Fraud prevention – protecting yourself from recovery scams
Posted by Matthew Andrews on February 25th, 2025.
Your safety and the security of your money is our highest priority, and we implement stringent safeguarding measures to protect all our customers. However, it’s also important for you to take steps to shield yourself from fraud.
To assist you in identifying potential scams and staying secure, we are publishing a series of articles focused on fraud protection. This article specifically addresses recovery scams.
What is a recovery scam
A recovery scam is a type of fraud in which scammers pose as professionals—such as financial advisors, legal experts, or investigators—who claim they can help victims retrieve lost funds from previous scams. These fraudsters often request advance payments or personal information under the guise of assisting in fund recovery.
Recovery scams fall under the broader category of advanced fee fraud, where criminals promise financial gains in exchange for an upfront payment.
Scammers use sophisticated methods to appear legitimate, including official-looking emails, fake legal documents, imitation websites, or stolen identities of real professionals.
These scams prey on individuals who are already financially and emotionally vulnerable after being defrauded. Instead of recovering their lost funds, victims end up losing even more money, often leading to further financial and emotional distress.
An example of a recovery scam
Sarah, a freelance graphic designer, was searching for ways to grow her savings. One day, she received an email from a financial advisory firm promoting a high-yield cryptocurrency investment opportunity. The email promised impressive returns, expert advice, and low risk. Intrigued, Sarah responded.
She was connected to a man named Alex, who claimed to be a senior advisor at the firm. Alex provided detailed information about the investment, making it seem legitimate and secure. With Alex’s reassurance, Sarah created an account on their platform and transferred an initial investment via an online payment system.
Weeks passed, and Sarah saw no returns. When she tried contacting Alex, her messages went unanswered. She then reached out to the company’s official contact points, only to discover they had no record of her account or any trading activity. Sarah realised she had fallen victim to a sophisticated crypto scam.
Months later, still struggling with her loss, Sarah received an email from a legal firm claiming to specialise in recovering funds lost to scams. The firm boasted a high success rate and offered to help Sarah reclaim her money. Hopeful, she responded.
A chat window opened with a woman named Emily, who claimed to be a legal consultant. Emily provided detailed information about their recovery process and past successes, reassuring Sarah. She was instructed to complete a recovery claim form and pay a small legal fee to expedite the process.
After paying the fee, Sarah waited, but days passed with no further communication. When she tried contacting Emily, her messages went unanswered. She then contacted the firm’s official channels, only to find they had no record of her case.
Sarah had been scammed a second time—this time by fraudsters preying on her desperation to recover her money.
Five tips on how to protect yourself
- Verify contacts and offers
Always confirm the legitimacy of a message, call, or email before engaging, especially if the message comes from an unknown source or seems unusual.
Scammers often impersonate trusted individuals or organisations to gain your confidence. If an offer seems too good to be true, it likely is. Verify the information by contacting the person or organisation directly using verified contact details from their official website.
- Be wary of unsolicited messages
Scammers often send unsolicited messages offering to recover lost funds. If you receive a message claiming to help you retrieve lost money without you having requested assistance, it is likely a scam.
Scammers will often use pressure tactics to rush you into making hasty decisions. If a message seems urgent or threatening, take a moment to assess the situation carefully. Avoid responding impulsively and verify the message’s authenticity.
- Avoid clicking on suspicious links
Be cautious of links in emails or text messages that claim to offer recovery assistance. These links may lead to phishing sites designed to steal personal data or install malware on your device.
Hover over any links to check their actual destination before clicking. If unsure, avoid clicking altogether and visit the official website of the organisation directly.
- Steer clear of firms requesting upfront payments
Legitimate recovery services typically do not demand large upfront fees. If a service asks for significant payment before any work has been done, consider it a red flag.
Reputable services will generally operate on a success-based model, where fees are deducted from the recovered amount rather than requiring significant prepayment.
- Stay informed on common scams
Keeping up to date with the latest scam tactics is one of the best ways to protect yourself. Fraudsters are constantly adapting their techniques, so staying informed can help you recognise and avoid new threats.
Share knowledge with friends and family to ensure they are also aware of the risks. The more people know about scams, the harder it becomes for fraudsters to succeed.
If someone targets you
If you suspect you’re being targeted or have fallen victim to a recovery scam, take action immediately to prevent further losses.
Contact your bank, credit card provider, or other financial institutions to report the incident and secure your accounts. Monitoring your financial activity closely will help detect any further suspicious transactions.
You should also report the incident to Action Fraud, the UK’s national centre for reporting fraud and cybercrime, or the equivalent authority in your country.
If you need further assistance, organisations such as Victim Support offer free specialist help for scam victims.
More information on recovery scams
Several organisations and websites offer valuable resources and guidance. If you suspect you’ve clicked on a malicious link, use a domain checker like who.is to verify the site’s legitimacy. You can also report suspicious websites 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.
Lastly, if you’re sending money overseas with TorFX and have any security concerns, no matter how small, reach out to us. We’re always here to help and provide reassurance for safe, secure transfers.
Finally, if you’re worried that your TorFX account may be at risk, contact us as soon as possible and we’ll be happy to help. You can also download our app, or use our online platform, to keep an eye on your transfers.
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