Victims Targeted Twice in Refund and Recovery Scams

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Some scam victims are being targeted a second time by con artists in what's known as a 'refund and recovery' scam. After successfully taking money from victims in an initial scam, the personal information of those victims is then sold to other criminals who contact the victims claiming they can help recover the lost funds - for an upfront fee. In reality, the victims never see that money or the original stolen funds again.

Why it matters

These 'refund and recovery' scams are a growing problem, as scammers leverage the personal information and vulnerability of victims from previous fraud schemes to perpetrate new crimes. This highlights the need for greater consumer education and protection against such predatory practices.

The details

In the 'refund and recovery' scam, a second con artist contacts victims unsolicited, claiming to represent a government agency or private organization that can help recover the money lost in the initial scam. They demand an upfront 'fee' or 'processing charge' to facilitate the refund, but the victims never see that money or the original stolen funds again. The scammers may also use the victims' personal information to steal their identity.

• The 'refund and recovery' scams have been on the rise in recent years, according to the Better Business Bureau.

What they’re saying

What’s next

Consumers who have been victims of an initial scam should be vigilant for potential 'refund and recovery' scams, and should never pay any upfront fees or provide personal information to unsolicited callers claiming they can recover lost funds.