Criminals
are increasingly targeting victims of previous scams with promises of financial
recovery, according to recent warnings from Australian authorities. The
National Anti-Scam Centre reports a 129% increase in such cases over the past
six months, with total losses exceeding $2.9 million.
ACCC Warns of Millions
Lost in Six Months to Recovery Fraud
ACCC Deputy
Chair Catriona Lowe described these “money recovery scams” as
“damaging and cruel,” noting that criminals often prey on people who
have already fallen victim to scams and are desperate to recover their losses.
The scammers pose as trusted entities such as government agencies, lawyers, or
charities, offering to recover stolen funds for an upfront fee.
Australians
aged 65 and older were identified as the most vulnerable group, reporting the
highest number of incidents and suffering the largest average losses. Scammers often obtain information about previous victims by selling or sharing data on criminal networks.
A separate report
by Belgium’s FSMA published this month showed that “recovery
room” frauds increased by 59% compared to last year, making them one of
the most common reasons for complaints and grievances to the regulator.
“Criminals
prey on people who have already been victims of a scam who hope to get their
money back. They are another example of scammers’ willingness to exploit
people’s desperation at a vulnerable moment,” added Lowe.
The scam
typically operates by contacting victims through various channels, including
email, phone calls, social media, or text messages. Criminals may also use
online advertisements to lure potential victims. They request personal
information, upfront fees, or even remote access to devices under the guise of
facilitating the recovery process.
The
National Anti-Scam Centre advises against using services claiming to
recover stolen money and encourages victims to report incidents to the police
and their financial institutions.
Common Problem of Recovery
Scams
As it turns
out, Australians are not the only ones exposed to fraudsters operating recovery
scams. Similar practices occur virtually worldwide, and in recent months,
regulators from New Zealand, among others, have warned about them.
Scammers
were impersonating the UK’s Financial Conduct Authority (FCA) and contacting
New Zealand residents, claiming they could help recover lost funds. The Reserve
Bank of New Zealand (RBNZ) believes scammers specifically target those who have fallen victim to financial fraud, as they may be particularly
vulnerable and desperate to recover their lost savings. This predatory
technique gives scammers credibility by impersonating a real authority.
The Hong
Kong Financial Commission also highlighted this issue in February, when scammers impersonated institutional representatives to mimic legitimate digital wallets and deceive victims into paying for services.
A case that
made headlines at the end of last year involved several hundred Polish traders
who were defrauded by recovery scammers for over 2 million dollars. The Warsaw
regional prosecutor’s office, along with the police central investigative
bureau, announced that they had dismantled a gang of fraudsters posing as law
firms, offering their services to retail investors previously cheated in the
forex (FX) and crypto markets.
This article was written by Damian Chmiel at www.financemagnates.com.
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