Inside the Growing Gold Bar Scam: Its Process and How You Can Avoid it

Have you ever dreamed of getting rich, holding a lot of shiny gold bars? But what if I told you that the shine isn’t always what it seems? That’s right. Scammers can dupe you with the growing gold bar scam.

The gold bar scam is where scammers trick people into buying gold to secure their money under the false pretense of a government security program. To protect yourself, stay calm and verify claims first before making a financial decision.

Historically, gold has been a significant part of monetary systems. There’s even the system called The Gold Standard which was first implemented in England. In this system, the value of a country’s currency is linked to gold. It turns out, scammers are tricking people into converting their cash into gold.

Basically, the gold bar scam is where scammers pressure their targets into converting their cash into gold, which scammers will pick up with their couriers.

This scam is effective because scammers rely on psychological manipulation.

One victim of this scam is Kris Owen, a widower. He lost his wife, leaving him emotionally vulnerable. That’s why scammers targeted him with the gold-bar scam.

It started with a pop-up message, notifying Owen that his device had been hacked. The message came with a phone number that Owen was instructed to call.

When Owen called, he was connected to a fake FBI agent.

Then, Owen received an email from a supposed cybersecurity task force, claiming that Owen’s name has been compromised and framed for a drug crime. He was instructed to secure his money through an FBI program that would put his money in a security deposit.

Owen’s name also appeared in the San Antonio, Texas case of cocaine confiscation.

The conversation with the fake FBI lasted for months.

Scared and convinced that it really was the FBI, Owen took out $80,000 from his life savings and used it to buy gold bars.

The Fake FBI instructed Owen to bring the gold bars home and send a picture of them. Then, they told him to drop the gold bars off at a parking lot, where their agent will pick them up.

In the parking lot, Owen met the supposed agent who never said anything to him. The agent just took the gold bars and drove off.

After that, Owen kept receiving more “official” letters, all claiming his gold was perfectly safe. What’s more, the supposed FBI instructed Owen to withdraw more money and buy gold.

That’s when Owen got suspicious and reached out to the real FBI.

Owen stressed that the letters he received were really convincing – that they did look like they were from the FBI.

With help from the FBI, Owen participated in a sting operation that led to the arrest of the scam's mastermind, Abdul Afan Mohammed from Chicago. He was charged with wire fraud but pleaded not guilty.

Unfortunately, authorities revealed that Mohammed has fled the country and remains a fugitive.

Kris Owen’s experience is not unique. According to the FBI, there are several cases related to this gold bar scam. In most of them, scammers have couriers that travel across state lines and even farther distances.

In 2024, gold bar scam victims lost over $120 million.

Keep in mind: Not all victims file a report. So, the financial loss to this scam could be more.

Here’s a detailed process of the gold bar scam:

• Step No. 1 - Victim Research: Scammers identify their targets by gathering information about them. They can do this by scraping social media for personal information (e.g. age and marital status) or buying information on or hacking data brokers to get data points like phone numbers and email addresses.

This research helps scammers customize their attacks based on their targets, making the deception more convincing. Often, they target people with financial resources and emotionally vulnerable individuals (e.g. widows and retirees).

• Step No. 2 - Fake Warning: Scammers send a pop-up message. Often, it will randomly appear on your device. The message will claim that your device has been compromised or that your name is implicated in a crime. It will include a phone number for you to call for immediate assistance.

• Step No. 3- Fake Authority: When you call, you will be connected to a scammer posing as a government agent. They’ll send official-looking documents or emails to appear more credible.

• Step No. 4- Government Protection Ruse: Scammers will manipulate you by using real-world criminal cases, making you feel fear. Then, they’ll offer a government protection program as a solution, where you’ll be asked to withdraw your money and convert it into gold, which they’ll kindly "secure" on your behalf.

• Step No. 5- Gold Delivery: After buying gold, you’ll be instructed to send a photo of the gold bars as proof, and bring the gold to a designated drop-off location where an agent (an accomplice of the scammer) will pick it up.

In some cases, scammers continue the con after getting the first batch of gold. They’ll send more letters, promising that the gold is safe, then pressure the victim to convert more cash into gold for security. The scam will continue until the victim either runs out of money or realizes the scam.

Here’s how you can protect yourself from the sophisticated gold bar scam:

• NEVER Trust Unsolicited Pop-Ups or Calls: If a pop-up claims your device is hacked or a random caller insists they’re from the FBI, don’t get scared easily. Remember that government agencies don’t use pop-ups to contact people, nor do they demand instant action over the phone. Close that pop-up, ignore the call, and never dial the number

• ALWAYS Verify: You can verify the legitimacy of a government by searching their official websites and contact number online. Call the agency directly to verify the claim

• KNOW That the Government Don’t Ask for Gold: The FBI or any law enforcement agency will never require you to move your money into gold for "security reasons."

• WATCH for Psychological Manipulation: If you feel pressured, take a step back. Instead of rushing into a decision, talk to a trusted friend or family member.

• PROTECT Your Personal Information: Remember: scammers research their targets. So, be careful of what personal information you share online. You can also protect your information by opting out of data brokers.

• REPORT Immediately: If you receive a suspicious call or email, report it to your local authorities or the FBI through their Internet Crime Complaint Center at www.ic3.gov.

Overall, the gold bar scam thrives on fear.

The best way you can fight back is by staying calm and verifying everything before making a decision.

Remember: No legitimate government agency will ever ask you to buy gold bars and hand them over in a parking lot.

How to avoid getting scammed when buying gold?

You can avoid getting scammed when buying gold or other precious metals by asking for more details. For example, ask about the qualification of the supposed gold seller. You can also verify the seller’s by contacting the Commodity Futures Trading Commission.

What should I do if I get scammed?

If you become a scam victim, you should avoid paying more. Then, collect all the relevant documents and information, and report the scam to the authorities. Also, check your accounts and insurance coverage for any sign of unauthorized activity.

What is the gold ring scam?

A gold ring scam is where scammers approach people in public places, and claim they have found a gold ring lying on the ground. They will offer it to their target, but ask for money in return. However, the ring is either low quality gold or entirely fake.