Beware the Gold Scam: How to Spot Fake Gold Traps

Recently, the continuous fluctuations in gold prices have led to a surge in gold purchases. Exploiting this situation, fraudulent activities involving counterfeit gold sales have shown signs of increasing complexity.

The targets of these scams are individuals seeking bargain prices, aiming to buy gold below market rates, or unsuspecting gold and silver businesses that fail to thoroughly inspect items when fraudsters bring in fake gold for sale or pawn.

According to reports, the Ninh Binh Provincial Police recently dismantled a counterfeit gold trafficking ring, seizing evidence including raw gold bars, 22 gold chains totaling 65 taels (worth nearly 9 billion VND), along with silver raw materials and other related items.

These gold-colored chains appear strikingly authentic, making them difficult to detect with the naked eye. Only the clasp ends are genuine gold, while the entire chain is made of silver, molded, and thinly plated with gold to mimic real gold. Using this method, the group successfully deceived dozens of gold and silver businesses across multiple regions into purchasing counterfeit gold.

A gold shop owner in Ninh Binh, who fell victim to the scam, revealed that the fraudster had visited the store multiple times for gold transactions. On the final occasion, he brought a gold chain weighing 1 tael.

Ms. Tran Thi Thuy, owner of Ngoc Thuy Gold and Silver, stated, “The clasp was indeed from our shop, so I had no doubts and purchased it immediately. A few days later, I saw a post on a local gold trading group warning about a fraudster selling counterfeit gold. Upon examining my gold, I realized it was fake and reported it to the police.”

Following an investigation, the police arrested a group of six fraudsters, including the mastermind, a team leader, and four members.

According to confessions, the mastermind, a former goldsmith, possessed expertise in mixing additives and chemicals to create counterfeit gold products that closely resemble genuine gold. He learned the technique of cutting the clasps from real gold chains, which bear the gold shop’s mark, and attaching them to fake chains through online sources. The group operated for over four months before being apprehended.

Pham Van Tuyen confessed, “I instructed the group to target gold shops with fewer cameras and limited gold testing equipment. Initially, we conducted genuine gold transactions to gain trust. Once the shop owners were confident, we introduced counterfeit gold for sale.”

Preliminary investigations revealed that the group operated a counterfeit gold production facility in Dong Nai, equipped with specialized tools. They successfully executed 30 fraud cases and were planning an additional 22 in northern provinces and cities.

Senior Lieutenant Nguyen Trong Dung, Head of the Ninh Binh Provincial Criminal Police Department, stated, “The group agreed that if any member lost contact for 24 hours, they would discard their SIM cards and disband to avoid detection.”

Previously, a similar incident occurred in Dong Nai, where a fraudster pawned a counterfeit gold chain for 80 million VND. Upon discovery, the fraudster fled but was apprehended by staff and handed over to the police.

Law enforcement advises gold shop owners to enhance security measures and exercise caution during transactions. When customers arrive for gold transactions, request them to remove masks and glasses for identification. Thoroughly inspect and verify the quality of items before completing any transactions to prevent exploitation by fraudsters.