Scam Spotlight: Government Imposter Scam Leads to Gold Bar Loss

In a recent complaint reported to DATCP a consumer liquidated their entire life savings, purchased gold bars, and gave them to a scammer who was impersonating a government agency. The consumer lost $2.5 million in total.

Scammers impersonating the Federal Trade Commission contacted this consumer, convinced them their finances were caught up in a scheme involving criminal cartels and money laundering, then claimed they could help. But in order to help the scammers convinced this consumer they had to sign a (fake) non-disclosure agreement and pressured them to keep the situation a secret – even from their closest friends and family. One of the scammers then talked the consumer through the process of liquidating their life savings, transferring it to a bank, and converting it into hundreds of gold bars. Finally, the scammers arrived at the consumer’s house to pick up the gold bars, drove away, and the consumer never saw or heard from them again.

The scammers claimed this all needed to be done in order to “protect” the consumer’s money. By using tactics like urgency, high pressure, threats of consequences, and impersonation of a trusted government entity, scammers manipulate consumers’ emotions – and they are good at it. Remember – Everyone is at risk of having their money or personal information stolen by a scammer.

Here are important tips to help consumers avoid scams:

· Pause before acting. Scammers pressure consumers to act quickly so it’s more likely the consumer will follow their guidance and overlook red flags. It’s important for consumers to pause and reflect on a situation logically before they act.

· Tell someone what’s going on. Scammers don’t want people to tell anyone else about the scam, so they make up reasons why the consumer needs to keep it a secret. By having open conversations with people they trust about stressful situations, consumers can receive honest feedback and advice that could help them realize they are being targeted by a scammer.

· Consumers never need to move their money to protect it. Financial accounts are already secure, and if there are any problems, a financial institution will contact a consumer directly. No honest business or government agency will tell a consumer to immediately move their money.