Scammers impersonating federal agents are sending couriers with secret passwords to collect gold bars from seniors across the country, sometimes wiping out victims’ entire life savings.
In Laramie, Wyoming, authorities said an elderly woman handed approximately $131,000 worth of gold to a courier after people posing as Federal Trade Commission agents told her that her money was in danger. The scammers persuaded her to purchase $460,000 in gold, according to the Laramie Boomerang. Police opened their investigation Sept. 22.
A coin shop owner became suspicious and believed the woman was being deceived. Working with police, the owner helped authorities set up an operation that ultimately led to the arrest of Jithin Sunny, who was charged with felony theft.
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Jithin Sunny was arrested in Laramie, Wyoming, during an undercover operation tied to an alleged gold scam targeting an elderly woman, authorities said. (Albany County Sheriff’s Department)
The coin shop owner, police and the victim worked together to stage a convincing handoff. They borrowed enough one-ounce gold bars from another dealer to photograph as her supposed purchase and arranged for her credit union to temporarily process a $500,000 transaction. On Oct. 2, the woman agreed to give the gold to a courier at a Qdoba restaurant in Laramie.
The woman and the courier established the password “tulip” for the exchange. Instead of the victim, however, an undercover detective went to the restaurant and posed as her.
Sunny, a Canadian citizen, told authorities that a group had contacted him on Instagram about a delivery job in the United States. He said he believed he would be transporting antiques for wealthy clients.
After his arrest, Sunny said he was unaware of the alleged fraud. According to authorities, he claimed he had been instructed to travel to Laramie, collect a package from one person and deliver it to another courier.
The FBI has described the scheme as a “sophisticated, multi-layer scam” aimed at senior citizens.
Central banks worldwide are increasing their gold holdings as they look for protection from inflation, geopolitical conflict and economic uncertainty. (Oscar Del Pozo/AFP/Getty Images)
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A comparable case was reported in Wisconsin. According to the Marquette County Sheriff’s Office, a woman was using Facebook on a laptop when a pop-up warning claimed that her computer had a virus. The message provided a phone number that she could call to protect her personal information.
When she called, a man answered and said he was transferring her to the Federal Trade Commission’s fraud department. The callers allegedly claimed that someone had attempted to empty her savings account through a wire transfer, but that the transaction had been stopped.
The woman was allegedly told that converting her savings into gold bars would protect her assets. She was instructed to wait at home for an “officer” to collect the bars. Following those directions, she bought the gold, photographed it and placed it in bags for pickup.
The sheriff’s office said the victim spent much of Oct. 20 on the phone with a man who identified himself as “Sam.” When a sheriff’s deputy arrived at her home, she mentioned the call. “Sam” allegedly told her to end the conversation, say nothing to the deputy and call him back after the officer left.
After the call resumed, the woman was told to take the bag of gold outside and wait for a courier. Law enforcement arrested the man who arrived to collect it. He was identified as Dhavalkumar Dashrathgiri Bava and taken into custody on a felony charge of conspiracy to commit theft of more than $100,000 by false representation. The charge carries an enhanced penalty because the alleged victim was elderly.
Gold has traditionally been considered a safe-haven asset during war, inflation and market turbulence because it is not linked to the financial condition of any one country. (Matt Jelonek/Bloomberg/Getty Images)
Tom Hyslip, a former Secret Service agent and cybercrime professor at the University of South Florida, told News Media that “organized criminal gangs” operate the scheme.
“A lot of them operate out of Africa. There’s been many indictments of arrests over the years for these types of scams. And they’ve been going around for years and the criminals keep changing their MO. It used to be the Nigerian Prince. And then it went to the investment scheme or someone’s been kidnapped,” Hyslip said.
“So now they’re trying to take their time, pretend they’re from a government agency or your bank, build that rapport, build the trust, then they make the ask.”