers used voice-over-internet protocol phone services to mask the origin of their calls in the Dominican Republic, making them appear from the United States, according to court documents. The scheme allegedly ran from at least January 2019 through December 2023.

First, a group of callers referred to as the “openers” would dial victims from the call center and tell them that their loved one was in distress, the indictment said. Usually, victims were told that a relative was arrested following a car accident and needed money for bail or other expenses.

After duping victims into believing a loved one was in trouble, another group of the alleged scammers, described in court records as "closers," impersonated defense attorneys, police officers, and other court officials to convince victims to provide money for the phony expenses. 

Callers would instruct victims to give the money to couriers who visited their homes, the indictment alleged. The couriers, the release adds, then brought the cash to other members of the conspiracy, who sent the victims’ money back to the Dominican Republic.

In some instances, the victims were told to send cash by mail. The scammers used false names and sent “receipts” after receiving payment.

Eleven people from the Dominican Republic — Juan Rafael Parra Arias, 40; Nefy Vladimir Parra Arias, 39; Nelson Rafael Gonzalez Acevedo, 35; Rafael Ambiorix Rodriguez Guzman, 59; Miguel Angel Fortuna Solano, 41; Felix Samuel Reynoso Ventura, 36; Carlos Javier Estevez 45; Louis Junior Serrano Rodriguez, 27; Miguel Angel Vasquez, 24; Jovanni Antonio Rosario Garcia, 45; Jose Ismael Dilone Rodriguez, 34 — were charged with mail and wire fraud conspiracy, wire fraud, mail fraud, conspiracy to commit money laundering, and money laundering.

Each of the charges in the indictment carries a maximum penalty of up to 20 years in prison, prosecutors said. Fraud charges also carry a potential fine of up to $250,000 and money laundering penalties reach $500,000. Five New York residents were also charged with wire fraud conspiracy.

Court records obtained by USA TODAY show the indictment was filed in January and unsealed on Monday as U.S. authorities sought to extradite defendants from the Dominican Republic.

An attorney for the defendants was not listed in court records.

How to protect your loved ones from scams

According to the Financial Crimes Enforcement Network, a division of the U.S. Treasury Department, financial exploitation is the most common form of elder abuse but remains widely unreported. 

Michael Jabbara, Visa’s vice president and global head of fraud services, says one of the best practices to protect loved ones from scams is to have a "tech check-in" with aging relatives and review preventive measures:

∎ Share with care: Limit how much personal information you share online. Set your social media profiles to private. If someone asks to connect with you on social media, only accept their request if you know them.

∎ Be wary of “emergencies”: Your family or friends can easily be hacked to send out emails or text messages claiming to be urgently in need of cash or gift cards, scamming you out of money or gift cards.

∎ When in doubt, just ask: If you really think it could be your daughter or grandson reaching out, don’t confirm by replying to the message you received. Instead, reach out in another fashion, such as calling them directly. If the message is from a fraudster, block and report it. If you receive a call from someone who says they represent a government agency, hang up and call the phone number on your account statement or the agency's official website to verify the authenticity of the request. 

∎ Report suspected fraud: If you believe you have become a victim of a scam, file a complaint with the FBI’s Internet Crime Complaint Center.

Contributing: Marc Saltzman, Amritpal Kaur Sandhu-Longoria, USA TODAY