The Securities and Exchange Commission (SEC) has issued a stern warning to the public about fraudulent services that promise to help victims recover funds lost in previous scams but are designed to deceive them a second time.
These schemes, often called “recovery scams” or “advance-fee recovery scams,” are being promoted through Facebook pages, online groups and other social media platforms, the SEC said in an advisory.
It said the operators of these schemes are not authorized by the commission and have no legal authority to provide recovery services.
Scammers typically offer the recovery of funds previously lost to fraudulent schemes in exchange for advance fees or personal information.
The SEC said to appear legitimate, the operators often misrepresent their affiliation with government agencies or law enforcement, fabricate testimonials, documents, or credentials and use high-pressure tactics to persuade victims to use their services.
“The commission warns the public not to transact with, remit any sum to, or disclose personal information to such individuals or groups,” the SEC said in a statement.
“Victims of scams are strongly urged to lodge their complaints directly with the proper authorities for appropriate action,” it said.
The commission reiterated its commitment to fighting illegal investment activities.
“The commission remains unwavering in its efforts to stamp out illegal investment-taking activities through financial literacy campaigns and advisories to the public,” the regulator said.
