Imposter scams targeting older people are on the rise \u2014 nearly four-fold since 2020 \u2014 with fraudsters using AI and social engineering to impersonate officials and trick you into handing over your money (1).<\/p>\n
One Pittsburgh-area resident lost $5 million after fraudsters impersonating government officials used a two-pronged impersonation scam to convince the victim his money was at risk, reports CBS News.<\/p>\n
The victim initially responded to a text message about a PayPal transaction. This gave the fraudsters an opening to contact the victim, posing as Federal Trade Commission (FTC) officials. First they convinced the victim to transfer cash for safekeeping, then to convert the cash into gold bars (2).<\/p>\n
This is a common tactic used in impersonation scams, which can drain a victim\u2019s life savings \u2014 with little chance of ever getting that money back.<\/p>\n
American consumers reported losing more than $12.5 billion to fraud in 2024, according to data from the FTC. That number is likely much higher, since fraud is underreported.<\/p>\n
In 2023, about one in four (27%) people who reported fraud lost money, while in 2024 that figure jumped to 38%, according to the FTC. Investment scams were the most financially devastating category (at $5.7 billion), with imposter scams coming in at No. 2 (at $2.95 billion) (3).<\/p>\n
Once you\u2019re hooked, the fraudsters will often try to escalate the scam. For example, say you\u2019re contacted by a so-called federal agent who claims that your bank account has been compromised. The imposter will first try to convince you to immediately transfer your cash out of that account to \u201cprotect\u201d it.<\/p>\n
At that point, if the scam is working \u2014 and if they discover you have significant savings \u2014 they might escalate, claiming that even bank accounts aren\u2019t safe and that the only way to protect your assets is to use them to purchase precious metals, such as gold.<\/p>\n
Once you buy gold coins or bars, you\u2019re instructed to hand them over to a courier at your home or in a public place for safekeeping in a secure location.<\/p>\n
Fraudsters like gold because it\u2019s easily portable and virtually untraceable. Once a courier drives away with your gold bars, it\u2019s unlikely you\u2019ll ever see them again. Scammers got away with more than $219 million in gold courier scams in 2024, according to the FBI\u2019s Internet Crime Report 2024 (4).<\/p>\n
Story Continues <\/p>\n
While anyone can be a victim of imposter scams, seniors 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 cryptocurrency). But they also tend to have larger nest eggs that fraudsters want to get their hands on.<\/p>\n
Read More: 5 essential money moves to make once you\u2019ve saved $50,000<\/a><\/p>\n It\u2019s important to recognize the warning signs, so you can cut a scam short before a courier drives away with your life savings.<\/p>\n Fraudsters might call you using a spoofed number (where the call display disguises their identity so it looks like they\u2019re calling from a familiar number). Or, you might receive an email, text message or even an internet pop-up.<\/p>\n The fraudsters create a sense of urgency \u2014 your bank account is being hacked! \u2014 in hopes that you don\u2019t think before you act.<\/p>\n Any request to move your money for \u201csafeguarding\u201d is a red flag.<\/p>\n The FTC promises it will \u201cnever threaten you, say you must transfer your money to \u2018protect it,\u2019 or tell you to withdraw cash or buy gold and give it to someone\u201d (5).<\/p>\n If you\u2019re asked to transfer your funds in an unusual way, such as cryptocurrency, wire transfers, payment apps or gift cards, that\u2019s another red flag. And gold bars? That\u2019s most definitely a scam.<\/p>\n The use of couriers can make a scam feel real.<\/p>\n \u201cFor a lot of folks, the fact that there\u2019s a physical person involved might increase the legitimacy of a situation,\u201d Zulfikar Ramzan, chief scientist and executive VP of product and development at the digital security company Aura, told AARP (6). But \u201cEven if someone shows up at your doorstep, don\u2019t trust them.\u201d He said that the couriers themselves may not even realize they\u2019re part of the scam.<\/p>\n If you notice any of these red flags, hang up the phone and don\u2019t click on any links (which could install malware on your computer). If the caller says they\u2019re 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 given to you by the suspicious person, or the number from your caller ID.<\/p>\n If you believe you\u2019ve fallen prey to a fraudster, contact local law enforcement immediately and report the crime to the FBI\u2019s Internet Crime Complaint Center at ic3.gov (8). Contact your bank to protect your accounts and your identity. Keep in mind that scammers may attempt to contact you again to squeeze even more out of you \u2014 so be prepared.<\/p>\n If you\u2019re unsure, talk to someone you trust before making any moves or handing over any money or valuables. \u201cBefore you do anything else, tell someone \u2014 a friend, a family member, a neighbor \u2014 what happened,\u201d recommends the FTC. \u201cTalking about it could help you realize it\u2019s a scam\u201d (7).<\/p>\n Join 250,000+ readers and get Moneywise\u2019s best stories and exclusive interviews first \u2014 clear insights curated and delivered weekly. Subscribe now.<\/a><\/p>\n We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines<\/a>.<\/p>\n Federal Trade Commission (1<\/a>, 3,<\/a> 5<\/a>, 7<\/a>); CBS News (2)<\/a>; FBI Internet Crime Complaint Center (4)<\/a>; AARP (6)<\/a>; FBI Internet Crime Complaint Center (8)<\/a><\/p>\n This article provides information only and should not be construed as advice. 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