A Portland senior nearly lost $170K in a gold bar scam — how to protect yourself from precious metal schemes and make safer investment choices

How to protect yourself from precious metal scams

According to Kakoullis, who spoke to the customer later, the man fell for a common — and very effective — gold bar scam.

"Initially they called him, said his Social Security number was compromised. Some people were opening up different accounts with his Social Security number, trying to launder drug money, stuff like that," Kakoullis told reporters. "He was skeptical, so they had him talk to a sheriff from Washington, D.C., and they convinced him.”

While this customer narrowly avoided losing his life savings, other people haven't been so fortunate. A Clark County resident recently lost $500,000 in a scam with nearly identical details — a stolen Social Security number and fake law enforcement officers.

"It's evil. I mean, you're taking people's life savings. Especially ... when you're in your 70s, you don't have time to recover from that," Kakoullis told KGW8.

Gold bar scams are increasingly common, especially with elderly or vulnerable people who are pressured to make rash decisions.

Here are a few ways to protect yourself or your loved ones:

• Take a breath before making significant financial decisions. Scammers rely on fear and pressure to make you act before you have time to think it through.
• Never click on popups or websites you don't recognize. Many of these scammers use popups to tell victims they have a computer virus or were implicated in a crime, then offer to help.
• Be skeptical of someone claiming to want to help you hide or protect assets. Law enforcement won’t do that.
• Don't agree to buy gold or precious metals using “equity-based financing or leverage,” where you invest just a small part of the value that increases as prices rise, says the Commodity Futures Trading Commission. Keep in mind costs could fall, leaving you with nothing.

Investing in precious metals can be a smart way to diversify your portfolio, but being aware of scams can help protect your financial future.

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How to safely invest in precious metals

Scammers often target people who are unfamiliar with investing in precious metals, so it's essential to make sure you're working with legitimate sellers. Here are a few rules of thumb to safely invest in gold and other precious metals.

Buy from reputable sellers

Stick to well-known, accredited dealers like those listed by the Professional Numismatists Guild (PNG) or the U.S. Mint. Avoid sellers pushing urgency or promising guaranteed returns.

Verify prices and fees before you buy

Some sellers inflate gold costs or try to charge huge fees. Before you buy, refer to the World Gold Council or another reliable source for gold prices. Be wary of excessive markups or hidden fees.

Store your gold securely

Never give gold to anyone, even if they claim to work for a law enforcement agency. Gold is like cash — it's often untraceable and nearly impossible to recover. Instead, consider using a bank safety deposit box, private vault service or a home safe. Never keep large amounts in unsecured locations.

Avoid high-pressure sales or financing traps

Scammers often push leverage or financing deals with guaranteed results. It's a trap — and sometimes illegal. Legitimate gold investments don't require urgency, high-pressure sales tactics or hard-to-understand financing agreements.

Gold and precious metals are a legitimate way to invest, but they're often used to scam people. If you want to invest in precious metals without the risk of being scammed, consider gold ETFs. These purchase shares in a fund that tracks the price of gold.

If you believe you or someone you know has been a victim of a precious metal scam, contact the Federal Trade Comission to report it.