The price of gold has increased over the last week, which could give swindlers more opportunities to trick their victims. The gold bar scam sounds like a con no one could possibly fall for, but it does happen.
The scheme involves victims, usually senior citizens, sinking their life savings into gold, silver or some other precious metal to safeguard their assets, after being convinced to do so by a con artist. If a scammer gains your trust, it can seem like a good idea to follow their advice and invest in gold, a precious metal that's typically a sound investment in times of economic uncertainty.
But once a victim entrusts the gold bars to the scammer for safekeeping -- surprise -- the scammer is never heard from again. Gold bar ploys are on the rise. The FBI first warned about an increase in these scams in January 2024, but their popularity has grown.
The FBI issued another warning last summer, specifically warning residents in Sarasota County, Florida, amid complaints that gold bar scams had duped seniors out of more than $300,000. Random cases kept popping up through the end of 2024. This year, gold bar scams have duped victims in Portland, Oregon, and New York.
Gold bar scams generally work like this: A bad actor will concoct an elaborate backstory and impersonate a government official, maybe from the FBI or the Treasury, to convince someone that their money isn't safe in the bank. The criminal will urge the victim to remove their money from their savings account and invest it in gold.
If they listen, they'll either find a local gold merchant or order it online. Then the victim will meet the scammer posing as a courier who will take the gold, promising to deliver it to a safer location. They may even give a receipt to the victim. However, the courier will abscond with the gold instead.
Why are criminals turning to gold bar scams? Scammers have focused on gold lately for several reasons: Gold is a valuable commodity and hard to trace. People are also easier to get through than a bank security system. Tech companies and banks have made it difficult for consumer accounts to obtain viruses or get hacked, according to Robert Siciliano, a security analyst and author of Identity Theft Privacy: Security Protection and Fraud Prevention.
"Information security is the best it's ever been," Siciliano said, "and the most effective way to get around all this security is through social engineering. A scammer can trick someone into giving up their money or sensitive information by making them feel like they're getting a good deal or that there's some kind of urgency."
Gold is also an attractive target because it's often perceived as a safe-haven asset, which can make people more vulnerable to scams. Additionally, the rise of online gold investing platforms has made it easier for scammers to reach potential victims.
How to avoid gold bar scams It's important to remember that if someone is offering unsolicited advice about taking your money out of your bank and putting it elsewhere, you should be on your guard. It's very unlikely that a government official would give you any such advice.
Pay attention to your intuition. If you feel something might be off, it probably is. If your trusted bank associate raises concerns about the legitimacy of your withdrawal, listen to them. They're trained to keep an eye out for suspicious transactions.
While they can't stop you from withdrawing your money, they can tell you whether the reasons behind the withdrawal sound odd. Banks and credit unions wouldn't be able to refund the money if you take it out, according to Jennifer Hallenbeck, collection and fraud manager at Wasatch Peaks Credit Union.
Contact your bank or contact these government agencies: The Federal Trade Commission always wants to hear from people who are unfortunate victims of fraud. The FBI's Internet Crime Complaint Center is also an excellent resource, and they, with the police, may want to get involved in your case.
Your state attorney general's office would likely appreciate hearing about your situation. Don't wait – report the scam as soon as possible to help prevent others from falling victim to this type of scam.