DRIVERS have been warned of a gas station trick that could suddenly leave their wallets empty.
Experts say that only a smell test could save you from wasting hundreds of dollars.
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Pawn shop owners say that people are losing hundreds of dollars by buying fake gold from solicitors at the gas pump.
The scam happens in parking lots with perpetrators pleading they are out of money and need to sell their gold for cash.
Unsuspecting targets may not know that the fake jewelry is brass or copper, and shell out money for what they think is 18-karat rare metal.
The fraudsters also primarily target seniors who may not be quick to catch on to the schemes.
Jeremy Rolfsmeyer, general manager at Grizzly Gold & Silver, said that he picked up on the spreading problem after people brought fake gold into his business.
“It’s what we call in the industry gas station gold,” he told CBS affiliate KRTV.
“It’s a common scheme nationwide.”
In Rolfsmeyer’s store, buyers can use an acid or magnetic test to determine whether the jewelry is fake.
However, he said that the average driver can determine what’s really inside the jewelry by conducting a smell test.
Real gold doesn’t have a fragrance, so if your fingers get a metallic smell after holding the object, it’s probably made of a much cheaper copper or iron.
Though Rolfsmeyer is based in Montana, about an hour and a half outside Helena, he said that scammers travel across the US targeting drivers.
The fraudsters will hop state lines, so it’s harder to catch them.
Corey Pierce, the general manager of Alias Smith & Jones Pawn, Inc., said that his advice is always to have common sense when approached by solicitors.
He said, “If someone’s offering an ounce of gold for $500? It’s way too good to be true.”
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MORE GOLD SCAMS
The gas station gold ruse is just the latest in a growing wave of gold-related cons sweeping the country.
A widowed husband from Indiana lost $80k in life savings after being called for months by fake FBI communications and asked to buy gold bars.
Prosecutors said the person behind the FBI fake calls is Abdul Afan Mohammed.
He was arrested and charged over the scheme, but later escaped and fled the country. He now remains a fugitive.
Other scammers manipulated a senior citizen by pretending to be law enforcement and convincing her to withdraw $500,000 to buy gold coins for safekeeping.
Safety Tips For Buying Gold
Never trust markings at face value, such as 18k. It could be fake brass or copper.
Sellers in gas stations and parking lots are usually not legit.
Do a smell test for metal odor.
Failed acid tests indicate if a material is non-gold.
A magnet test can reveal movement, which shows the material is base metal.
IF prices seem too good to be true, it probably is because the value of gold is currently $3,000 per ounce.
If the seller disappears quickly or is adamant on cash deals, it is probably a scam.
A similar scheme saw a different man lose $170,000.
Scammers told him his Social Security number had been compromised and pressured him into purchasing gold for safekeeping.
Fraudsters have cost Americans an estimated $126 million in the past year
Law enforcement agencies urge people to be cautious of any deal that seems too good to be true — especially when it happens in parking lots, gas stations, or over unsolicited phone calls.
It is a trend to keep gold for safekeeping, but Pierce warns it is important to buy from reputable sources.
Gold is currently priced at around $3,300 per ounce, so if it is being sold at a much more affordable price, it probably is a scam.
