Kris Owen, a 79-year-old Vietnam veteran, had planned to spend his retirement in Indiana with his wife, Karen. But after she lost her battle with breast cancer, he was left heartbroken and vulnerable.
“All of our plans for travel and everything kind of went out the window,” Owen told ABC News.
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In 2023, Owen received a pop-up message on his computer, warning him that his personal information had been compromised and instructing him to call a phone number. That call led him to purchase $80,000 worth of gold bars and send them to a supposed federal agent — money he would never see again.
Owen’s experience is not uncommon. Scammers rely on fear to manipulate their victims, often using pop-up messages, phone calls or emails that appear legitimate. But knowing how these scams work can help prevent others from falling into the same trap.
A new scam to be on alert for
Concerned that his personal information had been stolen, Owen contacted the number on his screen. On the other end of the line was a scammer posing as a federal agent. He followed their instructions, converting some of his savings to gold bars — $80,000 worth.
“They told me to wrap it in a box — with Christmas wrap paper,” Owen said.
He then took the box to a supermarket parking lot near his home, expecting to hand it over to a federal agent. When a car pulled up next to him, Owen placed the gold in the back seat, and the driver sped away.
Soon after, Owen received another call from the supposed federal agents, demanding more money. By then, he had grown suspicious and contacted law enforcement.
The FBI and a local Indiana police department worked with Owen, having him go undercover to arrange another handoff. This time, he wore a wire and delivered a box filled with fake money. Law enforcement agents moved in, apprehending the suspect and charging him with conspiracy to commit wire fraud and two counts of wire fraud.
However, investigators soon realized the person they arrested was simply a courier — someone hired to pick up gold bars or cash, not the mastermind behind the operation.
"I have never seen a scam to this magnitude," said Sean Petty, a detective for the Montgomery County Police Department, who has investigated numerous gold bar scam cases in Maryland.
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How to protect yourself from financial fraud
Financial fraud is rampant. A recent Bankrate survey found that 34% of Americans have experienced it, and among them, 37% have lost money.
Gold scams, in particular, have picked up in recent years. According to the FBI, Americans lost $126 million to them in 2024 alone.
Criminals often prey on victims using fear tactics combined with reassuring language to gain their trust. For example, a person may receive a text or email claiming their financial identity has been compromised. Panicked, they may contact a seemingly helpful "federal agent," who assures them that following instructions will resolve the issue.
To avoid falling victim to these scams:
- Never click on links you get by email or text.
- Do not respond to unsolicited texts, emails, or phone calls.
- Know that federal agents will not email, call, or text you out of the blue or ask for money, gold or gift cards.
- Be skeptical of requests to drop off valuables in a random location.
Older Americans are particularly vulnerable to financial fraud. So it’s important to educate loved ones on how to recognize scams. Encourage them to check with a trusted family member before responding to suspicious messages.
Gold scams don’t always play out as they did for Owen. You may run into a situation where someone contacts you offering to sell you gold, whether for a near-term investment or to hold in your IRA as an investment for your future.
Gold IRAs are legitimate — but only when set up through a reputable broker. Likewise, buying gold as an investment is possible, but you should always verify the source. As a rule of thumb: never respond to unsolicited investment offers.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
