Grandparent Scam: The U.S. attorney’s office in Vermont has charged 25 Canadian nationals in a massive fraud case known as the “Grandparent Scam.” These individuals, all from Ontario and Quebec, targeted elderly Americans in 45 states, tricking them into sending money by pretending to be grandchildren in trouble.
Grandparent Scam: How the Grandparent Scam Worked
Between 2021 and June 2024, scammers operated from call centers in Montreal, phoning older Americans and claiming to be relatives who had been arrested and needed bail money. They also told victims there was a “gag order” preventing them from discussing the case with other family members.
Once the victims sent the money, it was quickly transferred to Canada. Authorities say some transactions involved cryptocurrency, making it harder to trace.
Major Arrests and Charges
Grandparent Scam: As of Tuesday, 23 out of 25 accused had been arrested in Canada, and their indictments were unsealed. Five key members of the group, who managed the call centers, were also charged with money laundering.
According to Homeland Security Investigations (HSI), this scam defrauded hundreds of victims out of $21 million over three years. Michael J. Krol, a special agent with HSI, emphasized that international collaboration was key to these arrests.
Grandparent Scam: Penalties for the Accused
The five managers could face up to 40 years in prison.
The other 20 individuals could face 20 years in prison.
Additionally, nine Americans had already been charged earlier in connection with this scheme.
FBI Warning: Grandparent Scams Are Common
The FBI has warned that similar scams frequently target elderly individuals, exploiting their concern for loved ones. The scam was even featured in the 2024 movie “Thelma,” which tells the story of a 93-year-old woman trying to recover her stolen money.
Grandparent Scam: Final Thoughts
Authorities are urging people to be cautious and verify any calls requesting urgent money transfers. Scammers often manipulate emotions to exploit victims, making awareness and education key defenses against such fraud.
