Suffolk County officials are warning of a new scam targeting residents, particularly older residents with large cash reserves.
Scammers continue to pose as bankers, creditors, or other seemingly legitimate actors to dupe residents into liquidating their assets into gold. Scammers then promise that their money is safe in gold, except the victims don’t see the precious metal in their hands.
In addition to the typical safeguarding of one’s assets, officials implore residents to contact the District Attorney’s office and/or law enforcement when they suspect they’re being scammed.
Suffolk County Legislators Dominick Thorne (R-Patchogue) and Stephanie Bontempi (R-Centerport) have sponsored legislation to require precious metal dealers to better educate the public on these scams and to take precautions when dealing with customers, especially first-time gold-buyers.
“These scammers are professional manipulators to be friendly at first, build the victim’s trust, and this again sometimes happens over the course of several hours or even several days or months,” said D.A. Ray Tierney (R) in Hauppauge on Monday morning. “Once they feel they have a vulnerable victim, they will not give up until they get that money.”
Tierney said that the scammers’ intend to “compress the time” and “raise the pressure” so victims can make a decision without consulting family or experts or without having the time to think clearly. He added that scammers will “scare” victims into “secrecy,” saying that “disclosing any information about their communications or financial transactions could put themselves in danger or they could face legal trouble for illegally disclosing confidential information.”
“It’s very convincing,” said Tierney of these methods. “The gold and the scammers disappear forever along with the victims’ savings.”
Tierney shared two “best defenses” for those who might be targeted: awareness and communication. He urged potential victims to “take a moment, withdraw themselves from the dialogue” and to contact law enforcement or “somebody they trust.” Furthermore, scammers will impersonate a representative from the government, law enforcement, or a financial institution.
“If you are being contacted, that immediately should be a red flag, because that doesn’t happen all that much. More often than not, there’s nothing wrong with your account,” said Tierney. “They will spoof numbers; it will look like they are calling from a legitimate entity. They are sophisticated and they use sophisticated means and technology. If anyone gets an unsolicited call, hang up immediately. Do not engage.”
Another measure of self-defense is to hang up and call the general information number for the office from which the scammers are calling, but that’s not always surefire. Scammers will often have directories on hand to take up a real name affiliated with the department to appear legitimate, or to cover their tracks by sounding legitimate.
Emails are another way scammers can gain access to personal accounts. Never clicking the link on an email or computer pop-up is the best defense, followed by calling the institution from whom the email or pop-up appears to have been sent.
“If someone says, ‘you have a problem, I’m going to help you fix it, but you can’t tell anybody,’ that is a scam 999 times out of 1,000,” said Tierney. “Beware of anyone asking to liquidate your assets, such as savings accounts, checking accounts, stocks, bonds, and IRAs, and to then purchase precious metals or stones, especially gold bars. If anyone is pressuring you to do that, that is not ethical law enforcement, it’s not an ethical financial advisor. No bank will do that.”
All hope is not lost, however, in the event the scammers succeed. The D.A.’s office and the Suffolk County Police Department have been able to recover funds in some instances, depending on when they are contacted. Three detectives, Anthony DeLuca, Thomas Perillo, and Tom Gabriel, were honored after remarks were given for their success in recovering $140,000 in gold.
Detectives also found that the scammers were monitoring the conversation between the detectives and the victim through the pop-up ad on the victim’s computer. The detectives contacted a bank representative and had the gold orders canceled. They assisted the victim in setting up multi-factor authentication on her bank accounts.
“A few extra minutes of caution can protect a lifetime of savings,” said Tierney. He added that some victims remain quiet due to embarrassment of falling for a scam, but that his team and the SCPD insist there’s no shame in reporting the incident to law enforcement.
Suffolk County Ed Romaine (R-Center Moriches) and SCPD Commissioner Kevin Catalina echoed Tierney’s statements. Romaine said that “beefing up” the police budget has aided in their ability to mitigate these incidents.
“The increased use of AI makes their scams seem even more convincing,” said Catalina.
Presiding Officer Anthony Piccirillo (R-Holtsville) said that pending legislation will require precious metal dealers in Suffolk to display signs in their shops to warn customers about the scams. If the law is passed, it would require the signage to be 8.5” by 11” with 22-point font and to be prominently displayed.
