How did the scam unfold?
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.
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.
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Learn MoreProtect yourself from dangerous scam
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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