Federal agencies, including the FBI, are warning consumers about a pervasive "Gold Bar" scam that has had a large impact on Americans.
How the Scam Works
Fraudsters, posing as officials from federal agencies like the FBI, FTC, IRS, or the Federal Reserve, contact individuals by mail, email, or phone. They claim the victim's identity has been compromised and that their money is at risk. They will then ask the victim to purchase gold, silver, or other precious metals with their at risk funds, promising that a “government agent” will pick up the metal for "safekeeping." The scammers often threaten legal consequences if they talk to their bank or anyone else about the situation to create urgency and fear. Unfortunately, funds lost to these scams are almost never recovered.
Red Flags to Watch For
Be aware of these critical warning signs and share with friends and family, especially with elderly individuals who may be more vulnerable:
If you think you've been contacted by a fraudster or have been scammed, here are the steps you should take:
Protect your information: Never give out your home address or agree to meet with strangers to hand over cash or precious metals.
How the Scam Works
Fraudsters, posing as officials from federal agencies like the FBI, FTC, IRS, or the Federal Reserve, contact individuals by mail, email, or phone. They claim the victim's identity has been compromised and that their money is at risk. They will then ask the victim to purchase gold, silver, or other precious metals with their at risk funds, promising that a “government agent” will pick up the metal for "safekeeping." The scammers often threaten legal consequences if they talk to their bank or anyone else about the situation to create urgency and fear. Unfortunately, funds lost to these scams are almost never recovered.
Red Flags to Watch For
Be aware of these critical warning signs and share with friends and family, especially with elderly individuals who may be more vulnerable:
- No legitimate government agency will ever instruct you to buy gold, silver, or any other asset to hold for safekeeping.
- No legitimate government official will ever tell you that your funds are not safe in a U.S. bank. Remember, your deposits with BankFive are insured by the FDIC as well as additional DIF coverage.
If you think you've been contacted by a fraudster or have been scammed, here are the steps you should take:
Protect your information: Never give out your home address or agree to meet with strangers to hand over cash or precious metals.
- Contact your bank: Our team is trained to spot suspicious transactions and be aware of recent scams. We can also place an alert on your account to prevent future fraud, and walk you through steps to take if you believe you have been scammed.
- Contact the authorities: If you met up with a “government agent”, call the police. The scammer may still be in the area, and there may be evidence for the police to collect.
- Report the crime: The Federal Trade Commission and the FBI's Internet Crime Complaint Center are both resources for reporting fraud.