Perth Mint and WA Police join forces to combat surge in sophisticated gold scams

While gold’s surging price is a major boost for local miners, it is also proving highly profitable for criminals.

A steep increase in illegal gold sales has seen the Western Australian police force and Perth Mint warn buyers not to be ripped off by “fool’s gold.”

Scammers are exploiting demand for gold amid historically high prices for the precious metal by selling fake bars and coins, with the state government warning that some fake gold products bear lookalike markings and packaging of The Perth Mint.

Investigating incidents

Police minister Reece Whitby said Perth Mint and WA Police were working closely together to combat the sale of counterfeit gold by investigating reported incidents, supporting enforcement actions and raising consumer awareness.

“Criminals are becoming increasingly sophisticated in how they deceive people,” Mr Whitby said.

“Unfortunately, the sale of counterfeit gold and associated scams are no exception.”

“WA Police continue to investigate and disrupt these operations, but prevention is just as important.”

Counterfeit gold products

WA Mines and Petroleum minister David Michael said that some of the scams involve counterfeit products being sold through online sites such as eBay and Facebook Marketplace and even being traded in exchange for goods and services.

Customers have then approached the Mint to verify their purchases, only to find out they have been conned.

Mr Michael said people looking to purchase precious metals should protect themselves from unscrupulous scammers and only purchase products from trusted sources.

‘Highly sophisticated’ fakes

“These fakes are often highly sophisticated and the result can be devastating for customers when they realise they’ve been scammed,” Mr Michael said.

“If a deal seems too good to be true, it probably is, which is why we’re urging customers to do their due diligence and only purchase gold and silver precious metal products from reputable dealers.”

“The Mint is working closely with WA Police to raise awareness and protect people from being ripped off.”