5 Red Flags to Look Out For When Dealing with Asset Recovery Companies
Online scams and fraudulent cyber activities are rife in the current times. To add another layer of complication to the dark ecosystem of online scammers, Assets Recovery Scammers prey on scam victims, hitting them at their most vulnerable moment. Targeting victims of cybercrime, fraudulent companies’ goal is deceiving their victims and often also extorting them for more money. In this article we will explore some of the red flags that will help you understand how to identify a scam recovery company before they can exploit you.
Red Flag 1: When ‘Assets Recovery’ Companies Contact You Out of the Blue
A very common red flag is when a so-called Assets Recovery Company contacts you and offers unsolicited support.
Recovery firms that are operating legitimately generally operate through referrals or by individuals seeking them out themselves. If a recovery company seeks you out via email, phone call or direct messaging on a platform and offers help with recovery of lost funds, be very wary. Exercise caution, investigate further and above all, do not take what they say at face value.
Please note: Cybertrace does not conduct outbound sales. If you hear from a company claiming to be us, please contact our friendly staff directly via our contact details before engaging with whomever has contacted you.
Red Flag 2: Lack of Transparency and Credentials:
When someone is promising to help you, it can feel rude to check for credentials, but we cannot emphasise enough how important it is to check, especially when it comes to Assets Recovery Scams. More often than not, Assets Recovery Scams will present with scant detail as to their company details, credentials, licensing, registration, insurance, regulatory and professional affiliations. We cannot emphasise enough the importance of checking for verifiable contact information and testimonials or reviews from reputable sources before you engage any kind of recovery company. Also check up on their affiliations and registrations with relevant regulatory and/or industry bodies. It’s vital that you don’t just believe what they tell you and look into them as deeply as you can.
Legitimate recovery companies will openly share with you their background, licensing and professional affiliations.
To give you an example of what the licensing, accreditation and background of a legitimate company should look like, Cybertrace’s website provides the following details:
Registered Company: Cybertrace Pty Ltd. is an Australian Limited Liability company registered in 2015. A copy of the company extract is available on our Accreditation webpage.
It’s also important to assess the professional background of any company purporting to recover assets.
Professional Background: Our About page details the relevant professional background of the Executive and company owners.
Cybertrace’s About page displays the relevant licensing background of the Executive and company owners and any Assets Recovery Company should do the same.
Professional Licensing: Cybertrace is a government-licensed investigations company with licenses in Australia and the Netherlands. We have been fully licensed since 2015. A copy of our Australia license is available on our Accreditation webpage.
Assets Recovery Companies should hold insurance. In contrast to the Assets Recovery Scams trawling the web looking for victims, Cybertrace holds Professional and Management Liability insurance. Copies of our policies are available on our Accreditation webpage. Cybertrace’s industry associations are also listed on our Accreditation webpage.
Insurances: Cybertrace holds Professional and Management Liability insurance. Copies of our policies are available on our Accreditation webpage.
Assets Recovery Companies should also be accredited.
Professional Accreditation: Cybertrace’s industry associations are listed on our Accreditation webpage.
Red Flag 3: High-Pressure Tactics
An important step in understanding how to identify a recovery scam company is building your awareness of high-pressure tactics.
Scammers of all varieties employ high-pressure tactics to create a sense of urgency or manipulate victims into making impulsive decisions. Assets Recovery Scams are no different, however, they add a bonus tactic of exploiting the sense of urgency that their victims are already feeling, due to having already lost assets.
Assets Recovery Scammers play on peoples’ deepest feelings of distress by trying to trigger even more fear, guilt or shame. They even stoop to making false promises to pressure you into making payments to them or providing personal details.
Legitimate recovery companies will transparently provide you with the information you need to take informed decisions and give informed consent to their recovery process. A legitimate recovery company will also patiently allow you the time you need to make decisions, without rushing you pr pressuring you to take action.
Red Flag 4: Lack of Verifiable Track Record
A reputable recovery company should have a verifiable track record of successful cases and satisfied clients. Scammers often lack any credible evidence of past successes or failures to provide references that can be independently verified. Ask for specific examples of cases they have successfully resolved, and if possible, reach out to those clients to confirm their experiences. Many Assets Recovery Scam companies create fake testimonials and reviews to trick victims into believing that they are legitimate.
Red Flag 5: Unrealistic Promises
If you have been scammed and you are now taking a positive step towards asset recovery, please exercise extreme caution when dealing with any individual entity who guarantees recovery of your assets. It is vital that you become skilled in knowing how to identify a recovery scam company.
Legitimate Assets Recovery is complex and challenging. Skilled assets recovery investigators engage a highly intricate process and will tell you honestly that recovering funds from international criminal syndicates is not easy. Anyone who attempts to claim otherwise is more than likely a scammer.
In real terms, recovering assets is expensive and takes time. It can continue for several years with no guarantees of a favourable outcome for the victim. For a deeper understanding on this, read our article on ‘The Real Assets Recovery Process’.
Conclusion
When you research the Assets Recovery company you are considering contracting, it is best to take a rigorous, sceptical and thorough approach. Doing so will likely protect you from Assets Recovery Scams. It’s always in your interest to be informed about the warning signs that a fraudulent recovery company will present.
Thorough background checking, reviewing credentials, client testimonials and appraising the company’s online presence are things you can do to judge whether they are a legitimate company or not.
Furthermore, noticing if they are pressuring you into making quick decisions is another important defence against Asset Recovery Scams.
It’s important you are aware that asking for a payment upfront on its own is not a red flag. Most reputable asset recovery companies work on a contingency basis, in the sense that they require payments upfront to cover their operational costs and charge a percentage of the recovered funds as compensation. However this payment structure can become a red flag when combined with high-pressure sales tactics, coercion and manipulation.
If you are not sure about the legitimacy of a company claiming to do assets recovery, contact professionals in the legal field, as well as local regulatory authorities. They can provide you with useful advice and assistance to help you to verify the company’s legitimacy and advise you on whether or not to proceed.
Tags: Assets, Assets Recovery, Assets Recovery Scams, How to identify an Assets Recovery Company
How can one check on a Financial recovery firm, if there is no way to contact them by phone or mail?
I speak of DARC who are based in London, I believe. How do I check out whether they are genuine?
Hi M,
Our team have reached out via email.