Australians are being warned to watch out for scammers targeting victims trying to get their money back, with millions already lost.

The Australian Competition and Consumer Commission said $2.9 million had been lost by 158 people in the six months to May from scams involving so-called “money recovery”.

That’s when victims of previous scams are targeted a second time by a group pretending to be able to recover their money.

“Money-recovery scams are damaging and cruel. 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,” ACCC deputy chair Catriona Lowe said.

“Scammers pose as trusted parties such as government agencies, lawyers, or even charities. 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.”

The ACCC said the number of reports of money-recovery scams had soared 129 per cent in the six months to May, though financial losses fell 29 per cent from $4.1 million.

If you’ve been scammed, watch out for offers to help you recover your money for a fee. Don’t accept these offers, contact your financial institution to attempt to recover any money stolen through a scam. Learn more: https://t.co/wSMjbuDfGE pic.twitter.com/At24cV3i1J

— NASC Scamwatch (@Scamwatch_gov) July 9, 2024

What to watch for

The insidious part about the scam is that it aims to revictimise people, with those who were more likely to fall for the first scam also being identified as easier targets for a second round of fraud.

Criminals will contact scam victims and pose as a trusted party, like a government agency, cyber security firm or consumer group.

This happens through email, phone calls, mobile apps, social media or text message.

Victims are told their money can be recovered for an upfront fee, a percentage of the lost funds, or a tax payment.

“They even tell victims that they can track down lost cryptocurrency,” the ACCC said.

Scammers will ask for personal information and might also request to remotely access a device themselves.

Also be on the look out for people pretending to be victims of a scam themselves, as they’ll often refer you to dodgy “recovery” services.

“To appear legitimate, criminals may make use of websites advertising their services that look professional or provide victims with detailed guides and other paperwork as part of the ‘recovery’ process,” the ACCC said.

Protecting against scams

The ACCC has persistently advised Australians to employ a three step system to avoiding scams: Stop, Check, Protect Yourself.

Their key advice to people who have been scammed before is to be vigilant against future attempts.

“If you have been scammed before and see an ad or are contacted by someone with an offer to help recover money for an up-front fee, it’s a scam,” the ACCC said.

“Say no, hang up, delete and block any repeated attempts of contact.”

Australians should always verify who they’re speaking with before handing over any personal information or money to someone that makes contact.

“Never accept offers from anyone who contacts you and says they can get your money back. Make all requests to recover your money to your financial institution and report to the police,” the ACCC said.

“Don’t give financial, cryptocurrency or account details, or copies of your identity documents to anyone online who you’ve never met in person.”

If you’ve encountered a suspected scam, or have been the victim of a scam, report it to SCAMWATCH.