Aussies warned of soaring money recovery scams

COMMUNITY members who have had money stolen by scammers are being urged to be wary of offers to recover that money for an upfront fee.

The warning, issued by the Australian Competition and Consumer Commission’s (ACCC) National Anti-Scam Centre, follows a significant increase in reports of scams involving a money recovery element.

Between December 2023 and May 2024, the number of reported money recovery scams rose by 129 per cent, when compared with the previous six months, however the financial losses accrued decreased by 29 per cent to $2.9 million, down from $4.1 million.

Those aged 65 and older were the cohort most impacted by this type of scam and suffered the highest average losses.

ACCC deputy chair Catriona Lowe said money recovery scams were damaging and cruel, and victims of previous scams were easily identified by criminals who commonly keep and sell information about individuals that have been exploited.

“Scams are crimes, and the criminals who prey on desperate people trying to recover in the aftermath are reprehensible.

“Anyone can be scammed and that’s one of the reasons drawing attention to Scamwatch’s advice and resources is so important.”

She said scammers often preyed on people who have already been victims of a scam, posing as trusted parties such as government agencies, lawyers or charities and promising they can recover the money lost for an upfront fee.

“They are another example of scammers’ willingness to exploit people’s desperation at a vulnerable moment,” Ms Lowe said.

“We are also aware of criminals pretending to be a victim themselves and claiming that a specific person or entity helped them get their money back.”

With even legitimate scam investigation services rarely able to recover money, the National Anti-Scam Centre recommends community members steer clear of all services or individuals who claim they can recover stolen money.

Instead, victims are encouraged to report the scam to the police and contact their financial institution.

Ms Lowe said the ACCC remained concerned about the revictimisation of individuals as it can compound both the financial and emotional harm caused by scams.

She offered an example of an individual who had been the target of successive scams.

“What began as a romance baiting investment scam was followed by a money recovery scam, which led to a remote access scam and finally identity theft.

“In other cases, victims unknowingly proactively contacted criminals after seeing advertisements online.

“As part of our initial response, the National Anti-Scam Centre has referred two websites used in recovery scams for takedown action. One has been successfully taken down already.”

Scamwatch recommends community members follow three steps to help identify the warning signs of a scam and shut things down if they do not add up:

First, stop – if you have been scammed before, see an ad or are contacted by someone with an offer to recover money for an upfront free, it is a scam. Say no, hang up, delete and block any repeated attempts of contact

Secondly, check – scammers may pretend to be from trust organisations. Verify who you’re speaking to by contacting the organisation directing using contact information sourced independently

Thirdly, protect yourself – make all money recovery requests to your financial institution and report scams to the police. Don’t give financial or personal details to anyone online who you’ve never met in person and never give strangers remote access to your computer, and

Finally, report the scam to the Scamwatch to help prevent another person being caught out by the scam.

If you have provided personal information to anyone you don’t know, call IDCARE on 1800 595 160.