In the world of cybercrime, fraud comes in many forms, each designed to exploit a specific vulnerability in the victim. Recovery fraud is a particularly egregious form of fraud that specifically targets individuals who have already suffered financial loss. This article will explore the operating model of recovery fraud, shed light on how it works, who it targets, and how individuals can protect themselves.

What is recovery scam?

Secondary fraud scams are a type of fraud where scammers contact victims of previous scams and claim they can help them recover lost funds for a fee. These scams are bad because they prey on victims’ desire and hope for compensation, often causing further financial and emotional damage.

How the secondary fraud scam works

The operation mode of secondary fraud can be divided into several stages:

1. Identify the victim

Scammers often obtain victim profiles through data breaches, online forums, or even by purchasing the victim’s information from the original scammer. Additionally, after defrauding the victim, the first scam center will often sell the victim’s information to another scam center that specializes in recovery scams. Individuals may also be targeted through public complaints, comments, or posts on social media seeking help.

2. Make connections

Scammers typically contact victims via email, phone or social media, posing as representatives of government agencies, law firms or specialized recovery companies. They often set up fake attorney websites and design scripts with professional and legal tones to further deceive victims. They use official-sounding names, fake credentials and professional-looking websites to gain credibility.

3. Build trust

To gain the victim's trust, scammers may:

Mention details of the original scam to appear legitimate.

Use technical terms to sound more professional.

Claim to have successfully recovered funds for others.

Providing false assurances or guarantees of success.

4. Request for payment

Once trust is established, the scammer will ask for an upfront payment or multiple fees, claiming they are legal fees, taxes or administrative costs. They may also ask for sensitive information, such as bank details or identification documents, to process the recovery effort.

5. Delay the victim

To extract as much money as possible, scammers may:

Providing false progress updates or documents to show progress.

Claims that unexpected complications arose and additional payments were required.

Threaten to stop the recovery process if the victim hesitates to pay.

6. Disappear

Eventually, the scammer stops contacting, leaving the victim with further financial losses and no way to recover their funds.

Strategies and warning signs

Secondary fraud scams often use these tactics to manipulate victims:

Another tactic is to leverage fake reviews and testimonials on platforms like YouTube. These reviews often contain phrases such as “Thanks to [name] for helping me recover my funds,” designed to create a false sense of legitimacy. Some scammers even impersonate well-known organizations like GASO, creating fake profiles and success stories.

Pressure and urgency: Scammers insist on immediate action, claiming that delays could jeopardize recovery efforts.

Emotional manipulation: They play on the victim’s hopes and fears, making it difficult for the person to think critically.

Impersonating authority: Scammers pretend to be someone from a financial regulator, law enforcement agency, or well-known company.

Promises that seem too good to be true: Often claiming that funds can be guaranteed or fully recovered.

Warning signs include:

Requires advance payment.

Obscure or unverifiable certificates.

Unsolicited contact from recovery agents.

Request sensitive personal or financial information.

How to Guard Against Recovery Scams

1. Verify credibility

Contact your company or individual for enquiries.

Check official registrations, reviews or complaints.

Contact government agencies or financial institutions directly to confirm their legitimacy.

2. Be skeptical of guarantees

No legitimate recovery service can guarantee the recovery of lost funds.

3. Avoid prepayment

Credible recovery services typically operate on a “no win, no fee” model.

4. Protection of Personal Information

Be cautious about sharing sensitive information online or over the phone.

5. Seek professional help

Please consult a trusted legal or financial advisor before using recovery services.

The Importance of Awareness and Support

Secondary fraud scams rely on the victim's lack of awareness and emotional vulnerability. It is vital to educate yourself and others about these scams. If you or someone you know has been targeted, report the scam to the relevant authorities and seek support from support organisations.

By understanding how recovery scams work, individuals can better protect themselves and others from these exploitative schemes. Remember, vigilance and skepticism are the best lines of defense against fraud.