What Are the Signs of an Asset Recovery Scam?

It’s especially important in times like this for consumers to be aware of money recovery scams. Some companies prey on vulnerable individuals who are looking for assistance after they’ve lost hundreds of thousands of dollars. Beware of how these scams operate and know the warning signs of a fraudulent company. 

How Recovery Scams Work

Fake asset recovery companies function by compiling a list of individuals that have already been tricked, and they sell their information to other entities, like funds recovery scammers. 

These scam artists take the time to call the former fraud victims and they claim to be experts in assets recovery. They promise to get the person’s money back, and they take advantage of people’s desperation to recoup their losses. 

Sadly, the money recovery scammers get people to pay, never perform the services, and then they stop answering the phones while moving on to the next victim on the list. 

Here’s an overview of other tactics that asset recovery scammers utilize to deceive you into paying them thousands. 

Services are rendered for claims that consumers can file for free through an agency (credit card company)

The scammers submit a complaint to a public agency like the Consumer Financial Protection Bureau (CFPB), and they’ll tell you that you have to cover the costs. The problem is that the CFPB doesn’t charge a fee.

These frauds can also submit claims that they know are too old to have legal ramifications or file complaints without sufficient documentation to support the claim.

Warning Signs of an Asset Recovery Scam

How can consumers spot a fake asset recovery company? 

The CFPB states that if a company requests an upfront fee, this is a red flag that something is amiss with the company. The majority of reputable firms only charge a fee after services have been rendered. Beware of companies that do any of the following:

If they are being very coercive and aggressive while using act-now tactics. Take your time to make an informed decision before purchasing any sort. If the company insists on not giving you this time be alarmed and wary of them. 

Be wary of firms who claim to have exclusive inside information or government connections capable of helping you recover your lost assets. Take note that submitting complaints to federal agencies such as the Federal Trade Commission (FTC). Therefore, any firm claiming to have special contacts or contacts is most likely lying

If you get the sense that the company is discouraging you from seeking advice or supporting information from legal advisors, family members, or friends, they are likely trying to deceive you into paying for a useless service.

If you’ve been contacted by a company that promises to help you with asset recovery, take your time before deciding on what you want to do. If you suspect suspicious activity, report the fraudulent company to your local law enforcement agency.