Imposter scams targeting seniors are increasing (nearly fourfold since 2020) and scammers use artificial intelligence and social engineering to impersonate officials and trick you into handing over your money (1).
A Pittsburgh-area resident lost $5 million after scammers posing as government officials used a two-pronged impersonation scam to convince the victim their money was at risk, CBS News reports.
The victim initially responded to a text message about a PayPal transaction. This gave scammers an opportunity to contact the victim, posing as officials from the Federal Trade Commission (FTC). They first convinced the victim to transfer cash for safekeeping and then to convert it into gold bars (2).
This is a common tactic used in phishing scams, which can deplete the victim’s life savings, with little chance of recovering that money.
American consumers reported losing more than $12.5 billion to fraud in 2024, according to FTC data. That figure is likely much higher, since fraud goes unreported.
In 2023, about one in four (27%) people who reported fraud lost money, while in 2024 that number jumped to 38%, according to the FTC. Investment scams were the most financially devastating category ($5.7 billion), with imposter scams coming in second ($2.95 billion) (3).
Once you’re hooked, scammers will often try to escalate the scam. For example, let’s say a supposed federal agent contacts you and claims that your bank account has been compromised. The impostor will first try to convince you to immediately transfer your cash out of that account to “protect” it.
At that point, if the scam works (and if they discover that you have significant savings), they could escalate, claiming that even bank accounts are not safe and that the only way to protect your assets is to use them to buy precious metals, such as gold.
Once you purchase gold coins or bars, you will be instructed to hand them over to a courier at your home or a public place for safekeeping.
Scammers like gold because it is easily transportable and virtually untraceable. Once a courier leaves with your gold bars, it’s unlikely you’ll ever see them again. Scammers got away with more than $219 million in gold courier scams in 2024, according to the FBI Internet Crime Report 2024 (4).
While anyone can fall victim to imposter scams, older people tend to be targeted because they may be more receptive to the idea of gold as a safe haven (younger victims, on the other hand, may be more receptive to cryptocurrencies). But they also tend to have larger savings that scammers want to get their hands on.
Read more: 5 Essential Money Moves You Should Make Once You’ve Saved $50,000
It’s important to recognize the warning signs, so you can stop a scam before a courier takes your life savings.
Scammers may call you using a fake number (where the call screen disguises their identity to make it look like they are calling from a familiar number). Or, you may receive an email, text message, or even an Internet pop-up.
Scammers create a sense of urgency: your bank account is being hacked! – in the hope that you don’t think before you act.
Any request to transfer your money to “protect” it is a red flag.
The FTC promises that it will “never threaten you, tell you that you must transfer your money to ‘protect’ it, or tell you to withdraw cash or buy gold and give it to someone” (5).
If you’re asked to transfer your funds in an unusual way, such as cryptocurrency, bank transfers, payment apps, or gift cards, that’s another red flag. And gold bars? That is definitely a scam.
Using messaging can make a scam seem real.
“For many people, the fact that a natural person is involved could increase the legitimacy of a situation,” Zulfikar Ramzan, chief scientist and executive vice president of product and development at digital security company Aura (6), told AARP. But “even if someone shows up at your door, don’t trust them.” He said the couriers themselves may not even realize they are part of the scam.
If you notice any of these red flags, hang up the phone and don’t click on any links (which could install malware on your computer). If the caller says they work with the FTC, hang up and contact the FTC using a phone number you know is trustworthy. The FTC reminds people not to call the number the suspicious person gave them or the number on their caller ID.
If you believe you have been the victim of a scammer, contact local authorities immediately and report the crime to the FBI’s Internet Crime Reporting Center at ic3.gov (8). Contact your bank to protect your accounts and your identity. Keep in mind that scammers may try to contact you again to get even more money from you, so be prepared.
If you are unsure, talk to someone you trust before making any moves or handing over money or valuables. “Before you do anything else, tell someone (a friend, family member, neighbor) what happened,” the FTC recommends. “Talking about it might help you realize it’s a scam” (7).
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Federal Trade Commission (1, 3, 5, 7); CBS News (2); FBI Internet Crime Reporting Center (4); AARP (6); FBI Internet Crime Reporting Center (8)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
