Gold scam swindling Winnipeggers out of thousands of dollars, jewelry appraiser says

All that glitters might not be gold, as police and a local jewelry appraiser says Winnipeggers have been falling victim to gold scams in the city lately.

"I wouldn't say there's any common denominator as far as the type of person that's getting scammed. I'm seeing people from all walks of life," said Gerry Gordon, owner of Gerry's Jewellery Appraisals in Winnipeg.

Gordon says he's had several victims of a gold scam come to his shop in the last couple of months with "basically the same story."

The victims told him that the scams happened in areas close to bank machines, such as outside businesses, he said.

The scammers often had a convincing sob story to share and offered the victims what looked like real gold in exchange for cash they said was desperately needed.

The jewelry the scam victims show him contains no gold at all.

The people who fall for the scam often believe they're doing a good deed but also scoring big by handing over cash to the scammers, Gordon said.

The victims Gordon has met have typically lost $100 to $1,000, but he's seen as high as $2,500 to $3,000, he said.

If a deal seems too good to be true, it usually is, he said.

"Do not buy gold or jewelry in a parking lot," he said. "It's very, very rare [that] somebody's going to offer you $10,000 worth of gold for a couple hundred dollars."

Gordon has spoken with other appraisers in Canada who say the scam is taking place across the country and in the U.S., too.

"Right now, it seems to be a little bit rampant, but this has been going on for years, so this isn't anything new."

Travelling groups

Winnipeg police have received a few reports of a gold scam in the last several weeks, they said in an email Wednesday.

The gold scams resurface from time to time and are often conducted by "travelling groups" based in other provinces, the email said.

In one instance, police allege a man rented a car near Toronto and drove it to Winnipeg, where he swindled a man out of $1,700. 

It's believed that man continued the fraud scheme as he travelled across the Prairies, says a search warrant application filed by Winnipeg police and obtained by CBC News.

A Scarborough man in a rented white GMC Yukon approached another man on June 13, 2023, in the parking lot of the Seafood City supermarket on McPhillips Street, said the application filed later that month by Det. Brian Hunter with the Winnipeg Police Service's financial crimes unit.

The man said he was visiting from Dubai, the court document says.

The man, who had a woman and two children with him, said he was out of cash and "needed help to buy food for his family," Hunter said in the court document.

He offered two diamond rings and two gold chains in exchange for cash.

The man drove the Winnipegger to a nearby bank so he could withdraw money, Hunter said in the application. The Winnipegger gave the man $1,700 cash in exchange for the jewelry, but later learned it was fake.

In the document, Hunter names the man he claims is a scammer. However, police and Manitoba Courts spokesperson Aimee Fortier both said no charges have been laid against the man.

Hunter sought to obtain video surveillance footage from an Enterprise Rent-a-Car in Scarborough, Ont., taken days before the Winnipeg incident, where he said the man rented the GMC Yukon.

In the week after the Winnipeg man said he was scammed, the GMC Yukon's licence plate was searched by police departments in Saskatoon, Sask., and Edmonton, Alta., Hunter said.

'Ever-changing'

Const. Dani McKinnon said the scams are "ever-changing" and Winnipeg police regularly work with other agencies across provincial borders to identify scammers and help ongoing investigations.

Police urge the public to remain vigilant when giving money to others, either online or in person, because helping another person financially is always a choice, but trading untested items like jewelry for cash always carries a risk.

"There are many safe and less risky ways to help those in need."