SCARS Institute's Encyclopedia of Scams™ RomanceScamsNOW.com Published Continuously for 25 Years

SCARS Institute’s Encyclopedia of Scams™ Published Continuously for 25 Years

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Don’t be Re-Victimized by Recovery Scams/Fraud

Avoid Money Recovery Scams

How Scams Work – A SCARS Insight

Avoid Recovery Scams – Don’t Become A Victim

Money recovery scams target desperate victims when they are most in need right after their scam!

“We can get your money back.”

Recovery Scams: If you recently lost a portion of your savings or retirement nest egg to a cryptocurrency, forex, or binary options scam, or other relationship scams, an offer to recover your lost funds may sound very appealing. Unfortunately, for many victims of fraud, the offer may be another scheme that adds insult to injury – it is a recovery scam.

Recovery scams are a form of advance-fee fraud—when you are asked to pay upfront for the chance of getting a much bigger sum of money later. Recovery frauds target victims already harmed by other frauds.

If you’ve been a recent victim of fraud, be prepared to guard against these follow-on recovery scams schemes.

Faked News & Recovery Scams

Recently, a number of scammers successfully gained access to local news websites by using free or low-cost online press release distribution services for the purpose of promoting recovery scams.

Here’s how it works:

  • The fraudsters create websites posing as fraud recovery investigators. The website is used to solicit fraud complaints but also includes reassuring customer testimonials, A-plus ratings, and five-star reviews. NEVER REPORT SCAMS ON ANYTHING BUT A GOVERNMENT OR GOVERNMENT-PARTNERED WEBSITE (such as Anyscam.com which is partnered with the Federal Trade Commission)
  • The scammers write a press release about avoiding and recovering from fraud, a breakthrough technology, or an outstanding success record in returning money to victims.
  • Links to the scam’s website are cleverly planted in the press release. Often the fraudsters are quoted as expert sources.
  • The press release is then uploaded to a network of subscribing news outlets.

Many small-town newspapers or community news websites subscribe to these services and automatically post press releases to complement their locally written news. Likewise, some larger news aggregation websites may subscribe to these automated services to provide broader coverage of business or industry news.

Recycling Victims Into Recovery Scam Victims

The fraudsters use creative writing techniques to disarm readers, build hope, and create a façade of legitimacy for recovery scams. The recovery services are referred to as “fraud recovery experts,” or the “one successful way” to get stolen money returned. But these recovery scams are just another way that scammers can gain more money.

When the fraud victims visit the fraudster’s website and submit their email addresses and phone numbers for assistance, the scam begins or the victim’s personal information is stolen, which could lead to being targeted again in the future. Research indicates that the majority of fraud victims are victimized more than once, and data shows prior victims are often targeted more than nonvictims.

Some published press releases are indistinguishable from other articles on the news website. They’ll also sometimes go so far as including references to CFTC advisories, fraud avoidance tips, and links to submit fraud complaints to the CFTC. Sometimes refer to the FTC or the FBI.

Another common tactic of recovery scams is to use existing victim lists that are bought and sold by various criminal gangs. After fraudsters steal victims’ money, they also profit from the victims’ information—either by hanging onto it for a few months and coming back to run another scam or by selling it on the dark web. The criminals can earn as much as $100 per name or more.

Victim lists can include payment and contact information, personal details, the amount of money taken, and the type of scam that was used.

Commonly, a victim receives a phone call or email from a person claiming to be a government official, an attorney, or a recovery service representative. In most cases, the fraudsters claim to have the money already in hand or are working with the court to distribute the funds. In other cases, the victims are told that the fraudsters who took their money have been tracked down and the caller is notifying victims to begin a civil court action.

Sometimes, victims are told that most or all their money will be returned if they first pay a small donation, retainer, fee, or overdue taxes. However, after making the first payment, requests for more funds often follow, and the victim never receives their money.

Recovery Fraud Warning Signs

Watch for these warning signs of recovery scams. Any of them should be considered a red flag that raises your suspicion. Report any follow-on fraud attempts to authorities.

  • You’re asked for an email address or phone number before seeing fee disclosures or a detailed list of services.
  • You’re asked to pay before receiving any service. Be alert to deposits or other seemingly small fees. Sometimes fraudsters ask for small amounts of money at first, but the frequency of requests and amounts increase over time.
  • The physical address for the recovery business is not on the website, the address is outside the United States, the address is not found in map or “street-view” searches, or does not appear to be an authentic place of business.
  • No phone numbers are provided, or you’re asked to communicate through Telegram, WhatsApp, or other messaging platforms.
  • You’re asked to give bank account details so the “recovered” funds can be deposited directly into your account.
  • Calls, letters, or emails are coming from people you don’t know or companies you’ve never contacted.
  • The person or organization knows a lot about the money you lost.
  • The person or organization is using a web-based email address, such as @Gmail or @Yahoo.
  • Organization seals, logos, graphics, or signatures look like they’ve been cut-and-pasted from other documents.
  • The letterhead looks unprofessional.
  • There are grammar and spelling errors.
  • You are given reasons why the fees can’t be taken from the money after it’s recovered, or they call the payment a donation or tax.

Also Remember:

  • Never give personal, payment, or account information over the phone or by email. Even providing an email and phone number could open the floodgates to more fraudulent solicitations.
  • Government agencies like the CFTC that prosecute financial fraud will never ask you for money and would only use “.gov” email addresses.
  • If an email directs you to a customer service or government website, don’t click the link in an email.  Conduct your own web search for the person or organization and contact them independently.

Victims who are eligible for legitimate restitution will likely be notified by mail from the court where the restitution was ordered or a government agency responding for the court. If you receive such a letter, verify the information by independently going to the agency’s or court’s website, or calling them yourself. Do not use phone numbers or web addresses provided in the correspondence until you verify its authenticity. If the communication is part of a fraud, the phone numbers and web addresses will be fraudulent, too. It’s good to take precautions but don’t ignore the letter. It could also be real.

How to Identify a Real Government Employee from an Imposter

Imposter frauds are becoming increasingly common.  Fraudsters know most people tend to trust law enforcement or government officials, and they use that trust to their advantage. If someone contacts you claiming to be from a court or government agency, there are simple ways you can check:

  • If someone calls you claiming to be from the government, write down pertinent information, but do not confirm personal information about yourself, including your social security number.
  • End the call. Then, call the agency using the contact information on its official website.
  • If you receive an email, look at the email domain or any web links that are provided. All government websites and email addresses end in “.gov” or “.fed.us.” Only government agencies can get and use these domain extensions.
  • Government officials will never use a personal or web-based email account to contact you.
  • If the government needs to reach you, they will send official documentation in the mail.
  • A government agency will never demand immediate payment or ask for donations.
  • Government agencies will not require you to wire money, send prepaid credit or gift cards, use digital assets such as Bitcoin, or make other unusual forms of payment.

Help Fight Fraud – Report Suspicious Activity

Another common tactic of recovery fraud is to use existing victim lists. After fraudsters steal victims’ money, they also profit from the victims’ information—either by hanging onto it for a few months and coming back to run another scam or by selling it on the dark web.

Victim lists can include payment and contact information, personal details, the amount of money taken, and the type of scam that was used.

Commonly, a victim receives a phone call or email from a person claiming to be a government official, an attorney, or a recovery service representative. In most cases, the fraudsters claim to have the money already in hand or are working with the court to distribute the funds. In other cases, the victims are told that the fraudsters who took their money have been tracked down and the caller is notifying victims to begin a civil court action.

Sometimes, victims are told that most or all their money will assuredly be returned if they first pay a small donation, retainer, or overdue taxes. However, after making the first payment, requests for more funds often follow.

Go to reporting.Againstscams.org to learn how and where to report.

Portions courtesy of the United States Commodity Futures Trading Commission. https://www.cftc.gov/

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SCARS is the most trusted support & education provider in the world. Our team is certified in trauma-informed care, grief counseling, and so much more!

To apply to join our groups visit support.AgainstScams.org

We also offer separate support groups for family & friends too.

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SCARS offers memberships in our STAR program, which includes many benefits for a very low annual membership fee!

SCARS STAR Membership benefits include:

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To learn more about the SCARS STAR Membership visit membership.AgainstScams.org

To become a SCARS STAR Member right now visit join.AgainstScams.org

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Visit reporting.AgainstScams.org to learn more!

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Published On: June 26th, 2023Last Updated: June 26th, 2023Categories: Insights, 2023, Money Recovery, Money Recovery ScamsTags: , , , , 2 Comments on Recovery Scams/Frauds – Don’t be Re-Victimized1621 words8.1 min readTotal Views: 1125Daily Views: 1

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  1. Recovery Scams/Frauds - Don’t be Re-Victimized 1
    Corey Gale July 25, 2024 at 4:42 pm - Reply

    I have had several encounters with follow up scammers. I have been asked for $15K up front from one to cover the cyber investigation and lawyers retainer, and others requiring BTC or ETH purchases to recover my funds. Red flags for sure.

  2. Recovery Scams/Frauds - Don’t be Re-Victimized 2
    Carmen Rivera July 23, 2024 at 12:15 pm - Reply

    As painful and hard this article was to read, the information in it was so valuable. Thanks, Good advice!

Your comments help the SCARS Institute better understand all scam victim/survivor experiences and improve our services and processes. Thank you


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Important Information for New Scam Victims

If you are looking for local trauma counselors please visit counseling.AgainstScams.org or join SCARS for our counseling/therapy benefit: membership.AgainstScams.org

If you need to speak with someone now, you can dial 988 or find phone numbers for crisis hotlines all around the world here: www.opencounseling.com/suicide-hotlines

A Note About Labeling!

We often use the term ‘scam victim’ in our articles, but this is a convenience to help those searching for information in search engines like Google. It is just a convenience and has no deeper meaning. If you have come through such an experience, YOU are a Survivor! It was not your fault. You are not alone! Axios!

A Question of Trust

At the SCARS Institute, we invite you to do your own research on the topics we speak about and publish, Our team investigates the subject being discussed, especially when it comes to understanding the scam victims-survivors experience. You can do Google searches but in many cases, you will have to wade through scientific papers and studies. However, remember that biases and perspectives matter and influence the outcome. Regardless, we encourage you to explore these topics as thoroughly as you can for your own awareness.

Statement About Victim Blaming

Some of our articles discuss various aspects of victims. This is both about better understanding victims (the science of victimology) and their behaviors and psychology. This helps us to educate victims/survivors about why these crimes happened and to not blame themselves, better develop recovery programs, and to help victims avoid scams in the future. At times this may sound like blaming the victim, but it does not blame scam victims, we are simply explaining the hows and whys of the experience victims have.

These articles, about the Psychology of Scams or Victim Psychology – meaning that all humans have psychological or cognitive characteristics in common that can either be exploited or work against us – help us all to understand the unique challenges victims face before, during, and after scams, fraud, or cybercrimes. These sometimes talk about some of the vulnerabilities the scammers exploit. Victims rarely have control of them or are even aware of them, until something like a scam happens and then they can learn how their mind works and how to overcome these mechanisms.

Articles like these help victims and others understand these processes and how to help prevent them from being exploited again or to help them recover more easily by understanding their post-scam behaviors. Learn more about the Psychology of Scams at www.ScamPsychology.org

Psychology Disclaimer:

All articles about psychology and the human brain on this website are for information & education only

The information provided in this article is intended for educational and self-help purposes only and should not be construed as a substitute for professional therapy or counseling.

While any self-help techniques outlined herein may be beneficial for scam victims seeking to recover from their experience and move towards recovery, it is important to consult with a qualified mental health professional before initiating any course of action. Each individual’s experience and needs are unique, and what works for one person may not be suitable for another.

Additionally, any approach may not be appropriate for individuals with certain pre-existing mental health conditions or trauma histories. It is advisable to seek guidance from a licensed therapist or counselor who can provide personalized support, guidance, and treatment tailored to your specific needs.

If you are experiencing significant distress or emotional difficulties related to a scam or other traumatic event, please consult your doctor or mental health provider for appropriate care and support.

Also read our SCARS Institute Statement about Professional Care for Scam Victims – click here to go to our ScamsNOW.com website.

If you are in crisis, feeling desperate, or in despair please call 988 or your local crisis hotline.