Australians who have previously fallen victim to scams are now facing a new threat: recovery scams promising to recoup lost money for an upfront fee. The National Anti-Scam Centre highlights a worrying trend with more than 158 reports made to Scam Watch in the past six months alone.
Facebook is the biggest source of victims for scammers in Australia.
Between December 2023 and May 2024, reports indicate losses exceeding $2.9 million, which incorporates original scam losses. The Australian Competition and Consumer Commission (ACCC) warns that individuals previously scammed are more vulnerable, as their personal data is often retained or sold by perpetrators. The ACCC identifies those aged 65 and older as the most affected group, typically experiencing higher financial losses.
Deputy Chair Catriona Lowe describes these money recovery scams as particularly damaging and heartless, targeting individuals already exploited. Scammers often impersonate credible entities such as government bodies, law firms, or even charities. “We are also aware of criminals pretending to be victims themselves, claiming that a particular person or organization assisted them in recovering their money,” Lowe stated. This form of revictimization compounds the financial and emotional distress caused by initial scams.
In one alarming case, an individual fell prey to a series of scams: starting with a romance baiting investment scam, followed by a money recovery scam, a remote access scam, and ultimately identity theft. Criminals also lure victims through fraudulent online ads.
The National Anti-Scam Centre has initiated action against websites facilitating recovery scams, successfully dismantling one so far. However, the ACCC cautions that once funds are transferred overseas, recovery is highly improbable.
As part of its ongoing efforts, the ACCC urges scam victims to remain vigilant and skeptical of unsolicited offers claiming to retrieve lost funds.
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