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New York authorities warn about gold bar scam targeting seniors

Created at 8 Aug · 2:25 PM1 source↑ Market-relevant
IN SHORT

New York Attorney General Letitia James announced that scammers have stolen over $100 million from seniors in the past two years using a gold bar scheme. The scam involves fake pop-up messages, remote computer access, and demands for victims to withdraw funds to purchase gold.

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Key Numbers

$100mmoney stolen by scammers
two yearstimeframe of scam activity
85-year-oldage of a victim in DC
$200,000amount targeted in one case

Who's Involved

New York authorities
warning about a gold bar scam
Letitia James
New York State Attorney General
Seniors
primary targets of the scam
Scammers
perpetrators of the gold bar scheme
Law enforcement
impersonated by scammers

↳ Why This Matters

This scam preys on seniors' trust and fear, leading to significant financial losses and emotional distress. The involvement of impersonated law enforcement and the use of gold as a collection method highlight the evolving tactics of financial fraudsters targeting vulnerable populations.

Key facts

  • Scammers in New York have stolen over $100 million from seniors in two years using a gold bar scheme.
  • The scam involves fake pop-up messages, remote computer access, and convincing victims to buy gold bars or coins.
  • Scammers pose as law enforcement to collect the gold from victims.
  • Similar scams have been reported in Hawaii, Maine, Washington DC, and Wisconsin.
  • Authorities advise the public not to trust suspicious pop-ups or provide remote computer access.

New York authorities have issued a warning regarding a sophisticated scam that targets seniors by using gold bars as a means to steal money. Over the past two years, this scheme has resulted in losses exceeding $100 million, according to New York Attorney General Letitia James.

The scam typically begins with victims receiving a deceptive pop-up message on their computer, falsely claiming their device or financial accounts have been compromised. The message prompts them to call a provided phone number. Upon calling, scammers, posing as legitimate representatives, persuade victims to grant remote access to their computers, enabling them to access sensitive financial information and online banking details.

Subsequently, individuals posing as law enforcement officers contact the victims. They inform the victims that their accounts are at risk and instruct them to withdraw their money to purchase gold bars or coins. The scammers then arrange for couriers to collect the purchased gold, advising the victims to keep the matter secret.

Attorney General James condemned the scam, stating, "Targeting older adults with seemingly legitimate claims that their life savings are in immediate danger is flat-out cruel." She urged New Yorkers to be vigilant and report any suspicious messages related to this scam.

The fraudulent activity is not confined to New York, with similar incidents reported in Hawaii, Maine, Washington D.C., and Wisconsin. In one notable case in July, an 85-year-old man in D.C. was targeted via email and phone by individuals claiming to be U.S. federal agents. When the victim attempted to purchase $200,000 in gold, the dealer recognized the scam and alerted law enforcement, leading to the arrest of suspects upon their arrival to collect the gold.

Authorities are advising the public to ignore numbers from unsolicited pop-ups, texts, or emails, and to never grant remote access to their computers to unknown individuals. They also stress the importance of not transferring money from bank accounts based on phone solicitations. If a financial institution contacts a potential victim about an account issue, they should independently verify by contacting their bank directly. Individuals who believe they may have fallen victim to this scam are encouraged to report it to law enforcement.

Frequently asked questions

It is a scam where perpetrators convince victims, primarily seniors, to withdraw money from their accounts to buy gold bars or coins, which are then collected by couriers posing as law enforcement.

Scammers have made off with more than $100 million from victims over the past two years.

Victims receive fake pop-up messages claiming their computer or financial accounts are compromised, with a phone number to call.

Do not call numbers from suspicious pop-ups, texts, or emails, do not grant remote computer access, and do not provide money at the urging of someone over the phone. Contact your financial institution directly if you suspect an issue.

What Happens Next

01New Yorkers are urged to report suspicious messages related to this scam to the Attorney General's office.
02Individuals who believe they may have been a victim are encouraged to contact law enforcement.

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Cadence

How It Developed

Scammers are using gold bars to steal money from victims, primarily seniors.
The scheme begins with fake pop-up messages claiming computer or financial accounts are compromised.
Victims are convinced to grant remote access to their computers and then told to withdraw funds to buy gold bars or coins.
Scammers pose as law enforcement and collect the gold from victims.
New York Attorney General Letitia James stated the scam is cruel and targets seniors' life savings.
Similar scams have been reported in Hawaii, Maine, Washington DC, and Wisconsin.
In one instance, a dealer recognized the scam and alerted law enforcement, leading to arrests.
Authorities advise against calling numbers from suspicious pop-ups or providing remote computer access.

Sources

T1
New York authorities warn about gold bar scam targeting seniorsThe Guardian

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