The Minnesota Department of Commerce Senior Fraud Team has reported an increase in cases where older adults are being manipulated into purchasing gold bars and handing them over to criminals. These scams can result in devastating financial losses for the victims.
How the Scam Works
Instead of asking victims to wire money directly to a scammer or withdraw large amounts of cash, fraudsters are now convincing individuals to purchase gold bars as part of the scam.
The victim is instructed to wire funds to a legitimate gold or precious metals company and purchase gold bars in their own name. Because the purchase appears legitimate and the gold dealer is often a real business, the transaction may not initially raise concerns.
The victim then receives the gold bars and is directed to either:
  • Meet a courier in a public location, or
  • Allow a courier to pick up the gold from their home
Once the gold is handed over, it is gone, along with the victim’s money.
Red Flags to Watch For
Be cautious if you or a loved one are asked to:
  • Purchase gold bars or precious metals for “safekeeping”
  • Move retirement or savings funds into gold because of an urgent threat
  • Keep the transaction secret from family members or your bank
  • Meet a courier or third party to transfer gold bars
  • Act immediately due to a supposed government investigation, investment opportunity, or emergency
How to Protect Yourself
  • Slow down and verify the story before sending money
  • Talk with a trusted family member or friend
  • Contact your financial institution if something feels unusual
  • Be wary of anyone creating urgency or pressuring you to act quickly
  • Never hand gold, cash, or other valuable assets to someone you do not personally know and trust
If You Suspect a Scam
If you believe you or someone you know may be involved in a gold bar scam, contact your financial institution immediately and report the situation to local law enforcement.
And remember, a legitimate government agency, law enforcement organization, or financial institution will never require you to buy gold bars and hand them over to a courier.