At 04.31 hours on 19 Mar, 1942, the unescorted and unarmed Papoose (Master Raymond Zalnick) was torpedoed by U-124 about 15 miles southwest of Cape Lookout, while steaming a zigzag course at 11 knots in moderately rough seas. One torpedo struck on the port side at the break of the poop and entered the fuel bunker, causing the flooding of the engine room and fireroom. The engines stopped immediately and two crew members on watch below were killed.

The first lifeboat was launched after five minutes and was barely missed by a second torpedo at 04.44 hours, which struck on the starboard side just aft of amidships. The explosion opened a large hole near the waterline that extended eight feet above the water, causing the ship to sink a few hours later. A second lifeboat was launched five minutes after the second hit. The surviving eight officers and 24 crewmen were picked up by USS Stringham (DD 83) about ten hours after the attack and taken to Norfolk, Virginia.