(Image credit: Getty Images)
Economic uncertainty and market volatility fueled a surge in gold demand in 2025. According to the World Gold Council, global gold demand surpassed 5,000 tons for the first time as investors sought ways to diversify portfolios and protect their wealth.
But the sharp rise in gold’s popularity has also created new opportunities for criminals. Law enforcement agencies are warning about a growing gold bar scam that exploits investor fears and economic uncertainty. International fraud rings are using call centers and courier networks to impersonate federal officials and pressure victims into handing over gold.
Recent investigations show these schemes have caused tens of millions of dollars in losses worldwide. As scammers grow more sophisticated, awareness and education remain key to helping consumers avoid becoming victims.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more – straight to your e-mail.
Profit and prosper with the best of expert advice – straight to your e-mail.
How the gold bar scam typically works
Victims typically receive unsolicited contact claiming there is an urgent issue that requires immediate action. The scammer may say the victim’s bank account, Social Security number or computer has been compromised, or claim the victim is connected to criminal activity or theft.
Scammers often impersonate federal agencies, such as the FBI, Treasury, FTC or Social Security Administration. In some cases, they may pose as representatives from a technology company or financial institution, claiming they can help resolve the problem.
They pressure victims to act quickly and keep the situation confidential. Targets are instructed to withdraw money, purchase gold bars from a legitimate dealer and then hand over the gold or cash to a courier who is part of the scheme, often under the pretense of safekeeping.
These scams rely heavily on fear and urgency to override rational decision-making. When victims feel frightened or rushed to resolve a supposed threat, they are more likely to overlook warning signs they might otherwise recognize.
Who is most often targeted
Older Americans are disproportionately affected by gold bar scams, and victims are often financially stable or at or near retirement age. Scammers frequently assume older adults have substantial savings or retirement funds that can be used to purchase gold bars.
Some victims may also feel embarrassed about being targeted, which can make them less likely to report the crime, according to the National Council on Aging.
Scammers often exploit trust in government and authority figures by impersonating officials and presenting themselves as helpers. They rely on sophisticated scripts and multi-step schemes that can make the fraud difficult for victims to recognize.
Why gold is attractive to criminals
(Image credit: Getty Images)
Gold is not only attractive to investors during economic uncertainty, it is also appealing to criminals. Gold is highly portable and, once transferred, can be difficult to trace. Scammers can quickly melt or resell gold, while electronic transfers or large amounts of cash are often easier for authorities to track.
When scammers convince victims to pay with gold, the payment is typically less reversible than a bank transfer or credit card transaction, increasing the likelihood that the scam will succeed. Criminals are also increasingly combining gold with cryptocurrency and wire transfers, since these payment methods are fast and difficult to trace.
Warning signs consumers should never ignore
If you ever receive communication pressuring you to quickly resolve an issue, stop and carefully review the situation.
These are warning signs you should never ignore, no matter how urgent the individual contacting you says the matter is:
- Claiming your money is unsafe in your bank: Scammers may say your bank account has been compromised and insist you withdraw your money immediately to protect it.
- Requesting you move money to a secure government account: You may be told to transfer a large amount of money to a supposed government account for safekeeping.
- Instructing you to buy precious metals: Scammers may direct you to withdraw cash and use it to purchase precious metals, such as gold bars, from a legitimate retailer.
- Demanding secrecy: Scammers often claim it is critical that you keep the situation confidential. They may threaten arrest or legal consequences if you speak with family members, financial institutions or law enforcement.
- Requesting delivery of valuables: After persuading you to buy gold, scammers may instruct you to hand over the valuables or meet with a courier who will take them for safekeeping.
Get personal finance insights straight to your inbox. Subscribe to Kiplinger’s newsletter, A Step Ahead.
If you are contacted or believe you are being targeted, hang up immediately and stop all communication with the suspected scammer. Then contact law enforcement or your financial institution as soon as possible.
Always verify contact information independently before reaching out. Use official websites or trusted sources to find phone numbers and email addresses, and never rely on contact details provided by the caller.
You should also report suspected scams to the FBI or the FBI Internet Crime Complaint Center. Provide as much detail as possible, including the caller’s phone number, the date and time of contact and what the scammer asked you to do.
Before making any financial decisions, consider speaking with a family member or trusted financial adviser. Scammers often rely on fear and urgency to pressure victims into acting quickly. A trusted second opinion can help you identify warning signs you may overlook when feeling stressed or rushed.
The broader rise of impersonation and investment scams
Government and technology impersonation scams are among the fastest-growing types of fraud. According to the Federal Trade Commission, adults age 60 and older reported losing millions of dollars in 2024 to scammers posing as government agencies and businesses.
Among older adults who lost more than $100,000 in these schemes, total losses reached $445 million in 2024, compared with $55 million in 2020.
These scams are becoming more widespread and are expanding beyond digital theft to include physical assets, such as gold bars. Awareness remains one of the most effective ways to protect yourself from becoming a victim.
Never assume that unsolicited communication is legitimate, and always watch for red flags and warning signs. Most importantly, avoid making rushed financial decisions under pressure. Instead, contact the government agency or business directly using verified contact information to confirm whether the communication is valid.
