Authorities Issue Alert on Surge in ‘Recovery Scam’ Cases

Australian authorities recently warned that criminals are targeting people who have been scammed before. They promise to help victims get their money back. The National Anti-Scam Centre says these cases have gone up by 129% in the last six months. Victims have lost more than $2.9 million altogether.

ACCC Warns of Millions Lost in Six Months to Recovery Fraud

The ACCC warns that people have lost millions in the past six months to recovery frauds. Deputy Chair Catriona Lowe criticizes these scams as harmful and cruel. Criminals target previous scam victims who are desperate to recover their money, posing as trusted figures like government officials, lawyers, or charities. Australians aged 65 and older are most at risk, reporting the highest number of incidents and suffering the biggest losses on average. 

Scammers often get victims’ details from selling or sharing data on criminal networks.

A recent report by Belgium’s FSMA revealed a 59% rise in “recovery room” fraud compared to last year, becoming a major cause of complaints to regulators. Lowe emphasized that these criminals exploit people’s desperation after they’ve already fallen victim to a scam.

Victims are contacted through email, phone calls, social media, or texts, and sometimes through online ads. They’re asked for personal info, upfront fees, or even remote access to devices under false promises of helping with money recovery. The National Anti-Scam Centre advises against using such recovery services and urges victims to report incidents to the police and their banks.

Common Problem of Recovery Scams

Recovery scams are a global issue affecting not just Australians but people worldwide. Recently, New Zealand regulators, including the Reserve Bank of New Zealand, have warned about these scams. Scammers pretend to be authorities like the UK’s Financial Conduct Authority (FCA), targeting victims of financial fraud. 

They promise to recover lost funds, exploiting the vulnerable and desperate. Similar tactics were highlighted by the Hong Kong Financial Commission, where scammers posed as trusted institutions to deceive victims. In Poland, hundreds of traders lost over $2 million to fraudsters posing as law firms offering recovery services for forex and crypto market losses.

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