How to identify and avoid refund and recovery scams

Posted by on Jan 27, 2016 in Frauds, Scams


Scams and frauds are unfortunately very common and versatile, and you have probably experienced at least one attempt of a fraud over your lifetime. There are plenty of ways to execute a fraud, and the most common are by sending the emails, calling people by telephone, leaving them flyers or even walking door to door, offering some non-existent products or services for a certain amount of money.

Businesswoman looking through a magnifying glass to contractOne of the very common frauds is also refund and recovery fraud, also called Fraud recovery fraud. Scammers buy and sell to each other the lists of people who have already lost their money because of various scams, they are the so-called “sucker lists”. If you have ever been scammed by any of the fake promotions, job offers, games of fortune and the like, you are very likely to have your name on the list, and it is possible that you will be contacted by scam artists again. They call the people who have been scammed, offering them the recovery of the money they have lost for a certain sum of money they need to pay in advance.

This is, naturally, against the law, because according to the Telemarketing sales Rule, the payment cannot be accepted until seven business days have passed after your money was recovered.

In this article, we will provide you with some advice on how to identify and avoid this kind of scam:

thief-email-scraping-If you have already been scammed and have lost some money, it can happen that you receive a call offering you the recovery of that money. Also, it is possible that you have lost or have never received some promised goods, prize or merchandise due to a scam, and the phone call you receive can also offer you the recovery of these items. In addition to phone calls, you can also get an e-mail with this offer, but phone calls are much more often. What connects all these offers is that, in order to recover your loss, they all require a certain amount of money to be paid in advance. Do not ever trust these offers and keep in mind that it is illegal to pay money in advance in cases when you need to recover the loss.
-You may get a call or an e-mail where someone claims to be a representative of a Government agency which will help you recover the loss, while in return you need to pay money for charity.

If this happens, make sure to report them to FTC, because consumer protection agencies of all levels (national, state and local) are non-profit organizations, which means that they do not take money for their services.

-If you get a call with a recovery offer, never give any of your personal data, such as first and last name, address and the like, and especially be careful not to give out your credit card or bank account number.

-If you decide to use the services of a fraud recovery company, even if you have not received the call, make sure to check the company’s background and reputation. You can do so by checking with the local government law enforcement, or even by searching for the facts about the company online.

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