Pittsburgh resident lost $5 million to scammers posing as government officials — here’s how to spot the scheme

The victim initially responded to a text message about a PayPal transaction. This gave the fraudsters an opening to contact the victim, posing as Federal Trade Commission (FTC) officials. First they convinced the victim to transfer cash for safekeeping, then to convert the cash into gold bars (2).

This is a common tactic used in impersonation scams, which can drain a victim’s life savings — with little chance of ever getting that money back.

How imposter scams work

American consumers reported losing more than $12.5 billion to fraud in 2024, according to data from the FTC. That number is likely much higher, since fraud is underreported.

In 2023, about one in four (27%) people who reported fraud lost money, while in 2024 that figure jumped to 38%, according to the FTC. Investment scams were the most financially devastating category (at $5.7 billion), with imposter scams coming in at No. 2 (at $2.95 billion) (3).

Once you’re hooked, the fraudsters will often try to escalate the scam. For example, say you’re contacted by a so-called federal agent who claims that your bank account has been compromised. The imposter will first try to convince you to immediately transfer your cash out of that account to “protect” it.

At that point, if the scam is working — and if they discover you have significant savings — they might escalate, claiming that even bank accounts aren’t safe and that the only way to protect your assets is to use them to purchase precious metals, such as gold.

Once you buy gold coins or bars, you’re instructed to hand them over to a courier at your home or in a public place for safekeeping in a secure location.

Fraudsters like gold because it’s easily portable and virtually untraceable. Once a courier drives away with your gold bars, it’s unlikely you’ll ever see them again. Scammers got away with more than $219 million in gold courier scams in 2024, according to the FBI’s Internet Crime Report 2024 (4).

While anyone can be a victim of imposter scams, seniors tend to be targeted because they may be more receptive to the idea of gold as a safe haven (younger victims, on the other hand, may be more receptive to cryptocurrency). But they also tend to have larger nest eggs that fraudsters want to get their hands on.

Recognizing the red flags

It’s important to recognize the warning signs, so you can cut a scam short before a courier drives away with your life savings.

Fraudsters might call you using a spoofed number (where the call display disguises their identity so it looks like they’re calling from a familiar number). Or, you might receive an email, text message or even an internet pop-up.

The fraudsters create a sense of urgency — your bank account is being hacked! — in hopes that you don’t think before you act.

Any request to move your money for “safeguarding” is a red flag.

The FTC promises it will “never threaten you, say you must transfer your money to ‘protect it,’ or tell you to withdraw cash or buy gold and give it to someone” (5).

If you’re asked to transfer your funds in an unusual way, such as cryptocurrency, wire transfers, payment apps or gift cards, that’s another red flag. And gold bars? That’s most definitely a scam.

The use of couriers can make a scam feel real.

“For a lot of folks, the fact that there’s a physical person involved might increase the legitimacy of a situation,” Zulfikar Ramzan, chief scientist and executive VP of product and development at the digital security company Aura, told AARP (6). But “Even if someone shows up at your doorstep, don’t trust them.” He said that the couriers themselves may not even realize they’re part of the scam.