Refund and recovery scams: “we can get your money back”
After you've lost money, someone offers to recover it, for an upfront fee.
Could you spot it?
2 quick examples. Decide scam or legit for each.
How it works
Scammers sell lists of people who've already been scammed. A “lawyer”, a “recovery firm” or even a fake government agency contacts you: they've found your money and can get it back for a fee or a “tax”. Some offer refunds for purchases you made, and ask for your card or bank details to send it.
Government agencies and legitimate refund programs never charge a fee to return your money.
Red flags
- Someone contacts you offering to recover money you lost.
- An upfront fee, tax or “processing charge” to get money back.
- They ask for bank or card details to send a refund.
What it looks like
Last year you lost $3,000 in an online investment scam.
Dear Claimant,
Our investigators, working with international authorities, have located $3,000 linked to your name in a frozen offshore account.
To release your funds, an attorney processing fee of $450 must be paid in advance. Reply within 5 business days to avoid forfeiture of your claim.
The tells:
- They found you, not the other way around.
- A fee to get your own money back.
- A deadline.
A training example written for this site. Names, numbers and links are made up, and links are disabled.
What to do
- Never pay to get money back.
- Check refund programs on the agency's official .gov website.
If you already paid or shared information
- Contact the company you used to pay (your bank, card company, gift card company, payment app or wire service) right away and ask them to reverse the payment.
- If you shared a password, change it now and turn on two-factor authentication.
- If you gave out your Social Security number or other ID details, go to IdentityTheft.gov for a recovery plan.
- Report it to the FTC at ReportFraud.ftc.gov. For scams that happened online, you can also report to the FBI at ic3.gov.
From FTC: What to do if you were scammed.
Latest alerts about this scam
- FTC ·Have you lost money to a scam? Watch for scammers who say they can help
They’re the worst of the absolute worst: scams that target people who have already lost money to a scam. If you or someone you know paid a scammer, watch for scammers who pretend they can help get the money back.
- FTC ·Can you spot debt relief scams that target the military?
Scammers promise to solve your debt problems to trick you into paying them instead of your actual lender. If a caller offers to help you enroll in a special “military debt forgiveness” program, pause.
Sources
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