A major UK bank has warned of a worrying rise in impersonation scams involving buying gold and handing it over to criminals for ‘safekeeping’.
HSBC has said that there has been an increase in scammers choosing to target older and more vulnerable customers.
The scams start with criminals asking people to help with fake police investigations.
Victims are then convinced to take out cash from their accounts to buy gold, and then hand it over to scammers, with the premise that it is for safekeeping and they will eventually get the money back.
However, those that are scammed can end up losing hundreds of thousands of pounds.
Criminals often impersonate the bank or the police, warning people that they need to protect their accounts or to aid an ongoing fraud investigation case.
After purchasing gold from a legitimate merchant, they must hand it over to the scammer who claims they will keep it safe as evidence.
Criminals may take extra steps to ensure the scam succeeds, teaching buyers to lie to the bank and claim that the purchase is either an investment or a gift.
HSBC said it recorded a significant increase in activity by scammers between July and September.
Data from the banking giant showed that the last half of 2024 saw the highest number of investment scam cases, with double the cases in September compared with the same month in the previous year.
Victims lose £33,739 on average to investment scams.
Police and bank impersonation scams, like the buying gold scheme, have also increased, with an average of £20,772 being lost in each scam.
David Callington, HSBC UK’s head of fraud, said: “During the last quarter we saw a general increase across the board in scam activity, with a number at their highest level in the last 12 months.
“Scammers are using every trick in the book to hoodwink people to steal their hard-earned cash.
“Having a general awareness of the different types of scams will help people protect themselves and their friends and family from falling prey to a scammer, especially those emanating from online sources.”
Have you lost money to a scam? Contact National Fraud Helpline. Call 0333 0033218 or fill out our Claim Form.