Authorities in New York are warning residents about a growing gold bar scam that has primarily targeted older adults and allegedly cost victims more than $100 million over the past two years. Fraudsters use fake computer alerts, impersonate law enforcement officials and pressure victims into converting their savings into gold before arranging for couriers to collect it.
How the Gold Bar Scam Works
The fraud typically begins with a pop-up message claiming that a person’s computer or financial account has been compromised. The message provides a telephone number and urges the recipient to call for assistance.
Once contact is made, scammers may persuade victims to give them remote access to their computers. This can allow criminals to obtain sensitive financial information and gain access to online banking accounts.
The fraud then escalates. Victims are connected with someone pretending to be a police officer or other law enforcement official. The fake official claims the victim’s money is in danger and instructs them to withdraw their funds and purchase gold bars or coins for protection.
Scammers Use Pressure and Secrecy
A key part of the scheme is creating a sense of immediate danger. Victims are told their savings are at risk and are often instructed not to discuss the situation with family members, friends or financial institutions.
After the gold is purchased, criminals arrange for couriers to collect the precious metals, sometimes directly from the victim. New York Attorney General Letitia James has described the targeting of older adults through threats involving their life savings as particularly cruel and urged residents to remain cautious.
The scam has also appeared outside New York, with similar cases reported in Hawaii, Maine, Washington, DC and Wisconsin. In one Washington, DC case, an 85-year-old man was persuaded to try to purchase approximately $200,000 in gold. A dealer recognized the warning signs and contacted authorities, helping investigators stop the transaction and arrest suspects who later arrived to collect the gold.
Authorities Urge Victims to Slow Down
Officials are advising people not to call telephone numbers displayed in suspicious pop-ups, texts or emails and never to give unknown individuals remote access to their computers.
Anyone who receives an unexpected warning about a compromised bank account should contact their financial institution directly using a trusted phone number or official website. People should also avoid withdrawing or transferring money because of instructions received during an unsolicited phone call.
Authorities emphasize that scammers often rely on fear, urgency and secrecy to prevent victims from seeking a second opinion. Anyone who believes they may have been targeted or lost money should contact law enforcement
