Precious Metal Investment Scams via Bank Transfer
Fraudulent bullion dealers or storage programs collect bank transfers for gold, silver, or platinum investments that do not exist or cannot be delivered or redeemed.
Part of: Precious Metal Investment Scams
Last reviewed: 8 June 2026
Gold and other precious metals are widely perceived as safe-haven assets, and this reputation makes them attractive cover for investment fraud. Fraudulent dealers or metal-storage programs collect bank transfers from investors, issuing certificates or account statements for precious metals they never purchased or do not hold.
Bank transfers are the preferred payment method for these schemes because they are associated with legitimate wholesale transactions, appear professional, and give the operator funds quickly without the friction of card processing. Victims may hold account statements for years before discovering that the underlying metal does not exist.
How this scam works on bank transfer
Victims are contacted through direct mail, online advertising, or referrals and offered an opportunity to purchase and store physical precious metals with a specialized dealer. The dealer's website, brochures, and correspondence look professional. Bank transfer instructions are provided, and a certificate of ownership or an online dashboard is issued upon payment.
The scheme sustains itself by paying redemption requests from new investor deposits, appearing legitimate until the inflow of new capital cannot cover existing redemptions. Alternatively, some operators issue fraudulent certificates for metal that never existed and never intend to allow redemption, relying on victims not inspecting their holdings for years.
Common red flags
- Dealer is not registered with a recognized commodity regulatory body or industry association
- Storage is in an unverified or unnamed vault with no independent audit documentation
- Certificates issued but no mechanism for independent verification of the underlying metal
- Redemption or delivery requires additional fees each time it is requested
- Returns are linked to market price but actual physical metal is never available for delivery
- Dealer pressure to reinvest returns rather than take delivery
- Bank account receiving payment is not in the same name as the registered business entity
How to protect yourself
- Buy precious metals only from dealers registered with a recognized regulatory or industry body
- Demand independent vault audit documentation before any bank transfer is made
- Prefer physical delivery of metal at purchase rather than third-party storage
- Verify the storage vault exists and operates independently from the dealer
- Use a payment method with fraud protection rather than a direct bank transfer where possible
- Consult a licensed commodity broker before investing in any precious metal storage program
How to report it
- Report to the CFTC at cftc.gov/complaint if commodity fraud is involved
- File a complaint with the FTC at reportfraud.ftc.gov
- Report to the relevant financial regulator in your country
- Contact your bank fraud team immediately to attempt recall of recent transfers
Frequently asked questions
Is allocated versus unallocated storage important?
With allocated storage, specific bars are owned by and set aside for you. Unallocated storage means you have a claim against the dealer's pool of metal, which introduces counterparty risk. Fraudulent operators often offer unallocated storage with no actual metal behind it.
How can I verify that a precious metals dealer is legitimate?
Check the dealer's registration with commodity regulators such as the CFTC in the US or the FCA in the UK. Also check membership in recognized industry associations and look for independent vault audit reports.
Can I take physical delivery of my precious metals?
Legitimate dealers will allow physical delivery upon request, subject to reasonable logistics. If a dealer consistently deflects delivery requests with fees or delays, treat this as a serious warning sign.