Gold bar scam prompts warning: "People are losing their life savings"

A new warning has been issued by Montgomery County law enforcement partners about a gold bar scam that steals residents' life savings.

During a press conference Monday, State's Attorney John McCarthy said the widespread scam with links to China and India surfaced in Montgomery County over the last year or so, leading to at least seven victims and five arrests.

How the gold bar scam works

Those running the scam pose as federal agents who cold call or use computer pop-up ads to lure victims, typically senior citizens.

First, the thief convinces a victim to convert their money into gold bars. Then the victim meets with somebody posing as a federal agent to hand the gold over for "safekeeping" at the U.S. Department of Treasury.

"This is organized crime at the highest level," McCarthy said.

Law enforcement agencies and government officials will never contact you by phone with threats of arrest, fines or a request to collect gold or cash to safeguard your money, according to FBI Special Agent in Charge Bill DelBagno.

"People are losing their life savings, their homes, their trust, their security," DelBagno said.

Five charged in Montgomery County

So far, seven victims who range in age from 61 to 94 have been identified, and five suspects have been charged.

Collectively, approximately $6.3 million in gold bars has been taken, according to Detective Sean Petty, from the Montgomery County Police Department.

"We believe the total number of victims in our county alone is now close to 20 with millions more lost," McCarthy said.

The suspects in these various cases are being held without bond after a judge found each to be a flight risk.

Money unlikely to be recovered

Investigators said the stolen money will likely never be recovered.

"We can make the arrest, but if we can prevent an individual from losing any amount of money from a cash pick up, from a cryptocurrency scam, or from these gold bars, we would greatly appreciate it," Petty said.

If you suspect you may be in contact with a scammer, hang up and call your bank and local law enforcement agency to report it right away.