This type of scam is especially diabolical because it preys on people who have already been victims of fraud. Scammers contact people who have lost money to previous fraud and promise to help “recover” funds. Those who fall for Recovery Scams become double fraud victims and stand to lose everything all over again. Let’s look at how recovery scams work so we can keep ourselves and others from falling into the trap.
🦹 Targeting: Do scammers share their victim’s information with other scammers? Absolutely they do! Once a victim has contact with a scammer, their name is placed on a “hot list” and shared on dark web forums and within criminal syndicates. They also mine Public Records and people-search sites. Information shared could be anything from sensitive personal information to successful tactics used in the past. Sometimes people become victims of the very same fraudsters they lost money to before. Criminals also pretend to be from law enforcement, government agencies, and/or recovery firms in order to seem more legit.
🦹 Building trust: Once the target has been breached, the scammer begins to set their trap by building trust with the victim. They do this by using details from the initial scam as that makes them more believable. Building trust is essential in a scam whether it is the first time someone is a victim or in a recovery scam. Once trust is established the exchange of funds begins.
🦹 The “Fee”: Upfront payments are requested disguised as processing fees, taxes, or legal costs. Victims are tricked into giving out sensitive information to unlock the recovered money.
🦹 Second Loss: Once these “fees” are paid, the scammers disappear, and the victim can add that total to their original losses.
Some red flags to watch out for are unsolicited contact, upfront fees, guaranteed returns, impersonation, unusual payment methods, and pressure or secrecy. If you are contacted out of the blue by someone who has knowledge and details of your previous scam, it is wise to not engage with the caller and do not give out any further information. You should never pay upfront fees and be very leery of people who guarantee to get your money back. Legitimate recovery groups will not make these promises or ask you to send funds before they do any work for you. Be leery of anyone saying they represent a government agency, bank, or other legal official. If you question someone’s legitimacy, do your own research. Look up their contact information for yourself, don’t trust what they tell you. Also, as with any scam, never pay with gift cards, wire transfers, crypto, or any other unconventional form of payment. Once that money is gone it is next to impossible to recover. Scammers always use pressure tactics to get cooperation from victims. They also use threats and swear their victims to secrecy to scare them into not reaching out to law enforcement or trusted family.
Bottom line: being scammed once is devastating enough. It is even worse to be revictimized by a Recovery Scam. Always report scams to the FTC and/or local law enforcement and don’t allow yourself to be pressured into staying silent. Falling for a scam should make you more aware of the dangers of giving out personal information. Always stop and think before you act. Remember, if you can spot a scam you can stop a scam.
Tara Montgomery
Exchange Bank of Alabama
Fraud Specialist
(256) 691-0328
