Ugh. A friend's mother fell for this exact thing. Spent a couple days "disinfecting" her computer. A few hours later, it finally dawned on her that she had been scammed (when someone asked her how the people could have known she had viruses), but she was too proud to talk about it/fight with the scammers.

Very smart though, targeting home phones, as they're just the right generation to fall for this type of scam.