Scammers and Fake Recovery Offers

The National Anti-Scam Centre warns Australians who have had their money stolen by scammers to be wary of offers to recover it for an upfront charge.

The ACCC cautioned that scammers are targeting victims of scams with schemes that demand an upfront charge to recover funds lost in previous scams.

The ACCC advisory said “Reports that involve a money recovery element are on the rise. Between December 2023 and May 2024, Scamwatch received 158 reports with total losses of over $2.9 million, including losses from the original scam. The number of reports increased by 129 percent compared to the six months prior, however, financial losses decreased by 29 percent from $4.1 million.”

Victims of prior frauds are easily identifiable by thieves, who frequently retain and sell information about those they have abused. Australians 65 and over were the largest reporting category, with the highest average losses.

The Double-Scam Strategy

• Initial Scam: Victims fall prey to an initial scam—whether it’s a romance scam, investment fraud, or phishing attack. They lose money, personal information, or both.
• Enter the “Recovery” Scammers: Seemingly out of the blue, victims receive unsolicited calls or emails from individuals claiming to be fund recovery experts. These scammers promise to help victims retrieve their lost funds—for a fee..
• The Catch: Victims are asked to pay an upfront fee or a percentage of the recovered amount. Desperate to recoup their losses, some victims comply.

Authorities are concerned about re-victimization, which can aggravate the financial and emotional suffering caused by scams.

Red Flags

1. Unsolicited Contact: Legitimate recovery services don’t cold-call or email victims. Be wary if someone reaches out to you unexpectedly.

2. Upfront Fees: Legitimate recovery services typically work on a no-win, no-fee basis. If someone demands payment upfront, it’s a red flag.

3. Pressure Tactics: Scammers use urgency and fear to manipulate victims. They might claim that time is running out or that they need immediate payment.

4. Requests for Personal Information: Scammers often ask for personal details under the guise of verifying your identity. Be cautious about sharing sensitive information.