A Washington senior lost $624K in life savings to a gold bar scam. How the growing scam works

Yahoo

30-01-2025

A con artist swindled a senior in Lynwood, Washington, out of $624,000 in life savings in a gold bar scam investigators suspect could be part of a larger ring.
Fox 13 Seattle reports that 42-year-old Zhichao Huang was extradited from Los Angeles County back to Washington to face charges in the crime — one that has become increasingly common in recent years.
'You would think that there would be red flags for any reasonable person to recognize, but what people don't realize is smart people get scammed as well,' Deputy Carly Cappetto of the Pierce County Sheriff's Office.
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The 74-year-old victim got caught in the scam when she responded to a computer pop-up that appeared to be from Charles Schwab — the investment firm she and her husband use. She called the number and spoke to someone who claimed to be a federal agent. She was told her bank account had been hacked.
Over several weeks, the scammer and his accomplices convinced the woman to sell $624,711 worth of stocks and IRA contributions and convert all that money into gold bars.
Then the victim was told to proceed to a parking lot and hand over the gold bars to a man claiming to be a federal agent and wearing a gun.
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While she did hand over the gold bars before he drove off, the victim wisely took a picture of the man and the car he was driving at the meetup. She later shared pictures with police, who arrested Zhichao Huang in connection with the case.
The FBI's Internet Crime Complaint Center has seen a spike in similar gold bar scams, which target vulnerable seniors. Between May and December 2023, victims lost more than $55 million to this kind of fraud, the center reports.
The Lynwood case bears a striking similarity to con jobs occurring all over the country, from Washington to Georgia, where a man was arrested for extorting over $1 million from senios.
Investigators are probing whether the scams could be part of a larger ring. Regardless of where the scams take place, they follow the same playbook:
A victim sees a fake pop-up that appears to be from a trusted bank or firm, advising the victim to call a number for further instructions.
The victim speaks to someone claiming to be a federal agent or customer service rep who tells the victim their accounts have been hacked or are at risk.
The victim is told to convert all their cash and investments into a tangible asset like gold.
The victim is then directed to hand over the gold at a neutral location like a parking lot and assured their possessions will be safeguarded.
After the hand-off, victims are pressured not to tell anyone, or they could be arrested.
Fraudsters disappear with the valuables.
These schemes are particularly insidious because they rely on elaborate lies, extended manipulation, and face-to-face interactions, leaving victims with nothing.
Montgomery County State's Attorney John McCarthy visited seniors in Silver Spring, Maryland to advise them on how to prevent these scams.
His tips: Never respond to calls or texts from strangers—or to unsolicited pop-ups. And don't make big financial decisions without at least two people you trust.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.