New York State Police are warning residents, particularly older adults and their families, about a growing financial scam that combines fraudulent cryptocurrency investments with demands to purchase gold bars or coins.
Troop E officials said scammers are using increasingly sophisticated tactics to convince victims to liquidate savings, withdraw large amounts of cash or buy gold under the false promise that the assets will be converted into cryptocurrency or invested on the victim’s behalf.
Police said the scams often begin with an unsolicited text message, social media contact or online friendship.
The scammer may spend days or weeks building trust before introducing what appears to be a highly profitable investment opportunity. Victims are then directed to fraudulent websites or applications that falsely show large investment returns.
State Police said a growing variation of the scheme involves instructing victims to purchase gold bars or coins from local dealers instead of sending money electronically.
Victims are then told to give the gold to a courier or ship it to an address provided by the scammer.
Once the gold is surrendered, police said it is nearly impossible to recover.
State Police emphasized that legitimate investment companies, financial institutions, government agencies and law enforcement agencies will not instruct someone to purchase gold bars as an investment, hand cash or precious metals to a courier or transfer cryptocurrency in order to protect assets.
Authorities also warned residents to be suspicious of anyone who tells them to keep financial transactions secret from family members or bank employees, or to lie to bank personnel about the purpose of a withdrawal.
Anyone who believes they have been targeted should stop communicating with the suspected scammer and avoid sending additional money or assets.
Victims should also contact their financial institution and notify State Police or their local law enforcement agency.
State Police are also encouraging victims to report online investment scams to the FBI’s Internet Crime Complaint Center.
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