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It’s an alluring offer: You hear from someone who claims to be able to help you recover money you lost from a previous investment or other fraud. The information sounds credible, and at first glance the organization appears legitimate. The money that’s promised isn’t only welcome but seems well-deserved compensation for previous losses.
The catch? They want you to pay money up front for the recovery “services,” which are almost always fraudulent themselves.
Scammers often find their targets by purchasing or trading lists of people who’ve been impacted by fraud. In some cases, they might even be in on the initial fraud, returning anew in an attempt to steal even more funds.
You might receive urgent correspondence and high-pressure calls or messages from official-sounding organizations. These individuals might falsely claim to be working closely with the US government, regulatory agencies, law firms, or consumer advocacy groups.
Or you might see social media advertising for “asset recovery specialists.” These scammers might establish fake websites, issue false press releases, and boast of success in returning customers’ lost funds.
The bad actors assure you that your money is waiting and can be recovered for a fee. The fees then keep coming, but the promised money never does.
Anyone who charges you up front for asset recovery, guarantees your money can be returned, or discourages you from filing a complaint with law enforcement about the loss is almost certainly a scammer.
If you’re contacted by someone claiming they can help you recover lost funds:
1. Keep your guard up. Be extremely skeptical of any unsolicited offer to recover funds on your behalf, even if they claim to be from a regulatory organization, law firm, or brokerage firm. This common tactic is designed to build credibility — but credibility can be faked.
2. Know the tricks fraudsters use. Fraudsters play on your emotions, so don’t let distress over your previous losses or eagerness to have your money returned cloud your judgment. Carefully evaluate any communications you receive, looking for red flags like misspellings or information that appears to be copied and pasted together, and be wary of requests to communicate through personal email addresses, text message, or encrypted chat platforms.
3. Do some searching. Before taking any action, do an Internet search of the organization or individuals, as well as the type of offer being pitched. Consider adding the term “fraud” or “scam” in your search. You might identify red flags or find that consumer protection, regulatory, or law enforcement organizations have identified this scenario as a potential fraud.
4. Don’t send money or personal information. Fraudsters often push to have funds sent by wire transfer or crypto. When you send money using these methods, you typically can’t get it back. Treat these requests with extreme caution. Fraudsters might also ask for your bank account details to allegedly deposit funds or request other sensitive information they say is needed to complete payment. Don’t provide any personal information until you fully vet who you’re working with.
5. Know where to report fraud. If you suspect fraud related to an investment loss, file a complaint with FINRA, the SEC, or your state securities regulator. You can also report suspected scams to the FBI’s Internet Crime Complaint Center (https://www.ic3.gov/). Filing a complaint is something you can do on your own, for free. Think twice if someone offers to help you file a complaint with any securities regulator for a fee.
6. Learn about legitimate avenues for recovery. All investments carry some degree of risk. But if you believe you’ve been treated unfairly, FINRA, other regulators, and the courts have legitimate mechanisms to help you recover assets or receive compensation.
For further information on protecting your money or to file a tip or complaint, visit www.FINRA.org/MoneyShow.
