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Assets Recovery Scams and How to Avoid Them

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July 11, 2023 · 5 min read

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How to Identify a Recovery Scam Company: Red Flags to Watch Out For

With the rise of online scams and fraudulent activities, it’s essential to stay vigilant and protect yourself from falling victim to Assets Recovery Scams. Assets Recovery Scams target individuals who have previously been victims of scams, promising to help them recover their lost funds or assets. However, these fraudulent companies operate with the sole purpose of deceiving and extorting more money from their victims. In this blog post, we will discuss some red flags that can help you identify a scam recovery company and protect yourself from further financial harm.

Unsolicited Contact:

One common red flag is receiving unsolicited contact from a recovery company. Legitimate recovery firms typically operate on a referral basis or are sought out by individuals actively seeking assistance. If you receive an unexpected email, phone call, or message from a recovery company claiming they can help you recover your lost funds, exercise caution, and investigate further before engaging with them.

Note: Cybertrace does not conduct outbound sales. We are aware there are scammers contacting victims and impersonating our company.

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Lack of Transparency and Credentials:

Assets Recovery Scams often lack transparency regarding their company details, the legal operators and owners, credentials, licensing, insurance, and regulatory and professional affiliations. Legitimate recovery firms are transparent about their background, licensing, and professional affiliations. Before engaging with a recovery company, research their website, check for verifiable contact information, and look for testimonials or reviews from reputable sources. Additionally, confirm if they are registered with relevant regulatory authorities or industry associations. Don’t simply accept their word for it, double-check everything.

For example, the Cybertrace website provides details of the following licensing, accreditation, and background.

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.

Professional Background: Our ‘About’ page details the relevant professional background of the Executive and company owners.

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.

Insurances: Cybertrace holds Professional and Management Liability insurance. Copies of our policies are available on our ‘Accreditation’ webpage.

Professional Accreditation: Cybertrace’s industry associations are listed on our ‘Accreditation’ webpage.

High-Pressure Tactics:

Scammers employ high-pressure tactics to create a sense of urgency and manipulate victims into making quick decisions. They may use fear, guilt, or false promises to coerce you into providing personal information or making payments. Legitimate recovery companies will provide you with all the necessary information, allow you time to make informed decisions, and never rush or pressure you into taking immediate action.

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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.

Unrealistic Promises

When dealing with a company offering Asset Recovery after being scammed, exercise caution when encountering individuals who make guarantees of asset recovery. The process of Assets Recovery is highly intricate and challenging. It is important to understand that recovering funds from international criminal syndicates is far from easy, and anyone claiming otherwise is likely a scammer. Realistically, Assets Recovery is an expensive and time-consuming endeavor, often stretching over several years without guaranteeing a favourable outcome, although there may be occasional exceptions to this general rule. For more information, read our article on ‘The Real Assets Recovery Process’.

Protecting yourself from Assets Recovery Scams necessitates a diligent, skeptical, and well-researched approach. It is crucial to stay informed about the warning signs associated with fraudulent recovery companies in order to minimise the risk of enduring further financial damage. One key aspect is verifying the legitimacy of any recovery firm before engaging with them. Conducting thorough background checks on the company, including reviewing their credentials, client testimonials, and online presence, can provide valuable insights into their reputation and track record.

Furthermore, it is important to be cautious of recovery firms that pressure you into making immediate decisions. It’s important to note that upfront payment is not a red flag as most reputable asset recovery companies work on a contingency basis, where they receive payment for their services in advance to cover operational costs and charge a percentage of the recovered funds as compensation. However, if an Assets Recovery company insists on upfront payments and uses coercive tactics, it does raise red flags.

In cases where you have doubts or suspicions about a recovery company, seeking guidance from a legal professional or contacting your local regulatory authorities can provide valuable advice and assistance. These entities can help verify the legitimacy of the company and offer guidance on how to proceed.

Remaining vigilant and trusting your instincts are essential in safeguarding yourself against Assets Recovery Scams. If something seems too good to be true or raises doubts, it is crucial to exercise caution and further investigate the situation. By empowering yourself with knowledge, you can make informed decisions that protect your hard-earned money and avoid falling victim to fraudulent schemes.

Tags: Assets, Assets Recovery, Assets Recovery Scams, How to identify an Assets Recovery Company

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