They say gold is a safe investment—just not when you’re handing it over to scammers. One Queens woman learned this the hard way, losing her life savings in an elaborate scheme that played out over weeks.
Scammers posing as federal officials tricked Eva Rothman into withdrawing nearly $700,000 from her accounts, convincing her to convert the money into gold bars to “protect” her assets. The criminals used fear tactics, fake identities, and official-looking documents to keep her under their control.
How It Works:
The scam began when Rothman’s computer screen suddenly displayed a message claiming her Social Security number was compromised. A robotic voice instructed her to call a phone number for assistance. When she did, she was connected to someone posing as a Federal Trade Commission (FTC) representative, who told her that her bank accounts were in danger.
The fraudsters persuaded Rothman that the only way to protect her money was to withdraw it and convert it into gold bars. They sent her official-looking emails, used the names of real government employees, and even spoofed phone numbers to make their operation seem legitimate. Over the course of several weeks, Rothman drained all her accounts, purchasing gold from a store recommended by the scammers. Each time she made a purchase, a so-called "courier" would retrieve the gold. After collecting nearly $700,000 worth, the scammers disappeared.
Who’s Targeted:
This scam mainly preys on seniors and those unfamiliar with financial fraud tactics. Scammers use intimidation, urgency, and the fear of legal consequences to manipulate their victims into compliance.
Real-Life Example:
Mohammed Aibani, the owner of the store where Rothman bought the gold, was shocked by the situation. "This lady came repeatedly, and when I asked her why she was buying so much gold, she said she wanted to give it to her daughter," Aibani said. Unfortunately, by the time her family learned about the scam, it was too late.
Why You Should Care:
Losing money to scammers is devastating, but the damage goes beyond finances. Rothman’s savings were meant for her daughter, who has health challenges. After the scam, her family had to make major adjustments, including relying on food banks. The emotional toll and loss of trust are just as painful as the financial loss.
How to Protect Yourself:
- Never trust unsolicited computer warnings – Pop-ups claiming your Social Security number is compromised are always scams.
- Verify official claims – If someone says they’re from the FTC or another agency, contact them directly using their official website, not the number provided.
- Be skeptical of urgency – Scammers create pressure to act fast. A real government agency will never demand immediate action or secrecy.
- Never send cash, gift cards, or gold to unknown parties – Legitimate institutions will never ask you to move your money into a so-called “safe” asset.
- Talk to family and trusted financial advisors – If something seems suspicious, get a second opinion before making any financial moves.
Quick Tips & Updates:
- Quick Tip #1: "Did you know? Government agencies like the FTC or IRS will never call you to demand payment or ask you to move your money."
- Quick Tip #2: "Pro Tip: If you're ever asked to make a financial transaction in secrecy, it's a major red flag. Always verify independently."
Definitions of Key Terms:
- Spoofing: A technique used by scammers to disguise their phone number or email address to make it appear as if it’s coming from a legitimate source.
- Federal Trade Commission (FTC): A U.S. government agency that protects consumers from fraudulent and deceptive business practices.
- Liquidating Assets: The process of converting assets, such as money or property, into cash or other forms of investment.
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