Gold Coin Scam Nearly Cost Michigan Woman $700,000

A Michigan woman almost lost a fortune in a gold coin scam when an alleged scammer convinced the 79-year-old that her Social Security money was supporting “terrorism.” He directed her to buy $700,000 in gold and ship it to a purported depository for security. When the woman, who wishes not to be identified, visited a nearby coin shop to purchase gold, she was met by a concerned dealer who felt something was off. “I got the feeling she was really being pushed to come up with a substantial amount of gold fast,” Ben Soldaat of Grand Rapids Coins told KTLA-5 of Los Angeles. “Somebody was pushing her in a direction she didn’t want to go.”

Wary of the red flags, Soldaat called law enforcement “just to play it safe.” After investigating the matter, Kent County Sheriff’s Office arranged an undercover sheriff’s detective, dressed as an older woman, to deliver a parcel to one of the scammers. The box she gave him, however, was filled with chocolate gold “coins,” and the man was arrested on two major felony charges: false pretenses of $100,000 or more and using a computer to commit a crime.

The woman didn’t lose a fortune in the gold coin scam after all, but many people unfortunately fall victim to similar schemes. “If I can help someone else not become a victim of this kind of behavior, I would be glad to do that,” the woman told KTLA-5. “I happened to be able to get my money back, but a lot of people don’t.”

Sign up for the monthly Reading Room Rundown to receive more great stories!