[00:00:00] Speaker A: Foreign.
Welcome to behind the Scams, the podcast that keeps you informed about the latest scams and how to protect yourself. I'm Nick, and with me, as always, is my co host and my wife, Sue.
[00:00:15] Speaker B: Hi, everyone. Today we're tackling a particularly troubling type of fraud that's been making headlines recently. Grandparent scams. These schemes specifically target our elderly population, exploiting their love and concern for family members.
[00:00:33] Speaker A: That's right, Sue. We'll be diving into a fairly recent federal case that broke on November 4th of last year in Rhode island, where two men were arrested for running a sophisticated grandparent scam operation across multiple states. The details of this case are eye opening. These scammers managed to collect around $230,000 from unsuspecting elderly victims before they were finally caught.
This type of scam is particularly heinous because our senior population is the demographic who is the most vulnerable and the segment who cannot afford to lose a dime.
[00:01:15] Speaker B: Throughout today's episode, we'll break down exactly how these scams work, share the remarkable story of how law enforcement caught these suspects, and most importantly, provide crucial information on how seniors can protect themselves from becoming victims.
[00:01:33] Speaker A: Let's dive into the details of this federal case. The two men, Roberto Munoz, who's 29 and from Hialeah, Florida, and Jason Rhodes, 34, from Flushing, New York, were arrested and charged with conspiracy to commit wire fraud and aggravated identity theft. The matter was investigated by Homeland Security Investigations with the assistance of several local agencies, including Newport, Cranston, Hopkinton, West Greenwich, Smithfield, and Coventry, Rhode island police departments, along with the help of numerous other state and local agencies. It just shows the level of law enforcement response that is needed to bring these types of scammers to justice.
[00:02:22] Speaker B: Nick, you know, what's particularly disturbing about this case is the systematic way these scammers operated. They weren't just random scammers. They were working as dedicated couriers traveling through multiple states to collect money from elderly victims.
[00:02:39] Speaker A: You are correct, Sue. In fact, in just the early days of March 2024, these two managed to collect approximately $230,000 from victims across more than a dozen communities. That's an astronomical amount of money in such a short time.
[00:02:57] Speaker B: The scope of their operation was incredible. They had victims in Rhode Island, Massachusetts, and what's really concerning is that investigators found evidence they were targeting people in Wisconsin, Illinois, Virginia, Kansas, Maryland, Tennessee, Iowa, North Carolina, and New Jersey.
[00:03:17] Speaker A: What's interesting about their method is how they operated in specific geographical areas. They would wait for instructions and victim information from Other members of their scam network then move in to collect the cash.
[00:03:32] Speaker B: Right, and these weren't small amounts they were collecting. In one case, they convinced grandparents to hand over $18,000 for what they claimed was bail money for their grandson. But they didn't stop there. They had the audacity to contact the same victims again.
[00:03:50] Speaker A: Yes, they tried to squeeze another $40,000 out of the same couple, claiming their grandchild was now being sued for $100,000. Fortunately, that's when the victims realized something wasn't right.
[00:04:04] Speaker B: When law enforcement searched their vehicle and hotel room after the arrest, they found more than $60,000 in cash. But perhaps more disturbing was finding a device containing chat messages with names and addresses of potential victims across multiple states.
[00:04:24] Speaker A: Yep. This really shows how organized these operations are. They're not just random calls. They're coordinated efforts with multiple people involved, from the callers who make initial contact to the couriers who collect the money.
[00:04:40] Speaker B: And what's particularly concerning is that authorities believe there are still many victims out there who haven't come forward yet. This investigation is ongoing, and the full scope of their operation might be even larger than what we currently know. It is just so very sad, Nick.
[00:05:00] Speaker A: I agree, Sue. That's why we do what we do here at Stamp out scams. This scam madness must stop. We hope and pray that publicizing these scams as much as possible that other victims are alerted to these scams. That's why we create these podcasts, publish scam news on our website, and have a YouTube channel named Scam TV. It is so we can get the word out and stop all these scammers.
[00:05:27] Speaker B: That's exactly right, Nick. People need to hear this scam news and educate themselves, which leads to protecting themselves. That is why we do what we do here. Our name says it all. Stamp out scams.
[00:05:41] Speaker A: Now, let's break down exactly how these grandparent scams typically work, because understanding their playbook is crucial to avoiding them.
[00:05:50] Speaker B: So, Nick, the scam usually starts with an unexpected phone call. The scammer will either pretend to be the victim's grandchild or start with the phrase grandma or grandpa, letting the victim actually provide their grandchild's name.
[00:06:07] Speaker A: Yes, it's a clever but devious tactic. When the victim says something like, jimmy, is that you? The scammer immediately knows to play the role of Jimmy.
[00:06:16] Speaker B: Wow, you're right. This is so devious. But then comes the crisis situation. It's always something urgent and emotionally charged. An arrest, a serious car accident, or some other emergency requiring immediate financial assistance.
[00:06:32] Speaker A: And they're incredibly skilled at creating panic. They'll often say things like, please don't tell mom and dad, I'm so embarrassed, or the judge will only hold my bail for one hour.
[00:06:43] Speaker B: They might even hand the phone to another scammer who poses as an authority figure. A police officer, a lawyer, or a doctor, to add legitimacy to the story.
[00:06:54] Speaker A: Great point, Sue. The tactic of handing the phone to someone who is supposed to be someone of authority is a very, very common tactic in the grandparent scam. Now, what's particularly manipulative is how they isolate their victims. They'll insist on secrecy, claiming embarrassment or urgency, which prevents the victim from taking time to verify the story with other family members.
[00:07:18] Speaker B: You know what, Nick? As we talk about all these types of scams, whether it be the grandparent scam, romance scams, or some type of crypto scam, many commonalities come to the surface. One such tactic is isolation.
[00:07:33] Speaker A: You are right on the money suit. They also use specific pressure tactics. They'll stay on the phone with victims while they go to the bank, coaching them on what to say if bank employees ask questions about large withdrawals. And these scammers are adaptable. If a victim says they only have $5,000 instead of the requested $8,000, they'll quickly adjust and say that amount will work.
[00:07:58] Speaker B: For now, the final piece is the courier service. Like we saw in the case we just discussed, they'll either send someone to the victim's home or arrange a meeting spot, often making it seem like it's a bail bondsman or legal courier.
[00:08:15] Speaker A: What makes these scams so effective is the combination of emotional manipulation, urgency, and the exploitation of grandparents natural desire to help their grandchildren. They literally don't give victims time to think clearly.
[00:08:30] Speaker B: And unfortunately, once the money is handed over to these couriers, it's extremely difficult to recover. These criminal networks are sophisticated enough to move and launder the money quickly.
[00:08:43] Speaker A: One of the most fascinating aspects of this case was how the Warwick Police Department turned the tables on these scammers with a brilliant sting operation.
[00:08:53] Speaker B: That's right, Nick. After one elderly couple had already lost $18,000 to these scammers, they received another call demanding an additional $40,000.
[00:09:04] Speaker A: But this time, something clicked for the grandparents. They realized they were being scammed and made the crucial decision to contact law enforcement.
[00:09:13] Speaker B: The Warwick police didn't waste any time. They set up surveillance both inside and outside the victim's home, basically turning it into a trap for the courier.
[00:09:23] Speaker A: I love this type of law enforcement ingenuity. And in this case, it worked perfectly. The scammer named Jason Rhodes walked right into it when he showed up at the house to collect what he thought would be another payment from the victims.
[00:09:40] Speaker B: But the police weren't done. They also caught one of the other scammers, a lowlife named Roberto Munoz, who was sitting in a nearby car, apparently acting as a lookout and waiting for Rhodes to return.
[00:09:54] Speaker A: The evidence they uncovered was staggering. Tell our listeners what they found, Sue.
[00:09:59] Speaker B: When police searched their vehicle and a hotel room registered to Rhodes, they discovered more than $60,000 in cash. But that wasn't all. They also found something that broke the case wide open.
[00:10:12] Speaker A: Yes, this was a real Perry Mason moment. The smoking gun was a device they seized from Rhodes. It contained chat messages between him and Munos that revealed just how extensive their operation was.
[00:10:27] Speaker B: A Perry Mason moment? Really, Nick? You are really dating yourself. Let's just call it a moment of victory for law enforcement. The messages they found included names and addresses of potential victims across multiple states. We're talking Wisconsin, Illinois, Virginia, Kansas, Maryland, Tennessee, Iowa, North Carolina, and New Jersey.
[00:10:49] Speaker A: What's particularly striking about this case is how it shows the value of victims coming forward and working with law enforcement. If these grandparents hadn't recognized the scam and contacted the police, these criminals might still be operating today.
[00:11:04] Speaker B: And it's worth noting that this was actually the third. Third complaint the Warwick police had received in just one week about these types of scams. That's what helped them respond so quickly and effectively.
[00:11:16] Speaker A: Let's talk about the shocking scope of grandparent scams across the country in the past year alone. The FBI reports that Americans lost over $2.6 billion to elder fraud schemes, with grandparent scams being one of the most prevalent.
[00:11:33] Speaker B: And what's particularly alarming, Nick, is that experts believe these numbers represent only about 10% of actual cases, since many victims feel too embarrassed to report the crime.
[00:11:44] Speaker A: The average loss per victim in grandparent scams is approximately $8,000. But as we saw in the Rhode island case, some victims are losing much more than that.
[00:11:55] Speaker B: That's right. The FBI's Internet Crime Complaint center received over 14,000 reports of grandparent scams last year, with victims across all 50 states.
[00:12:05] Speaker A: What's interesting is how these scams tend to cluster in certain areas. The criminals often target specific regions for a few weeks before moving on to avoid detection.
[00:12:15] Speaker B: And the pandemic actually made this worse. We saw a 60% increase in reported grandparent scams during COVID 19, when seniors were more isolated and vulnerable.
[00:12:26] Speaker A: The pandemic seemed to have really opened a lot of doors for scammers. Many current scams really skyrocketed during the pandemic.
[00:12:34] Speaker B: Exactly right, Nick. Relative to the grandparents scams, the age demographics are particularly concerning. The majority of victims are between 70 and 85 years old, with women being targeted slightly more often than men.
[00:12:50] Speaker A: According to the Federal Trade Commission, the success rate of these scams is highest between 2pm and 6pm which is when many seniors are home alone.
[00:12:59] Speaker B: Another disturbing trend is the increasing sophistication of these operations. Modern scammers are using social media to gather detailed information about families, Making their stories more convincing.
[00:13:13] Speaker A: And they're getting better at it. The recovery rate for this type of fraud is less than 5%, meaning most victims never see their money again.
[00:13:22] Speaker B: Looking at the geographical spread, California, Florida, and New York report the highest number of cases, but that's largely due to their larger elderly populations.
[00:13:32] Speaker A: What's truly heartbreaking is that about 30% of victims end up being scammed multiple times, Often by the same criminal network using different scenarios. Let's talk about the warning signs of grandparent scams. One of the biggest red flags is the urgent demand for secrecy. Scammers will almost always insist that you don't tell anyone else about the situation.
[00:13:54] Speaker B: That's right, Nick. They'll often say things like, please don't tell mom and dad, or this needs to stay between us. This is a classic manipulation tactic to isolate the victim from people who might intervene.
[00:14:09] Speaker A: Another major red flag is the pressure to act immediately. These scammers create a false sense of emergency, claiming that bail money or medical bills need to be paid right away.
[00:14:20] Speaker B: And they're very specific about payment methods. They typically demand cash, wire transfers or gift cards. Payment methods that are virtually impossible to trace or recover.
[00:14:31] Speaker A: I think it's important to point out how these scammers play on emotions. They often call late at night or very early in the morning when people aren't thinking, thinking clearly.
[00:14:40] Speaker B: They also use background noise to create confusion. Sometimes you'll hear what sounds like crying or distress in the background, Making it harder to recognize that the voice isn't actually your grandchild.
[00:14:54] Speaker A: Another sophisticated tactic is what we call social engineering. They might use information gleaned from social media to make their story more convincing.
[00:15:04] Speaker B: Yes, they. They'll drop personal details, like real names of family members or recent events. But here's a key. They often make mistakes about basic family information that a real relative would know.
[00:15:17] Speaker A: A very important point is this. Be sure and watch out for callers who resist verification. A legitimate person won't object to you hanging up and calling your grandchild or other family members directly to confirm the story.
Can you imagine any police officer or detective not willingly giving their badge number or ID number? Usually you don't even have to ask. They provide it at the beginning of the call.
[00:15:44] Speaker B: That's right, Nick. But scammers really, really hate to be questioned. It seems to set them off. So if the person of authority being played by the scammer starts to get flustered with simple questions, he just helped prove your suspicions.
[00:16:00] Speaker A: Now that we've covered the warning signs, let's talk about some concrete prevention strategies that seniors can use to protect themselves from these scams. The first and most important strategy is to establish a family code word. This is something that only real family members would know, and it can be used to verify identity during emergency situations. It doesn't have to be something real complicated. For example, we have a family code word, don't we Sue? And it's very simple, but something we would recognize in time of crisis. And no, it's not call the cops.
[00:16:37] Speaker B: Is this a trick question to test my memory, Nick? Well, surprise. I do recall our family code word even though we haven't talked about it for a while. It is simply using one of our beloved pets name in a sentence. It just so happens that it is the name of a pet who has passed away. In fact, I may start crying just thinking about our late but beloved fur baby. I won't give out our code name publicly on this podcast, but let's just say that if a scammer was on the phone posing as a grandchild, I would say something like oh boy, Rex is not going to like this. If the scammer blows past the statement or asks who is Rex? Then they are exposed as fake. You can even repeat it again to see if they respond if they didn't the first time. And how you use the pet's name in a sentence doesn't matter. Just the use of the code name is enough of an alarm. This is all excellent advice, Nick, and families should also create a clear communication plan. For instance, agree in advance on how real emergencies will be handled and who will be the point of contact.
[00:17:50] Speaker A: Another crucial strategy is the pause and verify rule. No matter how urgent the situation seems, always take the time to independently verify the story.
[00:18:02] Speaker B: Absolutely. Keep a list of your family members actual phone numbers near your phone. If someone calls claiming to be your grandchild or representing them, hang up and call their number directly.
[00:18:14] Speaker A: And don't call back the number that appears on your caller ID or any number the potential scammer gives you. Always use the numbers you already have or can verify independently through Google or other independent websites.
[00:18:28] Speaker B: Another important step is to limit what you share on social media science. Scammers often use these platforms to gather information about family relationships and recent activities, right?
[00:18:40] Speaker A: And if you do use social media, make sure your privacy settings are properly configured. Don't accept friend requests from people you don't know personally. Now sue, let's talk about the resources available if you or someone you know becomes a victim of a grandparent scam.
The most important thing to remember is that help is available. For example, the Department of Justice has established the National Elder Fraud Hotline, which is a fantastic resource. The number is 1-833-FRAUD11.
[00:19:15] Speaker B: What I really appreciate about this hotline is that it's staffed by experienced professionals who provide personalized support to each caller their available set seven days a week. Please check their site for exact operating hours.
[00:19:29] Speaker A: And they don't just listen, they take action. The case managers will help identify the appropriate reporting agencies and connect victims with the help they need.
[00:19:39] Speaker B: They also offer services in multiple languages, including Spanish, which makes this resource accessible to more people in our communities.
[00:19:50] Speaker A: Another important resource is your local FDA FBI field office. They work closely with other law enforcement agencies to investigate these crimes, and they have special units dedicated to elder fraud.
[00:20:02] Speaker B: And don't forget about your local adult protective services. They can provide additional support and resources, especially if you're concerned about an elderly person's financial security.
[00:20:14] Speaker A: As we wrap up today's episode, I can't stress enough how crucial it is to stay alert against these grandparent scams. The case we discussed today shows just how sophisticated these operations have become.
[00:20:28] Speaker B: And as you always stress, Nick, remember that these scammers are professionals who prey on our natural instinct to help family members in crisis. It's not about being gullible, it's about being targeted by highly skilled criminals.
[00:20:45] Speaker A: If you're listening to this podcast, please share this information with your elderly parents, grandparents, or any seniors in your life. Have those important conversations about what to do if they receive one of these calls.
[00:21:00] Speaker B: That's right, and maybe help them set up a family code word or a verification system. Something simple that can help them quickly confirm if a family member is really in trouble.
[00:21:11] Speaker A: You can find more information about protecting yourself and your loved ones on our
[email protected] we also have regular blog posts and podcasts on the latest scam trends. Additionally, we have a scam education library with downloadable documents relative to various scams and scam prevention guidance.
[00:21:33] Speaker B: And if you have a story about scams that you'd like to share, or if you have questions for us, you can reach out to us by sending an email to infostampoutscams.org until our next episode.
[00:21:46] Speaker A: This is Nick saying bye for now.
[00:21:48] Speaker B: And this is sue reminding you to stay safe, stay alert, and stay scam free. Thanks for listening to behind the Scams. Bye for now.
