It's called the gold scam, and a Barrie senior is out thousands of dollars.
"What started out as a warning on a computer screen with a phone number to call for unsolicited help, has turned into a nightmare that has cost one Barrie resident $725,000," police said in a news release on Monday.
Last week, police say they were contacted by a senior who reported that, in early May, while on his computer, a large icon with a phone number appeared that prevented him from using the computer.
Barrie's News Delivered To Your Inbox
By submitting this form, you are consenting to receive marketing emails from: Central Ontario Broadcasting, 431 Huronia Rd, Barrie, Ontario, CA, https://www.cobroadcasting.com. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact
Police say the senior called the number and the person on the other end stated his name and that he was from a Canadian financial institution.
The suspect told the senior that his computer had been hacked and there was an attempt to take a large sum of money from his bank account.
"The oddity is that the fraudster then asked the senior if he was willing to help catch those who hacked into his computer," according to the police news release.
Police said the elaborate scheme that unfolded involved a detailed script that would explain to anyone the senior approached as to why he was liquidating his investments.
The liquidation would be followed with authentic-looking letterhead from the Bank of Canada, instructions as to how to buy gold plates locally in Barrie using his bank via a wire transfer, all with the promise that he would get his money back at the end of the investigation.
Constant communication by the fraudster to the senior took place after the gold was ordered and eventually picked up the victim, according to police.
An associate of the fraudster met the victim at the end of his driveway, and a shopping bag containing the gold was handed over to the unknown person, who was described as being 18 to 20 years old, police stated.
Shortly afterwards, a letter arrived stating that the gold had been received and that it was in a safety deposit box.
"The reality is, sadly, this gold will never be seen again, and the dollar value it represents can never be recovered," police said in the news release. "Greed then took over and additional request was then made for $850,000."
At this point, the senior became suspicious, and after going to his bank did he realized that he had been scammed and contacted police.
"This scam is not one that the Barrie police have advised of in the past, and (we) look at as being similar to the grandparent scam, but with the gold twist added," police say.
Police say banks do not require you to withdraw your funds to support their investigations.
They advise the public not to click onto pop-ups on your computer, do not respond to strange or odd text messages, lock down your social media accounts, never provide sensitive or personal information over the phone.
"If it sounds too good to be true, it likely is," police said.
They add that if there is an issue with your bank account, the bank will call you and ask you to go to the branch.
"They will not do anything over the phone when it comes to your finances," the police news release stated.
The Barrie Police Service said they hope the experience of this victim will help to educate others, “so that these types of fraud don’t leave a trail of victims as they have in the United States and throughout parts of Canada.
"If you have a parent who is a senior, you are strongly encouraged to talk to them and share the details of this fraudulent scam and others. They have worked too hard in their lifetime to become the 'next' victim," police said.
