In early March, a pair of Warwick grandparents gave up over $18,000 to cover what they thought was their grandson’s bail.
They were contacted again and told to pay $40,000, but this time, they recognized the request as a scam and contacted the Warwick Police.
The incident, according to a press release from the U.S. Attorney’s Office for the District of Rhode Island, is part of a growing number of cases of elder fraud in the Ocean State.
Elder fraud is a type of financial crime that targets older adults and can take many forms, including “grandparent scams” in which scammers pretend to be a grandchild in need of financial assistance.
The couple was allegedly contacted by two adults who did not reside in Rhode Island, who were arrested on Mar. 8 when the pair came to collect the money at the elder couple’s house. The U.S. Attorney’s Office claims $60,000 in cash was found in Munoz’s car and at a nearby hotel room registered to Rhodes. The pair is also alleged to have collected $230,000 total from similar schemes.
Munoz and Rhodes face charges of conspiracy to commit wire fraud and aggravated identity theft. Both men have been released on unsecured bond and with GPS electronic monitors, according to the press release.
This case is not an isolated incident.
The 22% growth rate of elder fraud cases in R.I. is the third-highest among the U.S. states between 2022 and 2023. The District Attorney’s office is currently investigating additional cases of elder fraud.
In September, two adults were separately charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering and money laundering for their alleged elder fraud schemes against R.I. residents. Both individuals are detained in federal custody, according to a press release.
In late October, Representative Gabe Amo (D-R.I. 1) sent a letter to the chair of the Federal Trade Commission seeking help to combat elder fraud in Rhode Island. In the letter, Amo asked for advice on legislation to “stop scam artists in federal courts, freeze their assets and return funds to consumers.”
Amo also urged the FTC to hold an event in R.I.’s first congressional district to raise awareness and provide information about elder fraud prevention and for the FTC to provide other resources to Amo’s staff.
In a statement to The Herald, Amo said that the FTC’s initial response contained “helpful consumer education content,” including “resources aimed at keeping seniors informed about the latest trends in fraud and scams.”
Amo told The Herald that he hopes to “enhance the ability of law enforcement and regulatory agencies like the FTC to identify and prosecute those who scam our seniors in Rhode Island and across the country.”
AARP Rhode Island is also working to slow the scourge. “We have a motto at AARP that if you could spot a scam, you could stop a scam,” AARP’s R.I. State Director Catherine Taylor told The Herald.
In an interview, Taylor explained that elder fraud prevention is two-pronged: raising awareness among elders on how to identify and prevent a scam and regulatory measures that limit damages.
AARP R.I. is pushing for legislation that would regulate cryptocurrency ATMs to prevent losses due to fraudulent or accidental transactions.
The bill was introduced in the Rhode Island House of Representatives in January. But the House Committee recommended the bill to be held for further study until the next legislative session.
In 2023, AARP R.I. successfully advocated for a bill that attempts to prevent gift card scams by requiring R.I. gift card retailers to post a notice warning about gift card fraud.
That law is now in effect.
