HSBC warning as two million customers face new gold scam

HSBC UK has alerted nearly two million customers to be vigilant against a new gold scam.

The bank has cautioned its clients about an impersonation fraud that involves purchasing gold and giving it to criminals under the guise of "safekeeping", as reported by City AM.

The financial institution is proactively reaching out to its customers to raise awareness of a "worrying trend" where scammers predominantly target older individuals.

Scammers are deceiving people into participating in bogus police investigations, which result in the victims withdrawing large sums of money, buying gold, and then handing it over to the fraudsters, believing it will be kept safe and eventually returned.

Victims of this con can suffer losses amounting to hundreds of thousands of pounds, according to HSBC UK.

Explaining the mechanics of the scam, HSBC UK revealed that the perpetrators often impersonate the bank, law enforcement, or other reputable entities, convincing the victims that they must safeguard their funds from internal fraud or assist with a fraud probe.

The unsuspecting victim is instructed to purchase gold from a bona fide merchant, only to then give it to the criminal, who poses as a courier, claiming the gold will serve as evidence and be held securely.

Criminals may also manipulate customers into misleading the bank by coaching them on how to respond to queries, suggesting they claim the purchase is for investment purposes or a present.

HSBC UK has stressed the importance of heeding scam warnings issued by banks when executing transactions.

HSBC UK is taking action to alert nearly two million of its customers about a gold scam that's been doing the rounds, prioritising those over 65 and individuals regarded as vulnerable. These groups, according