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The Oregon Department of Justice (ODOJ) is warning Oregonians about a fast-growing and deeply concerning scam after an Eastern Oregon woman was defrauded out of $600,000—nearly her entire life savings. After a call to the ODOJ Consumer Protection Hotline, local law enforcement intervened just in time to prevent the woman from handing over an additional $300,000.
The scammers convinced the woman that they were federal agents and that her financial accounts were at risk of being frozen or hacked. They told her the only way to protect her assets was to convert them into gold bars and turn them over for “safekeeping.” She followed their instructions, purchasing and handing over $600,000 worth of gold.
When the woman mentioned her plans to give the scammers even more money, her sister called the ODOJ Consumer Hotline. Advocates quickly alerted local law enforcement, who visited the woman and were able to stop the final transaction.
“This is a heartbreaking example of how sophisticated and predatory these scams have become,” said Oregon Attorney General Dan Rayfield. “No one—especially not a government agency—will ever ask you to buy gold or hand over your money to a stranger. If something feels off, trust your gut. It could save your life savings.”
How the Scam Works
Federal and local law enforcement have been warning about the rise of “gold bar scams” across the country. Here’s how these schemes typically unfold:
- Initial Contact: Scammers call, email, or text, often claiming to be from a government agency, a bank, or a tech company.
- False Urgency: They create panic by saying your financial accounts are compromised or under investigation.
- Asset Conversion: Victims are told to withdraw large sums of money and convert it into gold or other valuables to “protect” it.
- Courier Pickup: A courier is dispatched to the victim’s home to collect the gold, promising it will be stored safely.
- Theft: Once the gold is handed over, it’s gone—the scammers disappear, leaving victims with nothing.
What You Can Do
ODOJ reminds Oregonians that no legitimate government agency will ever ask you to buy gold or send someone to your home to collect money. To protect yourself and others:
- Hang up immediately if someone pressures you to withdraw or transfer money.
- Call local law enforcement to report immediately.
- Don’t click on suspicious links or respond to unsolicited texts or emails.
- Never give out personal or financial information to someone you don’t know.
- Verify claims by calling your bank or the agency directly using official contact information.
- Report suspicious activity to the ODOJ Consumer Hotline at 1-877-877-9392.
- File a complaint at OregonConsumer.gov
- Report to the Federal Trade Commission at ReportFraud.FTC.gov
Source: Oregon Department of Justice