Episode Transcript
[00:00:00] Speaker A: Foreign.
Welcome back to another episode of behind the Scams. I'm your host, Nick, and as always, I'm joined by my wife and co host, Sue.
[00:00:12] Speaker B: Hi everyone, your favorite co host, sue here. As always, I am ready to dive into another scam. How about you, Nick? You ready to go?
[00:00:19] Speaker A: Ready as ever, Sue. Today we're unpacking a particularly heartbreaking one. It's called the Gold Grifter Scammer.
[00:00:26] Speaker B: Oh, no. Really? What's that about?
[00:00:28] Speaker A: This story revolves around Chris Owen, a 79 year old Vietnam veteran. Can you imagine, sue, after serving your country and planning for a peaceful retirement, only to fall victim to a sophisticated gold scam?
[00:00:44] Speaker B: You know what? That is so awful. It's really so sad to hear about veterans being targeted like this. So explain to our listeners what exactly happened to him.
[00:00:58] Speaker A: Well, Chris, like many others, got caught up in this growing crisis that's been defrauding countless Americans out of their savings. His story is sadly not unique. He lost a significant amount of money, his nest egg. Really? It is such a heartbreaking story.
[00:01:18] Speaker B: Wow, that's terrible. It really makes you wonder how these scammers operate and who they're targeting. So, Nick, you mentioned gold scams. Why gold specifically? What makes it such a target for these criminals?
[00:01:35] Speaker A: That's a great question, Sue. Gold has always been considered a safe haven, especially during times of economic uncertainty. It something tangible, unlike stocks or bonds, which can feel a bit abstract.
[00:01:49] Speaker B: Get that, Nick, you can hold gold in your hand. It's real from my perspective. I know. I love to hold gold in my hand.
[00:02:02] Speaker A: Bingo. That tangible nature gives it intrinsic value.
It's not just a number on a screen. It's a physical asset.
So when economies falter or inflation rises, people often turn to gold.
[00:02:18] Speaker B: So, Nick, this is just like we saw during the pandemic, right? Gold prices went up quite a bit. And they seem to still be going up.
[00:02:26] Speaker A: Exactly. And it's not just a recent phenomenon. Gold has historically been a stable monetary asset. It survived the test of time. Unlike paper currency, which can be printed endlessly, gold is finite. It's a limited resource which contributes to its value.
[00:02:47] Speaker B: That scarcity aspect definitely adds to its allure. It makes it feel more precious, more valuable. So investors feel secure knowing that regardless of what happens in the stock market, their gold will retain its worth, Right?
[00:03:02] Speaker A: Precisely. And that psychological aspect of investing in something tangible can't be overlooked. It's not just about numbers. It's about peace of mind. So you see, in uncertain times, gold shines brighter, both literally and figuratively. And that's what these scammers are exploiting now. The world of gold investment is changing rapidly. With prices soaring, more and more investors are taking a closer look at this precious metal. In 2024 alone, gold prices surged by a significant percentage.
[00:03:39] Speaker B: Wow, a significant percentage. Do you have any specific numbers on that? What kind of surge are we talking about?
[00:03:46] Speaker A: Well, the exact figures can fluctuate, but it was enough to make headlines and really draw attention to gold as an investment.
This increase has made gold a beacon, so to speak, for investors seeking stability in uncertain times. And with all the economic uncertainty we've seen recently, it's understandable why people are flocking to gold.
[00:04:07] Speaker B: So it's almost like a self fulfilling prophecy. The uncertainty drives people to gold, increasing demand, which in turn pushes the prices up even further.
[00:04:17] Speaker A: You got that right, Sue. It's a reciprocal effect. The rise in gold prices fueled by uncertainty actually creates a breeding ground for these gold grifter scams. It's a sad irony that makes sense.
[00:04:31] Speaker B: When something becomes more valuable, it naturally attracts those who want to exploit that value for their own gain. So are you saying this recent surge in gold prices has directly contributed to the increase in these gold scams?
[00:04:47] Speaker A: Absolutely. It's like a magnet for scammers. The higher the price of gold, the bigger the potential payout for these criminals. And sadly, it's often vulnerable people who fall victim.
[00:05:00] Speaker B: So let's dive into the mechanics of this scam, Nick. It's actually quite sophisticated, involving several layers of deception.
[00:05:08] Speaker A: Okay, Sue. It often starts with a seemingly innocent pop up message on your computer or a phone call. The scammer will impersonate a federal agent claiming your personal information has been compromised.
[00:05:22] Speaker B: Oh my gosh. That's terrifying. I can see how people would panic.
[00:05:26] Speaker A: That is right. Scammers prey on that fear. They create a sense of urgency, telling you that you need to act quickly to protect your assets. They'll say things like, your bank account is at risk or your identity has been stolen.
[00:05:41] Speaker B: So then what happens? What do the scammers tell you to do?
[00:05:44] Speaker A: They'll advise you to convert your savings into gold bars, claiming it's the safest way to protect your money during this supposed crisis. They'll often send what appear to be official letters from the FBI or other government agencies, complete with official looking seals and logos.
[00:06:02] Speaker B: Wow, they really go all out to make it look convincing, huh? It's scary how sophisticated these scams are becoming.
[00:06:08] Speaker A: They really do. And unfortunately, these documents are very well designed, making it incredibly difficult for people to distinguish them from Genuine government communications.
Then, after weeks of building trust and creating this sense of urgency, they instruct you to wrap the gold in something inconspicuous like Christmas paper and hand it over to a courier.
[00:06:34] Speaker B: A courier? So they don't even show up themselves?
[00:06:37] Speaker A: Nope. They use these recruited individuals, often unaware of the scam's full extent, to collect the gold.
These couriers are promised a small fee for their services. They think they're just picking up a package. In reality, they're playing a crucial role in this elaborate criminal operation.
[00:06:57] Speaker B: It's just awful. So many layers of deception and so so many people being used and manipulated. It makes me wonder about the role of technology in all of this. Are these scams primarily facilitated through the Internet and computers, like those pop up ads you mentioned?
[00:07:17] Speaker A: And it's not just the mechanics of the scam itself, Sue. It's the emotional vulnerability of the victims that really makes them susceptible. The this is especially true for seniors.
[00:07:30] Speaker B: That makes sense. Seniors are often targeted in scams, aren't they? I am so curious, Nick. Why are seniors so often preyed upon by scammers?
[00:07:40] Speaker A: Well, there are a few reasons. Many seniors didn't grow up with technology, so they may not be as savvy about recognizing online scams. They might be more trusting of authority figures, which makes them vulnerable to impersonation scams like this one.
[00:07:57] Speaker B: Right. And I imagine the isolation that some seniors experience can also make them more susceptible to manipulation. If someone is lonely, a friendly voice on the phone, even if it's a scammer, can be very appealing.
[00:08:12] Speaker A: Absolutely. And on top of that, there's been a demographic shift in gold buying. More and more seniors are investing in gold as a way to secure their retirement funds and protect against inflation.
[00:08:26] Speaker B: So the scammers are capitalizing on this trend. They know that seniors are increasingly interested in gold and they're using that to their advantage. It's like they're specifically targeting this demographic.
[00:08:40] Speaker A: Precisely. They know seniors might be looking for ways to protect their savings, and they exploit that. In Chris's case, after losing his wife and with the added stress of the pandemic, his emotional vulnerability made him a prime target for this type of scam. He was grieving, and the scammers preyed on his desire to secure his future.
[00:09:04] Speaker B: It's heartbreaking. He was just trying to do what he thought was best. And these criminals took advantage of him during a difficult time in his life.
[00:09:13] Speaker A: And sadly, his story is not unique. There are countless others who have fallen victim to these gold grifter scams in 2024 alone victims reported losses totaling a staggering $126 million.
[00:09:30] Speaker B: Oh my goodness. That's a horrifying number. It's just so sad that people prey on others vulnerabilities like this. It really underscores the importance of education and awareness, especially for seniors.
[00:09:45] Speaker A: It is. And thankfully, law enforcement is stepping up their efforts to combat these scams. The FBI in particular has been actively investigating these gold grifter schemes.
[00:09:56] Speaker B: That's good to hear. What are they doing specifically? Have there been any arrests?
[00:10:00] Speaker A: Yes, there have been numerous arrests, although the exact figures aren't always released. To protect ongoing investigations, they're focusing on several areas, including, of course, investigating the scams themselves, tracking down the perpetrators, and trying to recover the stolen funds.
[00:10:21] Speaker B: And are they specifically targeting the ringleaders, the ones masterminding these operations?
[00:10:27] Speaker A: They are. It's complex, often involving international networks. But one key strategy they're using is sting operations. Catch the couriers. Remember, these are the individuals who physically collect the gold from the victims.
[00:10:44] Speaker B: Oh, right. Like in Chris Owens case, they set up a sting to try and catch the person who took his gold. Nick, can you briefly explain what a sting is and whether you were involved in any during your law enforcement career?
[00:10:59] Speaker A: Sure. A law enforcement sting is a planned operation designed to catch criminals in the act by using deception or undercover methods.
Officers often pose as potential victims, buyers or criminals to gather evidence and arrest suspects involved in illegal activities such as fraud, drug trafficking or scams. And yes, I was involved in numerous sting operations during my career, both as a case agent and in an undercover capacity. I can tell you from my own experience, the law enforcement sting is a fantastic tool and often leads to successful arrests and prosecutions.
[00:11:37] Speaker B: And fortunately, in this case, they were successful. Owen went undercover, wore a wire, and helped the authorities identify and arrest the courier. That courier was later charged with conspiracy to commit wire fraud.
[00:11:53] Speaker A: Wow. So even though they often can't recover the actual gold, they are making arrests and holding people accountable. That's reassuring. So, sue, can you please tell our listeners what other strategies apart from sting operations are being implemented to combat this horrific scam?
[00:12:13] Speaker B: Yes, education and public awareness are huge priorities. They're working with local communities, particularly senior centers, to educate people about these scams and how to avoid becoming a victim.
[00:12:27] Speaker A: So, sue, knowing all this, what can our listeners do to protect themselves? There are some crucial steps everyone can take to avoid becoming a victim of these scams.
[00:12:38] Speaker B: This is so important, Nick. I'm sure our listeners are wondering what practical steps they can take. What's the first line of defense?
[00:12:46] Speaker A: Well, a big one is verifying the source of any communication you receive. Whether it's a phone call, email, text message, or even a pop up on your computer. Never assume it's legitimate without checking. If someone claims to be from a bank, government agency, or any institution, take the time to verify their identity independently.
[00:13:07] Speaker B: So don't just take their word for it. What's the best way to verify if.
[00:13:11] Speaker A: It'S a company or organization? Look up their official contact information online yourself. Don't use any contact details provided in the suspicious communication. Call them directly using the number you find, and ask if they actually contacted you.
[00:13:28] Speaker B: That's a great point, Nick. It's so easy to just click a link or call a number provided in a message. But that's exactly what scammers are hoping for.
[00:13:37] Speaker A: Precisely. Another key thing is to be incredibly cautious with your personal information online. Never share sensitive details like your Social Security number, bank account numbers, passwords, or login credentials in response to unsolicited requests. Legitimate organizations will never ask for this information via email, text or phone.
[00:14:01] Speaker B: Right? If you get an email or text asking for this information, it's a huge red flag. Delete it immediately.
[00:14:08] Speaker A: Absolutely. Ansu. This might seem obvious, but it's worth repeating. If an offer sounds too good to be true, it probably is.
Scammers often lure people in with promises of guaranteed returns, risk free investments, or unbelievably low prices. Don't fall for it.
[00:14:28] Speaker B: It's natural to be tempted, especially if you're facing financial difficulties or looking for a quick win. But skepticism is key. If something seems off, trust your gut.
[00:14:40] Speaker A: You're right, Sue. Way too many scam victims forget to just trust their gut. If you're unsure about anything, talk to a trusted friend, family member, or financial advisor before making any decisions. A second opinion can be invaluable. And always remember, never feel pressured to make a quick decision.
Scammers often create a sense of urgency to prevent you from thinking clearly. Take your time, do your research, and don't let anyone rush you.
[00:15:11] Speaker B: So, in short, Nick, it's all about being proactive, informed and skeptical. Verify everything, protect your information, and trust your instincts. These are simple steps, but they can make a world of difference in protecting yourself from these scams.
[00:15:29] Speaker A: And sue, we can't talk about scams these days without addressing the elephant in the room. Technology. It's become such a powerful tool for scammers.
[00:15:39] Speaker B: Unfortunately, it really has. It's so disturbing how they exploit technology to deceive people. We've talked about Verifying information. But how does technology play into that, Nick?
[00:15:50] Speaker A: Well, think about pop up scams. These are designed to look like legitimate notifications, often warning you about a security breach or a problem with your computer. They might say your bank account is at risk or your personal information has been compromised.
[00:16:07] Speaker B: Oh, I've seen those. They look so official, it's easy to see how people fall for them.
[00:16:11] Speaker A: They do look so real. And they're designed to trigger that immediate panic response.
You see that alarming message and you want to fix the problem now. So you click the link or call the number provided without even thinking twice. Boom. That's when they get you.
[00:16:32] Speaker B: It's scary how convincing they can be. They often mimic the look and feel of real websites or security alerts.
[00:16:40] Speaker A: Absolutely. They're getting more and more sophisticated. And unfortunately, seniors are particularly vulnerable to these types of scams.
[00:16:48] Speaker B: Why is that, Nick?
[00:16:49] Speaker A: Well, as I explained earlier, many seniors didn't grow up with this technology. They may be less familiar with the warning signs of online scams or how to differentiate between a genuine alert and a fake one. Plus, isolation can make them more susceptible to manipulation.
They might be more likely to engage with someone who seems helpful or offers a solution to a problem. Even if it's a scam.
[00:17:17] Speaker B: That makes sense. It's heartbreaking to think of people losing their life savings because they clicked on the wrong link.
[00:17:24] Speaker A: It really is. And it's not just about clicking links. Technology also plays a role in how these scams affect our decision making. Scammers understand the psychology of fear and urgency, and they use it to cloud our judgment. When we're faced with a perceived threat, we tend to react emotionally rather than logically.
[00:17:44] Speaker B: It's like fight or flight kicks in and we just want to do something, anything to resolve the issue.
[00:17:49] Speaker A: It comes down to plain old human nature, sue, and that's what makes us vulnerable. We're not thinking clearly, we're just reacting. So it's crucial to remember that even when faced with a tech related problem or alert, take a deep breath, don't rush, and verify everything before you act.
[00:18:17] Speaker B: You know, Nick, one of the most powerful tools we have against these scams is something we haven't talked much about yet. Community.
The power of shared experiences and open conversations can really make a difference.
[00:18:31] Speaker A: That's an interesting point, Sue. I hadn't thought about it that way. In your opinion, how does that work?
[00:18:38] Speaker B: Well, scammers thrive on secrecy and isolation. They want their victims to feel alone and ashamed so they're less likely to report the crime or talk about it with others. But when we share our experiences, we break down those walls of silence and create a network of support and awareness.
[00:19:00] Speaker A: So it's like a neighborhood watch but for scams?
[00:19:02] Speaker B: Exactly. If one person shares their story about being targeted by a gold grifter scam, it can alert others in the community to be on the lookout for similar tactics. It's like a ripple effect, spreading awareness and empowering people to protect themselves.
[00:19:21] Speaker A: Well, Sue, I think we've covered a lot of ground today. From the heartbreaking story of Chris Owen to the intricate mechanics of these gold grifter scams. It's clear that this is a serious issue.
[00:19:34] Speaker B: It really is, Nick. And it's so important for everyone, especially our senior loved ones, to be aware of these tactics and know how to protect themselves.
[00:19:43] Speaker A: Absolutely. Remember folks, vigilance is key. Always verify information, Be wary of unsolicited offers, and if something feels too good to be true, it probably is. Don't hesitate to reach out to trusted sources like family, friends or law enforcement if you have any doubts.
[00:20:04] Speaker B: And never ever feel ashamed or embarrassed if you think you've been scammed. Reporting these crimes is crucial to helping authorities catch these criminals and prevent others from falling victim.
[00:20:19] Speaker A: I am so glad you brought up the point about not feeling ashamed or embarrassed. I have spoken with many scam victims who call or email our non profit and the common denominators among most of these victims are feelings of shame and embarrassment. They feel lost and are constantly questioning their own common sense.
[00:20:39] Speaker B: You are so right, Nick. And one final point before we close this episode out, let's all try and avoid victim blaming. This holds true for any scam victim, fraud victim or victim of any type of crime. Victim blaming discourages individuals from coming forward, making it harder to hold perpetrators accountable and prevent future harm. It also adds to the emotional distress of victims, shifting responsibility away from those who commit wrongdoing and undermining efforts to foster a supportive, just society.
