New York authorities warn of gold bar scam targeting seniors, costing victims over $100 million

New York authorities are warning of a sophisticated scam that has defrauded victims, predominantly seniors, of over $100 million in the last two years. The scheme, detailed by the state's Attorney General Letitia James, begins with deceptive pop-up messages claiming computer or financial account compromises.

Victims are instructed to call a provided number, where scammers posing as legitimate support staff gain remote access to their computers. This access allows them to steal financial information. Subsequently, individuals impersonating law enforcement contact the victims, falsely claiming their accounts are at risk. To "protect" their money, victims are directed to withdraw funds and purchase gold bars or coins, which are then collected by couriers.

“

Targeting older adults with seemingly legitimate claims that their life savings are in immediate danger is flat-out cruel. Seniors deserve to live comfortably without fear of losing their hard-earned savings to a manipulative scam. I am urging all New Yorkers to beware of these gold bar scams and report suspicious messages related to this scam to my office.

"Targeting older adults with seemingly legitimate claims that their life savings are in immediate danger is flat-out cruel," James stated. She urged New Yorkers to be vigilant and report any suspicious messages. The scam is not confined to New York, with similar incidents reported in Hawaii, Maine, Washington D.C., and Wisconsin.

In one instance in July, an 85-year-old man in D.C. was targeted via email and phone. He was persuaded to buy $200,000 in gold, but the dealer recognized the scam and alerted law enforcement. Suspects were arrested when they arrived to collect the gold. Authorities advise against calling numbers from unsolicited messages, granting remote computer access, or transferring money based on phone calls. They recommend contacting financial institutions directly if account issues are suspected and reporting any potential victimization.

“

A scam is effective because the scammer creates a false sense of urgency, pressuring the victim into life-altering decisions on the spot and swearing them to secrecy. The best way to combat this is to hang up and contact someone you trust and let them know your situation.