Authorities caution against surge in fraudulent financial recovery schemes—beware!
- Replies 4
Scammers often target individuals who have previously been victims of scams, exploiting their vulnerability and desire to recover lost funds.
These individuals are perceived as more susceptible to further deception, making them prime targets for fraudulent schemes promising financial recovery or other restitution.
Authorities urged heightened vigilance as criminals increasingly target previous scam victims under the guise of financial recovery promises.
The National Anti-Scam Centre has issued a warning following a surge in reports of scams offering to recover lost funds.
Victims are lured into paying upfront fees, handing over personal details, or making tax payments with the false promise of recovering their losses, only to be scammed again.
Fraudsters also falsely promise to recover lost cryptocurrency, often requesting personal information for ‘identity verification’ or to set up cryptocurrency wallets.
They may further deceive victims by creating sophisticated websites or providing detailed guides and paperwork to lend credibility to their schemes.
According to the Australian Competition and Consumer Commission (ACCC), Deputy Chair Catriona Lowe highlighted a disturbing trend where victims succumbed to multiple scams consecutively.
‘For example, we know of a person who was the target of multiple scams in succession,’ she recounted.
‘What began as a romance baiting investment scam was followed by a money recovery scam, which led to a remote access scam, and finally, identity theft,’
‘In other cases, victims unknowingly proactively contacted criminals after seeing advertisements online.’
Scamwatch, the ACCC's scam reporting platform, recorded 158 reports of money recovery scams between December 2023 and May 2024, totalling losses exceeding $2.9 million.
This marks a 129 per cent increase in reports compared to the preceding six months, although overall financial losses decreased by 29 per cent to $4.1 million.
In terms of average losses and the volume of reports submitted, Elderly Australians aged 65 and above bore the brunt of these scams.
Ms Lowe condemned these money recovery scams as ‘damaging and cruel’, noting that scammers often masquerade as trusted entities like government agencies or legal professionals to exploit victims' vulnerability and hope for financial restitution.
‘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,’ she said.
‘We are also aware of criminals pretending to be a victim themselves and claiming that a specific person or entity helped them get their money back.’
The ACCC is actively addressing the issue, having identified and referred two fraudulent recovery websites for action, one of which has already been shut down.
Ms Lowe emphasised the importance of reporting scams to law enforcement and contacting financial institutions promptly.
‘Scams are crimes, and the criminals who prey on desperate people trying to recover in the aftermath are reprehensible.’ she added.
‘Anyone can be scammed, and that’s one of the reasons drawing attention to Scamwatch’s advice and resources is so important.’
Victims are advised to report the scam to law enforcement and contact their financial institutions. For further guidance on recognising and reporting scams, visit the ACCC's website.
You can also stay informed by monitoring our Scam Watch forum for the latest updates on scams.
Have you encountered any suspicious messages recently? How did you protect yourself from fraudulent activities? Share your experiences and insights in the comments below.
These individuals are perceived as more susceptible to further deception, making them prime targets for fraudulent schemes promising financial recovery or other restitution.
Authorities urged heightened vigilance as criminals increasingly target previous scam victims under the guise of financial recovery promises.
The National Anti-Scam Centre has issued a warning following a surge in reports of scams offering to recover lost funds.
Victims are lured into paying upfront fees, handing over personal details, or making tax payments with the false promise of recovering their losses, only to be scammed again.
Scammers target past scam victims with promises of financial recovery. Credit: Shutterstock
Fraudsters also falsely promise to recover lost cryptocurrency, often requesting personal information for ‘identity verification’ or to set up cryptocurrency wallets.
They may further deceive victims by creating sophisticated websites or providing detailed guides and paperwork to lend credibility to their schemes.
According to the Australian Competition and Consumer Commission (ACCC), Deputy Chair Catriona Lowe highlighted a disturbing trend where victims succumbed to multiple scams consecutively.
‘For example, we know of a person who was the target of multiple scams in succession,’ she recounted.
‘What began as a romance baiting investment scam was followed by a money recovery scam, which led to a remote access scam, and finally, identity theft,’
‘In other cases, victims unknowingly proactively contacted criminals after seeing advertisements online.’
Scamwatch, the ACCC's scam reporting platform, recorded 158 reports of money recovery scams between December 2023 and May 2024, totalling losses exceeding $2.9 million.
This marks a 129 per cent increase in reports compared to the preceding six months, although overall financial losses decreased by 29 per cent to $4.1 million.
In terms of average losses and the volume of reports submitted, Elderly Australians aged 65 and above bore the brunt of these scams.
Ms Lowe condemned these money recovery scams as ‘damaging and cruel’, noting that scammers often masquerade as trusted entities like government agencies or legal professionals to exploit victims' vulnerability and hope for financial restitution.
‘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,’ she said.
‘We are also aware of criminals pretending to be a victim themselves and claiming that a specific person or entity helped them get their money back.’
The ACCC is actively addressing the issue, having identified and referred two fraudulent recovery websites for action, one of which has already been shut down.
Ms Lowe emphasised the importance of reporting scams to law enforcement and contacting financial institutions promptly.
‘Scams are crimes, and the criminals who prey on desperate people trying to recover in the aftermath are reprehensible.’ she added.
‘Anyone can be scammed, and that’s one of the reasons drawing attention to Scamwatch’s advice and resources is so important.’
Victims are advised to report the scam to law enforcement and contact their financial institutions. For further guidance on recognising and reporting scams, visit the ACCC's website.
You can also stay informed by monitoring our Scam Watch forum for the latest updates on scams.
Last edited:
.png){kind=icon}
