Online gold purchase scams: Online trading in precious metals such as gold and silver has increased dramatically in recent years. Unfortunately, there has also been an increase in online fraud involving precious metals. The perpetrators behind these scams are very professional and use various methods to deceive their victims.

In this blog post, we will explain the modus operandi of gold fake shops and how you can protect yourself from online fraud with precious metals.

Topics

  1. The perpetrators’ modus operandi in online fraud with precious metals
  2. Recognition features of gold fake shops
  3. Legal basis for consumer protection
  4. How can you protect yourself from online fraud with precious metals?
  5. What to do in case of fraud with precious metals?
  6. Conclusion: Fraud when buying gold online

The perpetrators’ approach to online fraud with precious metals

The perpetrators behind online precious metals fraud use various methods to deceive their victims. Here are some of the most common methods:

Creating deceptive looking websites

The fraudsters create deceptive-looking websites to trick their victims into buying fake precious metals. To do this, they often copy the design and functions of real online shops and add fake content. This also includes the integration of logos and certificates to give the impression that it is a reputable provider. It is not uncommon for these websites to have an HTTPS connection, which adds to the users’ sense of security.

Targeted marketing to recruit victims

The fraudsters use targeted online marketing to lure potential victims to their fake websites. For this, they use social media channels such as Facebook or Instagram, but also advertisements on Google or YouTube. Some fraudsters also specifically approach people and talk to them directly to get them interested in their online shop.

Falsification of customer reviews

To give the appearance of trustworthiness, the perpetrators also fake customer reviews. For this, they create fake profiles or buy reviews from third parties pretending to have positive experiences with the online shop. In some cases, they also copy real reviews from other online shops and publish them on their own website.

Redirection to fake payment pages

Once a potential victim has reached the online shop and decides to buy a product, they are redirected to a fake payment page. For this, the perpetrators often use the logos of well-known payment services to give the impression that it is a secure and trustworthy payment. Once the victim has made the payment, the fraudsters often disappear without a trace and do not deliver any goods.

Overall, the perpetrators behind online precious metals scams use a variety of techniques to deceive and defraud their victims. To protect themselves from this type of scam, consumers should be especially careful and stick only to reputable sellers. It is important to know the characteristics of gold fake shops and watch out for suspicious clues. In addition, users should always ensure that they are directed to an encrypted page before entering any personal information or payment details.

Online Gold Buying Fraud – Prepayment Fraud

This method asks consumers to make an advance payment for the purchase of gold or other precious metals. However, once the money has been transferred, the fraudsters disappear and do not deliver any goods.

Imitation of reputable online shops:

Some fraudsters imitate well-known online shops by copying their design and name. Consumers can thus be easily deceived into believing that they are shopping at a reputable online shop.

Phishing scam

In this method, consumers are tricked into revealing personal or financial information through fake emails or websites. The fraudsters then use this information to commit identity theft or steal money from victims.

Use of fake certificates

Some fraudsters use fake certificates to give the impression that their online shop is a reputable one. However, these are often fake certificates that do not guarantee the security of transactions.

Use of fake coins or bars

In this method, the fraudsters offer fake coins or bars that look like real precious metals. The victims are tricked into paying for these fake products and do not receive real precious metals.

Selling fake precious metal certificates

Fraudsters offer fake precious metal certificates to deceive consumers. These certificates contain fake information about the ownership of precious metals that do not exist. Consumers who buy these certificates do not actually receive real precious metals.

Use of fake valuations and references

Fraudsters create fake reviews and references to give the impression that they are a reputable supplier. These reviews and references are often fake and created by the scammers themselves.

Exploiting social engineering – online gold buying scams

Scammers use social engineering to trick consumers into revealing personal or financial information. They pose as legitimate sellers and use this information to carry out identity theft or other fraud.

Use of fake identities

Some scammers use fake identities to give the impression that they are legitimate providers. They create fake websites and pose as businesses to deceive consumers.

Selling stolen or illegally acquired precious metals

Some scammers sell stolen or illegally acquired precious metals. Consumers who buy these precious metals can get in trouble with the authorities for possessing illegally acquired goods.

Use of forged shipping documents

Fraudsters use fake shipping documents to give the impression that they are shipping precious metals to consumers. In reality, however, they are not shipping precious metals or are sending inferior goods.

Online gold buying scams: selling low-grade precious metals

Some scammers sell low-grade precious metals that do not meet the stated standards. These precious metals often have a lower value than stated and are therefore worthless to the buyer.

Use of fake sales ads

Fraudsters use fake sale ads to deceive consumers. These ads are often very enticing and offer precious metals at a low price. When consumers click on these ads, they are directed to fake websites where they have to give away their personal information or money.

Use of fake tracking information

Some scammers use fake tracking information to give the impression that they are shipping precious metals to consumers. In reality, however, they do not ship precious metals or send inferior goods.

Online gold buying scams: using fake guarantees

Fraudsters use fake guarantees to give the impression that they are reputable sellers. These guarantees are often fake and have no validity.

Use of fake testimonials

Some scammers use fake testimonials to give the impression that they are reputable sellers. These testimonials are often fake and created by the scammers themselves.

Identifying features of gold fake shops

Fraud when buying gold online: There are many features that you can use to assess the seriousness of online gold sellers. In the following we give you an overview.

Missing or incomplete imprint information

The imprint information is required by law and is intended to ensure that consumers receive all necessary information about the seller. A reputable online shop will list all the necessary information in the imprint, such as the name of the company, the place of business, the commercial register number and the tax number. If these details are missing or incomplete, this can be a sign of a gold fake shop.

Another problem is that many Gold Fake Shops operate their website from servers outside Europe to avoid European jurisdiction. This makes it difficult to prosecute them legally if they defraud consumers.

It is therefore important that consumers pay particular attention to the information in the imprint when checking an online shop. If there are indications that these details are missing or incomplete, consumers should be cautious and make further enquiries or contact a lawyer.

Lack of transparency in prices and delivery conditions

Lack of transparency in prices and delivery terms is another identifying feature of gold fake shops. A reputable online shop will have clear and transparent pricing and delivery terms on its website. This means that the prices for the products are clearly stated and there are no hidden fees.

A Gold Fake Shop, on the other hand, will often have a lack of transparency in their prices and delivery terms. For example, they might advertise very low prices for precious metals to attract consumers. But when consumers then order, they might be confronted with hidden costs such as shipping costs or customs fees.

Another problem is that a gold fake shop often does not have clear delivery terms. For example, delivery times could be very long or there could be unexpected delays in delivery. In some cases, consumers may not receive a delivery at all, as the gold fake shop had no intention of actually delivering precious metals.

It is important that consumers check the pricing and delivery terms before buying precious metals from an online shop. If they have any doubts about the transparency of these terms, they should be cautious and do further research or contact a lawyer before placing an order.

Fraud when buying gold online: missing or negative customer reviews

Missing, negative or noticeable customer reviews can also be a sign of a gold fake shop. A reputable online shop will usually post customer reviews on its website or on other platforms such as social media or review portals. These reviews are usually written by real customers and can be an indication of how reliable and reputable an online shop is.

A Gold Fake Shop, on the other hand, will often have no or few customer reviews. Fraudsters may try to create fake customer reviews to give the impression that they are reputable sellers. However, these reviews may be fake and may have been created by the scammers themselves.

It is therefore important that consumers look for customer reviews when checking an online shop. If there is evidence that these reviews are missing or fake, consumers should be cautious and investigate further or contact a lawyer.

Unprofessional website appearance = online gold buying scam?

An unprofessional appearance of the website can also be an indication of a gold fake shop. A reputable online shop will usually have a professional and user-friendly website. The website will usually be well designed, with clear and easy-to-understand information and simple navigation.

A gold fake shop, on the other hand, will often have a poorly designed website that does not look professional. The website might have poor grammar or spelling mistakes, which could be an indication that it is a website created by fraudsters.

In addition, the images on the website could be of low quality or not match the products that are actually being sold. This could be an indication that the Gold Fake Shop is not selling actual precious metals, but only trying to scam consumers.

Online Gold Buying Scams: It is important that consumers pay attention to the appearance of the website when checking an online shop. If the website looks unprofessional or has inconsistencies, consumers should be cautious and investigate further or contact a lawyer.

Other distinguishing features that point to a gold fake shop are

  1. No valid SSL certificates: SSL certificates are important to ensure the security of online transactions. A reputable online shop will have a valid SSL certificate to ensure that consumer data is transferred securely. A Gold Fake Shop, on the other hand, will often not have a valid SSL certificate.
  2. Unclear or contradictory information: A Gold Fake Shop will often have unclear or contradictory details on its website. For example, delivery times and costs might be unclear, or the price information on the website might not match the actual cost.
  3. No or unclear return policy: A reputable online shop will have clear return policies to ensure consumers can return their goods if they are not satisfied. A gold fake shop will often have no return policy or it will be unclearly worded.
  4. No customer service: A reputable online shop will offer customer service so that consumers can get help if they have questions or problems. A Gold Fake Shop will often have no customer service or be difficult to contact.
  5. No or poor contact information: A reputable online shop will have clear and complete contact information on their website. A Gold Fake Shop, on the other hand, will often have no or poor contact information.

It is important that consumers are aware of the various identifying features of Gold Fake Shops to protect themselves from fraud. They should always be on the lookout for suspicious clues and stick to reputable sellers to ensure that they are indeed buying genuine precious metals.

Fraud when buying gold online: Legal basis for the protection of consumers

Consumer protection laws, copyright and trademark protection, and liability issues are important legal issues related to online precious metals fraud. Here is some basic information on these topics:

  1. Consumer protection laws: Consumer protection laws are designed to ensure that consumers are protected from fraudulent or misleading practices. In Germany, the Unfair Competition Act (UWG) is the central law protecting consumers and competitors. It prohibits unfair or misleading business practices and gives consumers a right to compensation and injunctive relief. The German Civil Code (BGB) also contains regulations on consumer protection, especially consumer protection in distance contracts.
  2. Copyright and trademark protection: Copyright and trademark protection protect intellectual property, including the design of websites and logos of companies. If a Gold Fake Shop infringes copyright or trademark protection, the company concerned can take legal action to recover the damage.
  3. Liability issues: Various liability issues can arise in the case of fraud and claims for damages. If an online shop is defrauded, it can claim damages from the perpetrators. If a consumer is defrauded, he can also claim damages. In some cases, the website operator can also be held liable if he had knowledge of the fraud or should have recognised it.

It is important that consumers and businesses are aware of the legal basis for consumer protection, copyright and trademark protection, and liability issues in the event of fraud and claims for damages. If they are victims of fraud or have legal questions, they should consult a lawyer to understand their rights and options.

How can you protect yourself from online precious metals fraud?

There are several steps you can take to protect yourself from online precious metals fraud. Here are some tips:

  • Check the website: Check the appearance of the website, the masthead, prices, delivery terms and customer reviews. If the website looks unprofessional or suspicious, or there is evidence of a lack of transparency or fake customer reviews, be wary.
  • Research the online shop: Research the online shop on the internet and look for experiences of other consumers or reviews. If there are indications of fraud or irregularities, you should be cautious.
  • Choose reputable sellers: Buy precious metals only from reputable sellers who already have a good reputation. Look for recommendations from friends or family members, or look for suppliers that are certified by reputable organisations such as the London Bullion Market Association (LBMA).
  • Use secure payment methods: Use secure payment methods such as credit cards or PayPal to secure your payments. Avoid using cash or cheques.
  • Be wary of unexpected offers: Be wary of unexpected offers or promotions. If an offer sounds too good to be true, it could be a scam.
  • Trust your gut: If something doesn’t add up or you have a bad feeling, be cautious and research further or contact a lawyer.

Identify safe online shops and avoid online gold buying scams

There are some characteristics that you can use to recognise safe online shops. Here are some tips:

  1. Professional appearance: a reputable online shop will usually have a professional appearance that is easy to navigate and provides clear information on products, prices and delivery terms.
  2. Transparent pricing and delivery terms: A reputable online shop will have transparent pricing and delivery terms that are clear and understandable and do not contain any hidden charges.
  3. Secure payment methods: A reputable online shop will offer secure payment methods such as credit cards or PayPal to secure your payments.
  4. Customer reviews: A reputable online shop will publish customer reviews on their website or on other platforms such as social media or review portals. These reviews can be an indication of how reliable and reputable an online shop is.
  5. Certifications: A reputable online shop will possibly be certified by renowned organisations such as the London Bullion Market Association (LBMA).
  6. Good reputation: A reputable online shop will already have a good reputation and receive recommendations from other consumers.

Security precautions when paying online

When paying for precious metals online, it is important to take security precautions to protect your personal and financial information. Here are some tips:

  1. Use secure payment methods: use secure payment methods such as credit cards or PayPal to secure your payments. Avoid using cash or cheques.
  2. Check the security of the website: Make sure the online shop’s website has a secure connection. You can check this by looking for the lock symbol in the browser’s address bar or by looking for “https” instead of “http” in the web address. A secure connection protects your data from hackers and fraudsters.
  3. Use strong passwords: Use strong passwords consisting of letters, numbers and symbols to protect your accounts from unauthorised access. Avoid using the same password for multiple accounts.
  4. Avoid public Wi-Fi: Avoid using public Wi-Fi to conduct your financial transactions. Public Wi-Fi is often insecure and can be used by hackers to steal your data.
  5. Check your account transactions: Check your account activity regularly to ensure that no unauthorised transactions have taken place. If you notice suspicious activity, take immediate action and inform your bank.
  6. Be wary of emails: Be wary of emails purporting to be from your bank or online shop asking you to enter your personal or financial details. These emails could be fake and from fraudsters trying to steal your data.

Online gold buying scams: researching and comparing offers

When researching and comparing offers to buy precious metals, there are some important aspects to consider. Here are some tips:

  1. Check different online shops: Research different online shops to get a wide range of offers. Compare prices, delivery terms, customer reviews and the reputation of the suppliers.
  2. Compare prices: Compare prices for the precious metals you want from different suppliers. Also look out for hidden fees, such as shipping costs or taxes.
  3. Check the delivery conditions: Pay attention to the delivery conditions and shipping times. Also check whether the provider ships insured or whether the goods are only delivered at your own risk.
  4. Read customer reviews: Read customer reviews on the online shop’s website or on review portals to get an impression of the reliability and quality of the supplier.
  5. Check the reputation of the supplier: Check the supplier’s reputation by looking for experiences of other consumers or by contacting reputable organisations such as the London Bullion Market Association (LBMA).
  6. Ask for recommendations: Ask friends or family members for recommendations of trustworthy providers.

What to do in case of precious metals fraud?

If you have been a victim of precious metals fraud, you should take the following steps immediately:

  • Stay calm: It is important to stay calm and act quickly to minimise the damage.
  • Document everything: Document all incidents, including the fraud, the contact and the payment receipts. This information can later serve as evidence.
  • Contact the provider: Contact the provider and inform them about the fraud. They may be able to help you solve the problem or recommend further steps.
  • Contact your bank: Inform your bank about the fraud and request a chargeback of the payment, if possible.
  • File a complaint with the police: File a complaint with the police and present all evidence. The police can investigate and assist you in recovering your money.
  • Contact a lawyer: Contact a lawyer who can help you enforce your rights. A lawyer can help you claim damages or represent you in a lawsuit.

How does a lawyer help those affected by online gold buying scams?

A lawyer can help those affected by online gold buying scams in a number of ways. Here are some examples:

I. Advice and support: A lawyer can give advice to victims and support them in enforcing their rights. He can point out the legal options and help to take the right steps to minimise the damage.

II. Gathering evidence: A lawyer can help victims gather evidence that can later be used in court as proof of the fraud. This can help to increase the chances of a successful claim for damages.

III. Representation in court: A lawyer can represent the trafficked persons in court and defend their interests against the provider or other parties involved. He or she can claim damages and ensure that those affected are adequately compensated.

IV. Negotiations with the provider: A lawyer can also conduct negotiations with the provider to reach an out-of-court settlement. In some cases, it may be beneficial to reach an out-of-court settlement in order to save time and costs.

V. Assistance in recovering assets: a lawyer can help victims recover assets such as precious metals or money that have been lost as a result of the fraud.

Conclusion: Online gold purchase scams

Online gold buying scams are a serious threat to consumers who want to buy precious metals online. Fraudsters are using increasingly sophisticated methods to deceive and financially harm unsuspecting buyers. Consumers must therefore be very careful and ensure that they only buy from trusted sellers.

To protect themselves from fraud when buying gold online, consumers should recognise safe online shops, take safety precautions when paying online, research and compare offers, and look out for the identifying features of gold fake shops. In case of fraud, they should act quickly to minimise the damage by collecting evidence, contacting the supplier or the police, and contacting a lawyer.

An experienced lawyer can help those affected by online gold purchase fraud protect their rights and minimise the damage. He can point out the legal options, collect evidence, claim damages and represent the victims in court.

It is important that consumers are aware that online gold buying scams are a real threat and that they need to be careful and take adequate safeguards to protect themselves. However, if they do fall victim to fraud, they should act quickly and contact a lawyer for support and advice.