It is not a nice thing to be scammed of your hard-earned money; let alone being fraudulently approached by someone who promises to get your money back from the scammer. Be careful of any asset recovery service that makes outlandish and farfetched promises. Many of them are considered to be fictitious and will usually prey on unsuspecting victims. Most of them will take your money and do almost nothing, then disappear with your money in their hands. The fake firms that inappropriately promise financial recovery of assets will ask for a fee upfront. The real asset recovery companies won’t ask for money upfront. So, this is the first sign of fraud and you should be wary of it.
The Consumer Financial Protection Bureau has found that the problem exist and therefore, have issued a warning to consumers, alerting them of the dangers of con artists. The FTC or Federal Trade Commission in 2015 had to ban a company that was representing itself as an asset recovery service, but misleadingly claimed that they could recover financial assets for consumers. The name of the company was Consumer Collection Advocates and they promised consumers who became victims of fraudulent schemes that they would get the money back for the consumers. It is reported that this company was taking money from mostly elderly individuals who had already experienced fraudulent activities from timeshare resale and investment scam associated with precious metals.
No one knows how these unscrupulous individuals get the identity information of these unsuspecting victims, but they do. They manage to cold call individuals who have suffered financial loss and they represent themselves as being experts at collecting the money on behalf of the victims. Due to the desperation of the victims to get their financial asset back, they are willing to pay the advance fee to the asset recovery service. The asset recovery firm will usually never recoup the victim’s assets and the victims will be ‘taken for a ride’ or unable to get an answer to their phone calls when they try to ask questions.
To look as if it is legitimate, the asset recovery company will often brazenly act as if they are performing the actual service. Consumers don’t have to fall for the scheme. There are things that can be done for free. For example, if you paid for the original scam with your credit card, you can call the credit card company to cancel the transaction or dispute it. You don’t need the help of an asset recovery service. You don’t have to pay anyone to do this for you. You would be paying money for absolutely nothing. The card issuer will assist you with your complaint at no charge to you.
The Bottom Line
You can detect when a company is fake. The first clue is the request for money in advance. Most reputable companies will wait until they render services to ask for payment. Stay away from companies that use aggressive and pressure tactics to get you to act immediately. Look out for companies that tell you to avoid speaking to friends and family. File a complaint with the FTC, if you think that someone is trying to victimize you financially.