A recently released public alert from the FBI shows how gold's reputation as an ideal way to protect your assets, like many things, can be used for good -- or for evil.

Owning gold and silver has long been a trusted method for Americans to protect their assets and balance the risk posed by owning equities, bonds, real estate and other investment options. This positive perception of the protective power of gold, though, is being used by scammers to take advantage of unsuspecting victims. The FBI recently released an alert to warn the public about scammers who may pretend to be from tech support, a bank, or even the government, in order to trick people into buying gold, then take it from them as part of an elaborate scheme. 

The FBI alert explains how the scammers direct people to purchase gold to protect their money (which is generally a smart idea, since gold has been trusted for generations to protect buying power over the long term), but then the scammers take it away from them, leaving them with nothing in return. 

Below is an excerpt from the official FBI Alert Number: I-012924-PSA. 

Scammers Use Couriers to Retrieve Cash and Precious Metals from Victims of Tech Support and Government Impersonation Scams

The FBI is warning the public about scammers instructing victims, many of whom are senior citizens, to liquidate their assets into cash and/or buy gold, silver, or other precious metals to protect their funds. Criminals then arrange for couriers to meet the victims in person to pick up the cash or precious metals. From May to December 2023, the FBI Internet Crime Complaint Center (IC3) saw an uptick in this activity with aggregated losses of over $55 million.

Step 1: Scammers Instruct Victims to Liquidate Assets into Cash and/or Buy Precious Metal
Scammers pose as tech support or US government officials. Scammers sometimes use a multi-layered approach, posing, in succession, as a technology company, a financial institution, and a US government official (e.g., the "Phantom Hacker" scam). Scammers inform victims their financial accounts were hacked or are at risk of being hacked, and, as a result, their funds need to be protected. Scammers instruct victims to liquidate their assets into cash and/or purchase gold, silver, or other precious metals. Sometimes, scammers instruct victims to wire funds to a metal dealer who will ship the precious metals to victims' homes.

Step 2: Scammers Use Couriers to Retrieve Cash and/or Precious Metals from Victim

Once victims obtain the cash and/or precious metals, the scammers send couriers to retrieve the items at victims' homes or public locations. Scammers may direct victims to authenticate the transaction with the courier using a passcode, such as the serial number of a US dollar bill. Scammers tell victims they will safeguard the assets in a protected account on behalf of the victims. In reality, victims never hear back from the scammers and lose all their money.

The FBI also released tips to help people protect themselves:
1. The US Government and legitimate businesses will never request you purchase gold or other precious metals.
2. Protect your personal information. Never disclose your home address or agree to meet with unknown individuals to deliver cash or precious metals.
3. Do not click on unsolicited pop-ups on your computer, links sent via text messages, or email links and attachments.
4. Do not contact unknown telephone numbers provided in pop-ups, texts, or emails.
5. Do not download software at the request of unknown individuals who contact you.
6. Do not allow unknown individuals access to your computer.

What to Do if You Suspect Fraud:

The FBI requests victims report these fraudulent or suspicious activities to the FBI IC3 at www.ic3.gov as quickly as possible. Be sure to include as much transaction information as possible:

1. The name of the person or company that contacted you.
2. Methods of communication used, including websites, emails, and telephone numbers.
3. Any bank account number(s) to which you wired funds and the recipient name(s).
4. The name and location of the metal dealer company and the account to which you wired funds, if you were instructed to buy precious metals.

United Patriot Coin urges members of the public to only purchase precious metals from a reputable, well-known, precious metals dealer. If any sort of fraud is suspected, we recommend that people contact the appropriate authorities, using the contact information provided in an official directory or website, rather than trusting someone contacted them proactively, and who may be impersonating an actual official entity.