Protecting yourself from recovery scams

Keeping you and your money safe is our top priority, and we have stringent safeguarding measures in place to help protect all our customers. But there are also steps you need to take to protect yourself from fraud.

To help you identify potential scams and stay safe, we’re publishing a series of articles on fraud protection. This article looks at recovery scams.

What is a recovery scam?

Recovery scams involve scammers making fraudulent requests for payment or sensitive personal information under the guise of helping recent victims of other frauds recover some of their lost funds. These scams are a type of advanced fee fraud, which also includes scams promising large amounts of money in return for a small upfront payment.

The scammer will often pose as a representative of a business or legal institution. They will then persuade the victim that they can help them recover some or all of the money they have lost. This may include using sophisticated tactics to appear legitimate, including using official-looking documents, fake websites, or stolen identities of actual employees.

These scams can be very alluring to those who have recently experienced a loss due to fraud and are desperate to reclaim their money. However, instead of helping the victim, the scammer exploits their vulnerability and extracts further payments or personal information. This additional loss compounds the initial harm, leaving the victim under greater financial strain.

An example of a recovery scam

Lisa, was an office manager who was looking for ways to improve her financial stability. Lisa received an email from a financial advisory firm promoting a lucrative forex trading opportunity. The message promised substantial returns, expert guidance, and minimal risk. Intrigued, Lisa responded to the email.

A chat window opened with Jacob, who claimed to be a senior advisor at the firm. Jacob provided information about the forex trading opportunity, seemingly legitimising the investment and reassuring Lisa, who was then instructed to create an account on their trading platform and deposit an initial investment.

Trusting Jacob’s persuasive pitch, Lisa created the account and transferred the requested investment via an online payment platform. However, after a few weeks, Lisa had not seen any returns or received additional communication. Growing concerned, she tried contacting Jacob, but her messages went unanswered. Lisa then tried reaching the company’s official contact points, only to discover they had no record of her account or any trading activities. It soon became clear Lisa had fallen victim to a sophisticated forex scam.

Months later, still reeling from her loss, Lisa received another unexpected email from a legal firm claiming to specialise in recovering funds lost in scams. The firm stated they had successfully helped numerous individuals retrieve their money and offered their services to Lisa. Encouraged by the prospect of reclaiming the money she had lost, Lisa responded to the email.

A chat window opened with Susie, who claimed to be a legal consultant at the firm. Susie provided detailed information about their recovery process, past successes, and required documentation, putting Lisa’s mind to rest. Reassured by Susie’s professional demeanour and hopeful for a resolution, Lisa was instructed to fill out a recovery claim form and pay a small legal fee to expedite the process.

However, after several days, Lisa had still not received any additional communication. Growing anxious, she tried contacting Susie, but her messages went unanswered. Lisa then tried reaching the firm’s official contact points, only to discover they had no record of her case or any recovery services. It soon became evident that Lisa had fallen victim to a sophisticated recovery scam.

Five tips on how to protect yourself from recovery scams

1. Verify contacts and offers

Always confirm the sender’s identity, particularly if the message originates from an unknown number or seems unusual for a known contact.

Scammers frequently pose as friends, family members, or reputable organisations to earn your trust. If an offer or message appears unusually beneficial, it probably is. Verify the information by reaching out to the person or organisation directly using their official contact details found on their legitimate website or through known phone numbers, rather than those provided in suspicious messages.

2. Be wary of unsolicited messages

Exercise caution with unsolicited messages, particularly those that ask for personal information, money, or prompt action. Scammers frequently use urgency to pressure you into making quick decisions without proper verification.

If you receive a message that appears urgent or threatening, take a moment to pause and assess the situation carefully. Avoid responding or acting impulsively. Instead, take your time to verify the authenticity of the message.

3. Steer clear of suspicious links

Refrain from clicking on links or downloading attachments from unknown or untrusted sources, as these may direct you to phishing sites aimed at stealing your information or installing malware on your device.

Always hover over links to check the actual URL before clicking. If the link appears dubious or unfamiliar, avoid clicking on it. Instead, type the known and trusted website address directly into your browser to ensure you are accessing a legitimate site.

4. Avoid upfront payments

Avoiding upfront payments is a key strategy to protect yourself from recovery scams. Legitimate recovery services typically do not demand large upfront fees. If a service asks for a significant payment before any work has been done, it should raise a red flag. Instead, credible services often have a payment structure based on a verifiable success rate or a percentage of the recovered amount.

This approach ensures that the service has a vested interest in successfully recovering your funds, aligning their incentives with your goal. Always be wary of services that require substantial payment upfront, as this is a common tactic used by scammers to exploit desperate individuals seeking recovery assistance.

5. Educate yourself about common scams

Stay informed about the latest scam techniques and common tactics used by fraudsters. Awareness is your first line of defence. Regularly check trusted sources, cybersecurity websites, or news outlets for updates on new scams.

Spread this information to your friends and family to help keep them safe too. By learning and sharing this knowledge, you can lower the chances of falling for these scams and contribute to a safer online space for everyone.

If someone targets you 

If you suspect you are being targeted or have fallen victim to a recovery scam, it’s vital to take immediate action to prevent further potential damage from occurring.

Informing other relevant parties, such as financial institutions, credit card companies and any other relevant service providers will also enable you to take additional steps to secure your accounts, as well as helping you to monitor any suspicious activity in the first instance.

If you’ve been a victim, you can also get free specialist help from Victim Support.

More information on recovery scams

Some of the organisations and websites we’ve listed above provide a treasure trove of information, guidance and resources. If you think you may have clicked on a dodgy link that has taken you to an unsafe website, you can use a domain checker site, such as who.is.

You can also report any suspicious sites to the National Cyber Security Centre.

As well as checking the FCA’s Register and Warning List, you can also find other information for consumers and firms on the FCA website.

Action Fraud, the UK’s cybercrime reporting centre, also has plenty of useful resources – as does Victim Support.

Finally, we’re always more than happy to help our customers. If you’ve got any concerns or questions about the security of your Currencies Direct funds, or need guidance in relation to a transfer, please do get in touch.

You might also want to read our article on investment scams, as the two types of scams share some similarities regarding fraudulent communications and impersonation scams.