‘Reprehensible’: Warning as scams targeting previous victims by promising financial recovery rise 129 per cent

Australians have been warned to stay vigilant as one particular scam that preys on vulnerable people is on the rise.

Australians are being urged to stay vigilant as the number of criminals targeting victims of previous scams by promising financial recovery is on the rise.

The National Anti-Scam Centre issued a caution to Australian victims of scams amid a rise in reports of scams with a money recovery element.

Victims are typically promised their losses can be recovered for an upfront fee, a percentage of the lost funds, or a tax payment, but are then scammed again.

The criminals even claim they’re able to retrieve lost cryptocurrency and ask for personal details to “verify their identity” or set up a cryptocurrency wallet.

They may even create professional looking websites or give victims detailed guides and other paperwork as part of the guise.

Australian Competition and Consumer Commission deputy chair Catriona Lowe explained how one victim had suffered a succession of scams following a money recovery con.

“For example, we know of a person who was the target of multiple scams in succession. 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,” Ms Lowe said.

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

Scamwatch received 158 reports with total losses of more than $2.9m between December 2023 and May 2024 for scams with a money recovery element, which included losses from the original scam.

That’s a 129 per cent increase compared with the six months prior, although financial losses declined by 29 per cent from $4.1m.

Money recovery scams increased by 129 per cent between December 2023 and May 2024 compared with the six months prior. Picture: iStock

Australians aged 65 and over suffered the highest losses on average and were the largest reporting group.

Ms Lowe branded the money recovery scams as “damaging and cruel”, with scammers often posing as trusted parties such as government agencies and lawyers.

“Criminals prey on people who have already been victims of a scam who hope to get their money back. They are another example of scammers’ willingness to exploit people’s desperation at a vulnerable moment,” she 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.”

Revictimisation is of particular concern to the ACCC that can “compound both the financial and emotional harm caused by scams”.

Two websites used for recovery scams have already been identified and referred for action, with one already being taken down.

“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.” Ms Lowe said.

Victims are encouraged to report the scam to police and contact their financial institutions.

For more advice on how to identify and report scams head to the ACCC.

Originally published as ‘Reprehensible’: Warning as scams targeting previous victims by promising financial recovery rise 129 per cent