Getting taken by an investment scam once is bad enough, but did you know that if you’ve been a victim, you may be on a list to be targeted again?
There is a type of scam whose only victims are those who have already fallen for an earlier fraud. This scheme is often referred to as a “recovery room operation”, “advance fee scheme”, “reload scam”, “re-up scheme” and “re-victimization scam”. Whatever the name, this scheme operates on the premise that there are people willing to help you recover the money you lost when you were previously victimized.
If someone contacts you who says that they can help you get your money back from a previous scam, be cautious. Sometimes these scam artists will claim to be lawyers pursuing a law suit against the scammers. In other cases, a caller will claim their firm represents an investor who has made so much money in the stock market that they need to have capital losses to claim against their annual capital gains, so they ask you to sell your old, worthless shares at an inflated price.
Regardless of who these callers claim to be, they will almost always say they require a fee upfront to cover the “administrative costs” of recovering your money. This administrative fee will likely go straight to their pockets, making you a victim once again.
You may be able to determine if the call is coming from outside Canada (either through call display, or what the caller admits themselves), which should raise a red flag immediately, as it is always more difficult to recover funds that have gone offshore. You should ask yourself how the caller came to acquire your personal contact information in the first place.
Unfortunately, the ASC is receiving reports about this type of scam currently taking place in Alberta. Though we’ve blogged about recovery rooms before, the fact that we’re still getting calls about the topic means it’s worth repeating. For more detailed information about how to protect yourself, click here.
If you believe that you or someone you know has been a victim of a recovery room investment scam, contact ASC Public Inquiries at 1-877-355-4488 or inquiries@asc.ca.