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Funds Recovery Review: Recovery Room Scam

Dec 31, 2020 ,
Funds Recovery Review

Find out how recovery room scams work, how to avoid scams and what to do if you are scammed. All and more in our Funds Recovery review below.

Recovery room scams target UK consumers rapidly. This is where fraudsters approach investors who have been scammed or had failed investments, offering to help them get their money back for an upfront fee.

There is usually no explanation on how money will be recovered or, if an explanation is given, it is likely to be false or implausible. For example, falsely claiming to be the FCA or working with the Government, police or other regulator to recover any funds which have been lost. Generally, recovery rooms insist on being paid a fee or transaction charge before carrying out any services to recover any consumers losses.

How Recovery Room Scams Actually Works – Funds Recovery Review

Recovery room scams usually follow on from a boiler room or other type of investment scam where a consumer has lost money. The perpetrators of the original scam may operate the recovery room and contact the victim again pretending to be from a different firm or sell on their details to other recovery rooms. The scam tends to involve cold calling with high-pressure tactics and upfront charges described as a tax, solicitor or administrative fees, which can result in losses that can be greater than the initial loss.

The recovery rooms often have professional-looking websites to persuade visitors they are legitimate and claim to have a UK presence when they don’t. These websites often make false claims to have successfully recovered money for other consumers involved in scams.

Recovery rooms generally use a web-based email address, such as gmail, Yahoo, Hotmail or Russian search engine, yandex. The FCA never uses webmail providers to contact consumers, nor does the Government, law enforcement agencies or law firms.

Funds Recovery Review: Masters of Scamming

Companies like Funds Recovery contact victims they’ve already ripped off claiming they work with law enforcement and that they can help them recover their money. If you thought there were limits to how low a telemarketing scammer would go, guess again. Some telemarketers re-contact their victims in order to con them out of even more money. “Recovery-room” schemes are scams that occur after one telemarketing scam has already taken place.

Once the first telemarketing scam has drained most of the victim’s money, they become desperate to get their money back. Victims feel foolish and embarrassed, this situation seems so frustrating. They fear reporting what happened to the authorities. This is where the “recovery room” scammers step in to save the day.

The Crooks claim to be Recovery Specialists

A scammer from the “recovery room” calls the victim posing as a representative of a government agency or organization that aids scam victims and says they can help recover some of their losses. Some recovery room scammers pose as FBI, IRS or Customs agents. Others pretend to be attorneys from law firms or representatives of government agencies including the local district attorney’s office. They could claim to be any one of many things, and it’s usually music to a victim’s ears.

In many instances, the telemarketer is involved in a scam the victim lost money from. Because of this, they are aware of many details regarding the earlier crime including how much the victim was defrauded. This makes the caller appear well-informed of the victim’s predicament and gives them credibility. Who else would have this kind of information other than law enforcement?

Funds Recovery Review: Buying Time To Get Away With Your Money

In order to get their money back, they tell the victim that there’s a must to pay a fee. Once customers pay the fee, the court will release their money and transfer or deliver it to them. This ugly scheme does more than add insult to injury. It means the victim is out even more money than they were before. You might call it “double dipping”. While the victims cheerfully await for their money, the telemarketer disappears into the shadows, without a trace.

A Warning from the FCA

The FCA has released a statement regarding the operations of FundsRecovery. The report says that they “believe this firm has been providing financial services or products in the UK without our authorization.” The UK has some of the best investor and consumer protections globally, with the FCA serving as the ever-vigilant watchdog for any potential hazards. Any organization that offers financial services to residents of the UK must do so with the FCA’s authorization. They strongly advise against dealing with any financial firm that does not have that approval.

Funds Recovery does state on their website that they can advise, refer, or assist in any way any residents of the UK. While this is certainly a disturbing sign, an organization that would flagrantly act against the FCA regulations. It is disconcerting that a financial firm wouldn’t be able to operate in one of the world’s leading nations in finance. Note that the FCA also says that Funs Recovery appears to have no affiliation with the UK registered company Payback Limited, and that “it appears scammers are falsely claiming the name of this UK registered company.”

A Warning from the FSMA

The FSMA states further than the FCA’s statement that Funds Recovery is not legit. They have issued a specific warning alleging that the company is operating a type of recovery room fraud. The FSMA says that they have seen a surge in these scams in the past few months. They say that the scam revolves around charging various advance fees before they can operate, and not delivering any results for the customer. This kind of fraud is a huge red flag that everyone should avoid this company.

The regulator explicitly alleges that Funds Recovery operates unlawfully and has warned the public against doing business with them. They also say that the company is a cloned firm, a firm that has copied an authorized firm’s identity to deceive clients. They recommend that people avoid firms charging advance fees and any that have made unsolicited contact. Online Rumors suggest that behind Funds Recovery stands an evil prime – Pay Back Ltd.

Very Low Reputation On The Web

A severe warning from the regulators is a very serious deal, moreover a warning from the FSMA casts further doubt on this company. We can’t trust the services FundsRecovery claims to provide. Scammed traders must avoid making contact with this fraudulent nontransparent firm. It seems that FundsRecovery deletes most of the relevant negative comments.

Be aware of clone firms – Funds Recovery Review

Many fake firms abuse common names, firm registration numbers (FRN), and addresses of regulated firms and individuals. Known as a cloned firm. Scammers may even copy legitimate websites, making subtle changes such as changing the phone number.

How to Protect Yourself

Always be wary. If a company contacts you out of the blue claiming to recover stolen money due to fraud or due to a failed investment. Or if it pressures to hand over money quickly or promise something that sounds too good to be true. Be wary of websites, phone calls, and online or social media adverts promising to recover any money you may have lost from investments or fraud.

If you get a phone call offering to recover your losses, ask how the caller has information about your lost money. You can report fraud only between other law enforcement agencies. You should not share this info with a private business operating a recovery room. If a company asks you to pay a fee or provide your bank account, card or other financial details, end all contact immediately and do not pay any money or provide any banking details.

Recovery room scams claim to provide services usually offered by claims management companies. A firm must be authorised by the regulators to advertise or undertake these services across the world. Check the FCA’s Financial Services Register to make sure the firm is authorised. You can also check the FCA’s Warning List of firms to avoid.

Most firms advertising and offering to recover consumer funds are not under FCA’s Inspection. This means that if you pay them any fees or engage them you will not have access to the Financial Ombudsman Service or the Financial Services Compensation Scheme if things go wrong.

Funds Recovery Chargeback Services

The main area that Funds Recovery emphasizes is their work in chargebacks. Chargebacks is a process where an account holder requests that a bank or payment processor reverse a transaction, retrieving their funds. It is a powerful tool against online scammers when applied in the right situation. This company takes on any clients, even when they know a chargeback won’t work. They have no shame.

Funds Recovery Review: The Final Word

Funds Recovery seems to offer a fairly standard array of financial recovery services with the usual sales pitch most fund recovery websites provide. The warnings from two different financial regulators, are a sign that any potential clients should be wary of this organization. They don’t screen new clients, taking on hopeless cases that will waste your time and money. You can’t use Funds Recovery services at all, and nobody should be doing business with them.