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Saturday, May 17, 2025

RECOVERY SCAMS- Fraudsters Come Back for More

Like retailers, scammers like repeat customers. Retailers try to earn repeat business by selling quality products at good prices and providing good service. Scammers get repeat customers by manipulating victims over and over again.

Some scammers will keep a list of victims who have surrendered money to return with another scam to try to get more money. Other scammers purchase victim lists (known as sucker lists in the “trade”) for a list of people who would be more likely to be manipulated in a scam.

One scam that fraudsters use is a Recovery (or Refund) Scam. If someone has been victimized in a scam, the scammer may come back pretending to be a trustworthy government agency, a recovery company, advocacy group, or law firm to offer their services. This could be to process a refund or to work through the bureaucracy to pursue your claim.

They will make lavish promises that they can recover your lost funds. They will claim that they have a very high success rate for their “clients.”

But they need to be paid a “retainer fee,” “processing fee,” “administrative charge,” “tax,” “shipment and handling charge.” They may also want some personal information to help process your claim such as social security number, checking, debit, or other financial account number.

There are legitimate recovery companies, but often only do the filing that you can do for free.

Being scammed is a devasting experience. And it is natural to want to recover any lost funds. But be careful.

·         Ignore unsolicited offers. If you have an interest in a specific organization, such as a law firm, do a web search with the name of the firm and keywords such as “scam,” “fraud” or “complaint.” You can also look up companies and charities on the Washington State Secretary of State website- https://www.sos.wa.gov/. You can also look up a business to see if they are a member of the Better Business Bureau- https://www.bbb.org/.

·         Reject pressure tactics. Scammers use pressure to get you emotional so that you act emotionally not logically.

·         Be leery of anyone who guarantees that they can return all of your money.

·         Walk away from up-front fees. Scammers will charge up-front fees to start getting money out of you. And they may string you along with one more fee. Then one more fee.

If you are scammed, you will feel foolish. Remember, you have been victimized by a criminal. It is the criminal who is at fault for stealing your money and possibly your personal information.

 

 

 

 

Federal Trade Commission:

https://consumer.ftc.gov/articles/refund-and-recovery-scams

 

 

AARP:

https://www.aarp.org/money/scams-fraud/recovery-scams/

It can be possible to recover scammed funds. Here are a few tips:

https://www.aarp.org/money/scams-fraud/recovering-stolen-money/?msockid=1ccaa3490741631714d9b3fb03416160

 

 

FBI Internet Crime Complaint Center (IC3):

https://www.ic3.gov/PSA/2024/PSA240624

https://www.fbi.gov/contact-us/field-offices/sandiego/news/fbi-san-diego-seizes-cryptocurrency-recovery-websites

https://www.fbi.gov/news/stories/operation-level-up-how-the-fbi-is-saving-victims-from-cryptocurrency-investment-fraud

 

 

Financial Regulatory Authority (FINRA):

https://www.finra.org/investors/insights/recovery-scams

 

 

 

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