Scam Spotlight: Recovery Scams

A “recovery scam” happens when scammers impersonate trusted resources like a government agency, law firm, or consumer support organization, and claim they can help a scam victim recover from the loss. The scammer claims they can help the consumer recover their stolen money or identity – for a price. But really, they are being targeted by scammers all over again.

One consumer recently reported to DATCP that after they lost over $5,000 to a cryptocurrency scam, they were contacted by what they thought was a reputable company claiming they could help get the consumer’s money back. The consumer transferred another $500 to this “company” through what they believed was a legitimate platform, but soon realized the website was a convincing copy of the real platform and was actually controlled by the scammer. The scammer refused to refund the money and the consumer lost even more money.

The FBI recently said that these recovery scams have been especially focused on victims of cryptocurrency scams. After a scam, a surprise offer to help can feel like the consumer’s luck has turned around. But it’s especially important for consumers to practice caution when they are at their most vulnerable.

Consumers who are offered help or recovery services after being scammed should:

· Remember that scammers make money through urgency and emotional manipulation. They rely on convincing consumers to act before they pause to think carefully about the situation.

· Ignore unsolicited offers. If a consumer wants help with recovery, they should seek it out directly from real agencies and organizations.

Be skeptical of requests for up-front fees. After payment is delivered, there is no guarantee that the other party will follow through on their promises.

· If the fraudulent payment is sent to the scammer through a cryptocurrency kiosk (AKA a crypto ATM), consumers are eligible to be refunded the amount lost if they submit a complaint to both the kiosk operator and law enforcement (preferably the WI Department of Financial Institutions or WI Department of Justice).