Digital Gold Scams: How To Protect Your Investments From Fraud

Gold has witnessed an extraordinary surge in value over the past year, drawing intense attention from both seasoned and new investors. On Monday, 20 October, the price of 24-carat gold in India reached Rs 13,069 per gram, while 22-carat gold stood at Rs 11,980 per gram. In major cities, Mumbai saw 24K gold at Rs 13,069 per gram, and Delhi recorded Rs 13,084 per gram. Experts suggest that festive demand combined with global market factors has been driving this rapid appreciation.
Hero Image


Growing Popularity of Digital Gold Investments

As gold prices climb, many investors are turning to digital gold platforms for convenience and liquidity. Transactions via UPI for digital gold increased by 377% since April 2024, reaching nearly 100 million in August 2025, according to National Payments Corporation of India (NPCI) data. Experts highlight that while digital gold offers ease of investment, it also exposes buyers to a higher risk of cybercrime and fraudulent schemes.

Common Digital Gold Scams to Watch

Investors need to exercise caution, as several scams have been reported in recent months:


Theft and Cyber Hacking

Hackers exploit vulnerabilities in digital platforms to steal investors’ gold holdings. For instance, a breach at Aditya Birla Capital Digital Ltd. in June 2025 resulted in losses of Rs 1.95 crore from 436 customer accounts, illustrating the potential dangers.

Fake Online Gold Coin Sales

Fraudsters often promote discounted gold coins online but fail to deliver the products. A family from Ahmedabad lost Rs 12.6 lakh to a website falsely claiming to sell gold coins under the name ‘VJ Jewellers,’ highlighting the prevalence of such scams.


Bogus Investment Platforms

Some fraudulent platforms promise high returns and operate like Ponzi schemes, using funds from new investors to pay earlier participants. These schemes inevitably collapse when inflows stop, leaving investors at a loss.

Misleading Gold Loan Offers

Scammers may offer gold loans with inflated charges or undervalued assessments of your gold’s purity, causing borrowers to lose their assets. Experts recommend careful verification of loan offers and valuation methods.

Red Flags Every Investor Should Know

Investors are advised to be alert for warning signs:

  • Promises of guaranteed high returns with minimal risk


  • Absence of BIS hallmark or other authenticity certificates

  • Platforms not registered with regulatory authorities such as SEBI or RBI

  • High-pressure sales tactics or urgent 'limited-time' offers

  • Vague or unverifiable contact details
  • Practical Steps to Safeguard Investments

    Verify Sellers and Platforms

    Always confirm BIS certification for gold and ensure the platform is registered with relevant authorities.

    Research Before Buying

    Check reviews and ratings from trustworthy sources to assess credibility.


    Avoid Impulse Decisions

    Take your time to understand investment terms and avoid succumbing to urgent sales pitches.

    Ensure Secure Transactions

    Use only secure payment methods and avoid sharing sensitive personal information online.

    Experts emphasise that vigilance, awareness, and careful verification can significantly reduce the risk of falling victim to digital gold scams. By following these guidelines, investors can enjoy the benefits of rising gold prices while protecting their wealth.

    Disclaimer: This article is for informational purposes only. The views expressed here are according to experts and should not be considered as financial advice. Always consult a certified financial advisor before making investment decisions.