Alert: Rising Threat of Courier Fraud Targeting Gold Buyers
The National Coin & Bullion Association (NCBA), in partnership with the Numismatic Crime Information Center (NCIC), is issuing a public service announcement to warn dealers and consumers about a sophisticated scam known as “courier fraud” that is targeting the gold and bullion markets.
What is Courier Fraud?
Courier fraud is a scheme where criminals impersonate law enforcement or bank officials to manipulate victims into transferring their savings into gold or other valuables. Once the gold is purchased, the perpetrators arrange for it to be delivered to them under the pretense of “safekeeping,” only for it to be stolen.
How It Works
The scam typically begins with a phone call from someone claiming to be a police officer, bank official, or government agent. The caller may use easily accessible information like the victim’s name and address to seem legitimate. They might instruct the victim to verify their identity by calling a specific number, but in reality, the scammer keeps the line open, ensuring the victim only speaks with an accomplice.
Once trust is established, these scammers create a sense of urgency and fear, claiming that the victim’s bank account is compromised or that they are under investigation for serious crimes like drug trafficking or money laundering. The victim is then persuaded to withdraw large sums of money to purchase gold, which the “officials” will arrange to collect. They promise the gold will be returned once the investigation is complete, but the victim never sees it again.
Recent Cases
Stephen Flood, director of GoldCore, recently reported that this scam, initially prevalent in the UK, has now surfaced in the United States. In one case, a victim in the U.S. lost $400,000 to fraudsters posing as Federal Trade Commission (FTC) officials. In another instance, 17 residents in Montgomery County, Maryland, were defrauded of over $3 million in gold bars. These cases highlight the growing risk and the need for increased vigilance.
Red Flags and How to Protect Yourself
Unexpected Contact: Be wary of unsolicited phone calls or emails from someone claiming to be your bank or a government agency, especially if they ask for personal information or instruct you to purchase gold.
Urgency and Threats: Scammers often use threats of arrest or asset seizure to coerce victims into acting quickly. Legitimate authorities will never threaten you or demand immediate action over the phone.
Courier Collection: No law enforcement agency will send a courier to collect money, gold, or any other valuables. If you are asked to hand over anything, it's a scam.
Verify Independently: If you receive a suspicious call, hang up and call your bank and local police using a verified number, preferably from a different phone line.
Impact on the Industry
The surge in these scams is not only resulting in financial losses for individuals but also eroding trust in legitimate bullion dealers. It is crucial for dealers to educate their clients about these dangers and to remain vigilant for signs that a customer might be under duress.
What to Do If You Suspect a Scam
What is Courier Fraud?
Courier fraud is a scheme where criminals impersonate law enforcement or bank officials to manipulate victims into transferring their savings into gold or other valuables. Once the gold is purchased, the perpetrators arrange for it to be delivered to them under the pretense of “safekeeping,” only for it to be stolen.
How It Works
The scam typically begins with a phone call from someone claiming to be a police officer, bank official, or government agent. The caller may use easily accessible information like the victim’s name and address to seem legitimate. They might instruct the victim to verify their identity by calling a specific number, but in reality, the scammer keeps the line open, ensuring the victim only speaks with an accomplice.
Once trust is established, these scammers create a sense of urgency and fear, claiming that the victim’s bank account is compromised or that they are under investigation for serious crimes like drug trafficking or money laundering. The victim is then persuaded to withdraw large sums of money to purchase gold, which the “officials” will arrange to collect. They promise the gold will be returned once the investigation is complete, but the victim never sees it again.
Recent Cases
Stephen Flood, director of GoldCore, recently reported that this scam, initially prevalent in the UK, has now surfaced in the United States. In one case, a victim in the U.S. lost $400,000 to fraudsters posing as Federal Trade Commission (FTC) officials. In another instance, 17 residents in Montgomery County, Maryland, were defrauded of over $3 million in gold bars. These cases highlight the growing risk and the need for increased vigilance.
Red Flags and How to Protect Yourself
Unexpected Contact: Be wary of unsolicited phone calls or emails from someone claiming to be your bank or a government agency, especially if they ask for personal information or instruct you to purchase gold.
Urgency and Threats: Scammers often use threats of arrest or asset seizure to coerce victims into acting quickly. Legitimate authorities will never threaten you or demand immediate action over the phone.
Courier Collection: No law enforcement agency will send a courier to collect money, gold, or any other valuables. If you are asked to hand over anything, it's a scam.
Verify Independently: If you receive a suspicious call, hang up and call your bank and local police using a verified number, preferably from a different phone line.
Impact on the Industry
The surge in these scams is not only resulting in financial losses for individuals but also eroding trust in legitimate bullion dealers. It is crucial for dealers to educate their clients about these dangers and to remain vigilant for signs that a customer might be under duress.
What to Do If You Suspect a Scam
- Report suspicious activity immediately to the NCIC at www.numismaticcrimes.org or the FBI’s Internet Crime Complaint Center at www.ic3.gov.
- Stay informed about the latest fraud tactics and share this information with others in the industry to help prevent further losses.