The gold bar scam sounds like a scam that no one could fall for, but it happened. The scam involves victims, usually older people, who have trapped their life savings in gold, silver or other precious metals to protect their assets and after being persuasive by the scammers.
If a scammer gains your trust, advice like investing in gold (usually a reasonable investment in a time of economic uncertainty) sounds like a good idea. You will never hear about them again only if the gold bars are given to the scammers for custody.
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Gold bar scams are on the rise. The FBI first warned that these scams increased in January 2024, but their popularity grew.
The FBI issued another warning last summer, particularly warning residents of Sarasota County, Florida, and complained that the Golden Bar scam had allowed seniors to deceive older people from over $300,000. By the end of 2024, random cases will continue to appear. This year, the gold bar scam deceived victims in Portland, Oregon and New York.
What is a gold bar scam?
Gold Bar scams usually work like this: A bad actor will construct a well-designed backstory and imitate government officials from the FBI or Treasury Department to convince someone that their money is not safe in the bank.
The offender will urge victims to remove their money from their savings accounts and invest it in gold. If they listen, they will find local gold merchants, or order online. The victim will then encounter a scammer, posing as a courier, who will take the gold and promise to ship it to a safer location. They may even give to the victim. However, the couriers will abscond with gold.
Why do criminals turn to gold bar scams?
Scammers have been focusing on gold recently for several reasons: Gold is a valuable commodity and is difficult to track. People are also more likely to pass through than bank security systems.
Robert Siciliano, a security analyst and author of identity theft, said it is difficult for tech companies and banks to obtain viruses or be hacked.
“Information security is the best ever, and the most effective way to solve all of these security is of course an invasion of humanity,” Siciliano said.
Gold is known for its value
Similar to price fluctuations in other investment tools, gold can do the same. Still, criminals know that money can be made from gold.
“Use gold [selling] “As high as $3,000 per ounce, it has never been more attractive for the scam to strengthen the shotgun method and target the mass group with this particular trick,” Siciliano said.
He added that 98% of people would not be attracted to talk to scammers about transferring their money to the gold side, but if 2% of targeted people do talk to scammers, it is everything you need to make this a profitable scam.
People believe in gold
People don’t always believe in the economy, but they tend to trust gold.
“As precious metals, such as gold, rapidly gain value and attract widespread attention, scammers will jump and use it to their advantage,” said Darius Kingsley, managing director and head of consumer banking at JPMorgan Chase. “Gold is often sought as a hedge against economic instability or inflation.”
Gold is basically impossible to track
The gold bars have serial numbers, but it is impossible to tell where the metal once melted. Given that you are a criminal trying to sell stolen artwork or cars, it is relatively easy for law enforcement to determine what is going on if the police catch up with you.
Gold has power to our imagination
In school, you learned about the gold rush of 1849. If you’re a fan of James Bond, you’ll probably be familiar with the movie Goldfinger and how the villain plans to steal gold from Fort Knox. TV advertising often pushes gold to a safe, secure investment.
If criminals convince your bank account is not safe, it makes sense that they would suggest gold rather than convince someone to invest in the life savings they have paid. Gold is familiar and sounds like a logical investment.
How to Avoid Gold Bar Scam
It is important to remember that if someone provides advice on taking your money out of the bank and putting it elsewhere, you should be on your watch. It is unlikely that government officials will give you any such advice. Pay attention to your intuition. If you feel something might happen, that might be.
If your trusted bank assistant raises concerns about the legality of your withdrawal, listen to them. They are trained to keep an eye out for suspicious transactions. While they can’t stop you from withdrawing your money, they can tell you if the reason behind the withdrawal is strange.
If you take out the money, banks and credit unions will not be able to refund the money, said Jennifer Hallenbeck, Wasatch Peaks Credit Union collection and fraud manager.
What to do if you fall into a gold bar scam
Unfortunately, it is impossible to recover lost funds using this type of scam. However, that doesn’t mean you can do nothing.
Call the police immediately. If you encounter a courier or pick up gold from your home, the thief may still be wandering around the area, or there may be evidence that the police can collect it.
Contact your bank. While your bank doesn’t need to take out the money on its own, it doesn’t need your bank to understand the scam and can help them raise awareness. Now, if your bank is robbed, whether it is a masked gunman or a cyber hacker, you will get your money back. This is why banks are insured by FDIC, such as theft of customers is not the customer’s fault. But in the case of a gold bar scam, you are deceived into becoming a robber.
Hallenbeck says it’s a good idea to call your bank or credit union if you’re cheated. They usually submit reports to the FBI on behalf of their members. The bank can also take additional precautions, such as freezing your account or sending an alert on it to prevent future scams.
Contact these government agencies. The FTC always wants to hear about the unfortunate victims of fraud. The FBI’s Internet Crime Complaint Center is also a great resource for them to work with police who may want to participate in your case. Your state attorney general’s office may be happy to hear about you.
