How Recovery Scams Work

Preventing cons by Asset Recovery Firms

Many con artists exist, who possess different tactics whose goal is to obtain the cash you have toiled to make. Some falsely play the role of relatives whom you have not seen in a while, pretending they have an issue and need assistance from you.

Others lie that they are staff from the IRS (Internal Revenue Service) and threaten to take legal action against you if you fail to send money to them. A person may also communicate with you saying you have won a prize and you need to pay an amount for you to get it.

It is painful to fall victim to some of these fake schemes that swindle money. However, falling victim twice is worse, particularly to a person who guarantees that they will recover your assets. Fraudulent recovery companies target financial cons victims and promise that they can recover the money that is lost if you pay them an amount in advance. It is an attractive offer; however, there is one issue. They do not deliver on their promise and take off with the advance payment.

Below is what you need to know about how people like these operate, and the warning signs to avoid these expert swindlers from conning you.

Recovery Scams List

Action Refund Titan Fund Recovery

Important Tips

– Swindlers usually sell lists of people’s names and their contact numbers; these are people who have already become victims.

–  Many ‘asset recovery firms’ contact these earlier victims directly and give their word that they will take action to assist them.

–  If a firm asks you for advance payment, use forceful methods, demand secrecy and guarantee inside connections, this is a red flag; they are conning you.

Methods that Asset Recovery Frauds use

It remains a mystery how the swindlers obtain the names of the unlucky con victims. Many scammers list down individuals who are conned and sell that data to others, such as asset recovery con artists.

These individuals get in touch directly with earlier victims who have been conned substantial amounts of money and say that they are skilled in recovering the person’s money.  Victims are ready to take any measures to recover their money and part with the upfront fee quickly. It ranges from several hundred to thousands of dollars, making them even more broke. In the end, the ‘asset recovery’ individuals do not recover any assets. Any attempt by the victims to follow up is met with lies or, they are even unable to reach anyone on phone.

On a rare occasion, the asset recovery firm may use a different method and deliver services. However, these are the main steps the consumer can take without paying any money; for example, an individual who pays using a credit card for an item in the earlier scam. 

The asset recovery firm will act on their behalf and refute the fee with the credit card farm and charge a significant amount of cash to do this. They claim its for the time, efforts, and what they term as ‘legal expertise. All you need to do to dispute an item is calling the card issuer. They have whole departments meant to deal with this kind of issue, and the cardholder does not pay anything.

These fake firms often present a grievance to an agency such as CFPB (Consumer Financial Protection Bureau) and request you for money to cater for the costs of this task. However, the CFPB describes a public regulatory agency whose services are free. Other swindle tactics involve filing old claims that are invalid according to the law, or claims that lack appropriate supporting documents.

How to detect a con

In what way can consumers tell that an asset recovery firm is not genuine? The CFPB says that an obvious indication that all is not well is if the firm requests for an advance payment from you. If you are asked to pay money upfront, take this as a bad sign. Many certified companies do not ask for payment, until they deliver the services.

Consumers need to be cautious about any company that:

–  They use forceful methods and demand immediate action. Being a consumer means that you are at liberty not to make any hasty financial decisions, and you can ask for advice. Be wary of companies that refuse to grant you that time.

– They allege to have government connections or inside data that can assist you to recoup your lost valuables. Filing a complaint with a federal agency is free. So any company that claims it has special contacts or access is likely to be lying.

–  A company that demands that you should not ask your family  members,  legal advisors, or friends for advice or supporting service that doesn’t work.

 –     If you have lost money in a recovery asset swindle you are  fortunate because you have some respite. If you paid for a service using a debit or credit card, get in touch with your credit card firm or bank as soon as possible to inform them of the con  and avoid your card from incurring more charges. If you lodge a dispute in 60 days, you can recover your losses.  It would be best for you to also communicate with local authorities and file complaints with the FTC and the CFPB.


Nowadays, frauds to gain cash are becoming relatively prevalent, and consumers need to be wary of any efforts to swindle money. It includes people who were earlier conned, enticing them with fake assurances that the firm can recoup all the money that was lost.

The most this schemer will do is ask you to pay for what you did willingly. But in a worst-case scenario, they will charge you for not taking any action at all.

Any company that asks you to submit money beforehand, alleges to have connections with law enforcement agencies and regulators, exerts pressure on you, or asks for secrecy is a warning sign. The ideal step to take if such people reach out to you, particularly if you have not asked for assistance, is to refuse to talk to them.