Fraud Recovery Scams Surge In UK
In March 2022, official Action Fraud data revealed that fraud recovery scams rose by 33% in the United Kingdom.
Most recently, fraud recovery scams came in the form of Binance impersonation emails. Scammers would use the Binance logo and spoofed email addresses to solicit money from Binance users. Targeting past victims of fraud, scammers posing as Binance employees would then request upfront fees or personal information in exchange for refunding money the victims lost in past scams.
Binance has confirmed that these emails are fake.
What Are Recovery Scams?
Fraud recovery scams are scams that target victims that were already harmed by past frauds. Scammers would usually pose as legitimate organisations, who claim that they can return money lost from the previous scam. Scammers usually request personal information or upfront fees to finalise the refund. They then run off with the victim’s money or data.
Other Common Scams
Impersonation scams also surged in the United States last March. To extort money and personal information, United States scammers would approach victims while posing as the FBI and other well-known law enforcement agencies, then claim that the victim’s identity was used in a major crime. To verify their identities, victims would be asked to confirm personal information, such as social security numbers and dates of birth. Victims that did not cooperate with these requests were threatened with arrest, prosecution, or imprisonment.
How To Avoid Scams
Government or other legitimate organisations will never ask for upfront fees or personal information to help you recover lost money. Avoid impersonation and recovery scams by reviewing the accounts or email addresses of the person contacting you. Grammar and spelling mistakes in emails are also common indicators of an impersonation. Additionally, scammers will usually ask targets to pay using cryptocurrencies, wire transfers, or gift cards. These methods allow scammers to take money without leaving a footprint.
Recovery scams usually target victims already harmed by fraud. Consequently, it’s important to know how to avoid other types of scams.
When it comes to investment scams, it’s a matter of being careful about where you place your money. Scams are particularly abundant in the forex and crypto scenes. Before investing, check whether your broker has been endorsed by the Financial Conduct Authority. For forex traders, the global leader for trading is FXCM. This trading platform offers risk management tools, such as demo accounts, that can protect traders from major losses. For crypto traders, trustworthy platforms include eToro, Gemini, and Fidelity Digital Assets. Investors using FCA-approved financial institutions are protected under the Financial Services Compensation Scheme (FSCS), which can reimburse lost money when institutions fail.
The National Cybersecurity Centre investigates all instances of online fraud in the UK. You can forward any suspicious emails to firstname.lastname@example.org.
To report suspicious texts, you can forward the message to 7726 for free. The message will go directly to your mobile provider.
Those who have already lost money can contact Action Fraud by logging into their website or calling them through their official number: 0300 123 2040.
Fraud recovery scams have caused many innocent victims to lose their money and put their personal information at risk. To protect yourself, learn to spot the warning signs of fraud and distinguish legitimate organisations from impersonators.