New York's attorney general, Letitia James, announced on Friday that fraudsters have stolen more than $100m from victims, mostly older adults, over the past two years through an elaborate scheme involving gold bars. The scam typically begins with a fake computer warning and ends with victims physically handing over gold coins or bars to couriers posing as law enforcement.
According to the attorney general's office, the fraud starts when a victim receives a pop-up notification falsely claiming their computer or bank account has been hacked. The message includes a phone number, and once the victim calls, the scammer persuades them to grant remote access to their device, giving criminals a route into their financial accounts and online banking.
From there, the victim is passed to a second scammer impersonating a police officer or federal agent, who warns them that their savings are compromised. To supposedly keep the money safe, the victim is instructed to withdraw their funds, convert the cash into gold bars or coins, and hand the metal over to "authorities" for safekeeping. Victims are told to keep the matter secret, and a courier is then sent to their home to collect the gold.
James condemned the tactic in a statement:
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.
New York is far from the only place this has happened. Similar reports have surfaced elsewhere in the country, including a case in July in Washington DC, where scammers posing as federal agents contacted an 85-year-old man by phone and email, warning him his money was at risk and urging him to buy gold for protection. When the man attempted to purchase $200,000 worth of gold, the dealer recognised the scam and alerted police, who then arrested the suspects when they showed up at the victim's home to retrieve it.
How widespread has the scam become?
The scale of the fraud appears larger than initially described by state officials. The New York Police Department says it has been investigating the scheme since May 2024 in coordination with Homeland Security, the IRS and police departments in other states, according to a national news report. Police say hundreds of victims have been affected, with some individual losses reaching as high as $9m and $5.8m in single cases, per the same report. Separately, the NYPD's Cyber Investigations Group says it has probed more than 100 gold-bar scam cases over the past two years, according to a local news outlet. On Long Island, Suffolk County officials say more than a dozen seniors have already been targeted, prompting local warnings and proposed retail safeguards, according to a regional news report. The FBI has also flagged similar schemes hitting victims in Tampa, Florida, and Columbia, South Carolina, according to another regional report.
FBI Special Agent Ryan Braley has stressed that legitimate government agencies and businesses will never ask people to buy gold or other precious metals as a way of protecting their money, according to a broadcast news report. The bureau says adults aged 60 and older lost a combined $3.4bn to scams last year, illustrating why this age group remains such a frequent target, per the same report.
This pattern of fraud fits into a broader wave of scams exploiting technology and impersonation tactics. Separate reporting has detailed how AI-driven scams are increasingly used to manipulate victims in romance and financial fraud cases, while other victims have lost significant sums after scammers impersonated bank representatives over the phone.
What should people do to protect themselves?
The attorney general's office urges people never to call a phone number provided in an unsolicited pop-up, text message or email, and never to grant remote access to their computer to someone they don't know. Individuals should also refuse to withdraw or hand over money from a bank account simply because someone on the phone has told them to. Anyone told there is a problem with their bank account should instead contact their financial institution directly to verify the claim, and anyone who suspects they've been targeted or victimized is encouraged to contact law enforcement.
The office's announcement explained why these scams tend to work:
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.
What happens next?
Investigators say the effort to unwind the scheme is ongoing. Police have recovered some gold bars through search-warrant operations and hope the proceeds can eventually go toward restitution for New York victims, according to the national news report. Meanwhile, lawmakers in Suffolk County have proposed a 48-hour hold on first-time bullion purchases exceeding $50,000, a measure that could be adopted as the next policy response, according to the regional news report. Local officials have also said gold shops in the county will soon be required to post warning signs about the scam, per the same report.
Key Facts
- New York's attorney general says scammers have stolen more than $100m from victims, mostly seniors, over the past two years.
- The scam involves a fake computer-hack alert, remote access to victims' devices, and a fraudulent "law enforcement" instruction to convert savings into gold.
- The NYPD has investigated the scheme since May 2024, with hundreds of victims and individual losses as high as $9m in single cases.
- Suffolk County has proposed a 48-hour hold on large first-time bullion purchases and mandatory warning signs in gold shops.
- The FBI says adults 60 and older lost $3.4bn to scams last year nationwide.
