Police warn of gold scam targeting the elderly
2 Ottawa seniors scammed into combined $1M in losses, police say
Ottawa police are warning the public about a new scam targeting the elderly by encouraging them to buy gold to avoid financial losses in a turbulent stock market.
Two victims in Ottawa and one in Norfolk County have lost around $1.5 million combined in gold to scammers, police said Tuesday.
It's a new version of the "grandparent scam," police said in a news release, where scammers would previously tell the victim their loved one was in trouble and ask for bail money.
Elderly people are more vulnerable to scams because they may be isolated, unfamiliar with technology, or experiencing cognitive decline, explained Anthony Quinn, chief operating officer for the Canadian Association of Retired Persons (CARP).
Elderly people are particularly anxious about their financial security, Quinn added, because they don't have time to earn back lost money.
"When you're watching the stock market and it is your life savings going up and down like on the sea, that's nerve racking for older adults," he said.
"For those who are worried about their financial security and gold right now is at a market high, it seems like a bit of a safe place to go with your funds."
How the scam works
In three local cases, the scam started as a pop-up on an Apple device, telling the user they have a virus and providing a number to call, according to Ottawa police Const. Shaun Wahbeh.
After the victim called the number and provided banking information, they received a second call from a scammer pretending to be their bank.
The second caller claimed the victim's money was compromised and told them they have 48 hours to get it out or lose it, Wahbeh explained.
The victims were told not to talk to friends, family, or other bank employees about the situation. Scammers directed victims to buy gold and told them the bank would pick it up and take it to a warehouse for safekeeping.
"Suspects then come to the house and pick up the gold," Wahbeh said. "And the gold is never seen after that."
Once scammers have physical gold in hand, it can be moved between countries easily and has very little tracing, he added.
"They're very good at what they do," he said.
How to protect yourself
Wahbeh warned that anyone could fall for a scam like this, and that people shouldn't click on pop-ups on their computer, answer suspicious text or WhatsApp messages or provide sensitive information over the phone.
"Avoid all that stuff. Close it. Don't open it. Don't engage," he said.
But educating the public about scams has been the suggestion for the last decade or more, Quinn said.
"The criminal justice system and police put their hands up in the air and say: nothing we can do," he said. "As do the financial institutions, leaving seniors to fend for themselves or with no recourse if they're victims."
That's why he said CARP is "delighted" Conservative Leader Pierre Poilievre committed Tuesday to pass an act if elected that would protect seniors by forcing banks and phone companies to crack down on scammers.
Quinn said enforcement has been lacking, and other federal parties have made no such commitment, despite meeting with his organization repeatedly over the last decade.
"It is a lack of justice for seniors," he said.
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With files from Jodie Applewaithe and Joe Tunney