Financial Fraud Recovery Claims

What is Considered a Scam?

An authorised push payment (APP) scam occurs were a victim has been tricked into sending money to a scammer believing that they were;

• Investing in a genuine investment scheme, or;
• Purchasing genuine goods, or;
• Making a payment to a genuine person / friend / romantic partner who they met online, or;
• Following the instruction of a genuine company / figure (e.g. the bank / HMRC).

What Can Our Fraud Solicitors Help You Recover

We can help you make the following:

• A recovery claim for the money lost (over £3,000) as a result of a scam.
• A claim for interest on the funds lost as a result of a scam.
• A claim for inconvenience and stress caused as a result of a scam.

What is an Investment Scam?

An investment scam occurs when a scammer encourages a victim to invest their funds into a false investment company.

Many scammers will act as accounts managers/brokers. The will offer false guidance and support to victims throughout the scam, making these scams extremely convincing and sophisticated.

Once funds have been invested, an investment scam will conclude:

• with victims being left with no way to recover their invested funds and ‘profits’ from the investment account or
• contact ceasing between themselves and the scammer.

Investment scams are considered a form of authorised push payment fraud as the victim authorised the payment themselves. However, they were unaware at the time that they were falling victim to a scam.

There has been a drastic rise in investment scams since the introduction of cryptocurrency.

Unfortunately, more and more people are falling victim to these scams, with the banks often not doing enough to protect their customers from the risk of financial harm.

How do scammers target their victims in investment scams?

It is common to see scammers post professional adverts online to lure victims in. The ads often promise excellent rates of return and small start-up fees.

In addition to this, scammers often set up fake websites that look just as a genuine company website would be expected to look. The websites make it extremely difficult for victims to spot that they may be at risk.

Scammers also use methods such as unsolicited correspondence (messages) and cold calls to sell their investment services to victims. They can be very persuasive and manipulative, enticing victims to begin investing sooner rather than later.

Red flags to look out for

• Attractive investment opportunity typically advertised on social media, or using fake celebrity promotions
• Initial small payment of around £250
• Fake investment activity, ofter on a platform, portal or account.
• Escalation in requests for funds
• Withdrawal issues
• Platform or portal becomes inaccessible, and scammers are no longer contactable

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What is a Job/Mission Scam?

A job/mission scam occurs when a scammer offers a victim a false job opportunity, usually for remote or online work.

Many scammers will present themselves as recruiters, employers or representatives of genuine companies. They will offer victims the opportunity to earn money by completing simple online tasks or ‘missions’, making these scams extremely convincing and sophisticated.

Once the victim begins completing tasks, a job/mission scam will often conclude:

• with victims being asked to send their own money to complete further tasks or unlock their supposed earnings or
• contact ceasing between themselves and the scammer, leaving victims unable to recover the funds they have sent.

Job/mission scams are considered a form of fraud where the victim is deceived into authorising payments or providing sensitive information. The victim believes they are carrying out legitimate work and earning money, when in reality they are being manipulated into sending funds to the scammer.

There has been a significant rise in job/mission scams as more people look for flexible and remote employment opportunities.

Unfortunately, more and more people are falling victim to these scams, with scammers using increasingly sophisticated techniques to make fake employment opportunities appear genuine.

How do scammers target their victims in job/mission scams?

It is common to see scammers post professional-looking job adverts online to lure victims in. The adverts often promise flexible working hours, simple tasks and attractive rates of pay.

In addition to this, scammers often set up fake websites, recruitment profiles and online platforms that appear to belong to genuine companies. These websites and platforms can make it extremely difficult for victims to spot that they may be at risk.

Scammers also use methods such as unsolicited correspondence (messages), social media and messaging applications to contact potential victims about supposed job opportunities. They can be very persuasive and manipulative, encouraging victims to begin completing tasks quickly.

In some cases, scammers may initially allow victims to withdraw small amounts of money or show false earnings on an online platform. This can make the opportunity appear genuine and encourage victims to send larger sums of money.

AI is also becoming increasingly prevalent in these scams. Scammers can use AI to produce professional-looking job adverts and messages, hide spelling and grammar mistakes, create convincing websites and, in some cases, make calls or communicate directly with victims. This can make it even more difficult for victims to identify that they are dealing with a scam.

Red flags to look out for

• An unsolicited job offer is made usually though WhatsApp, Telegram, social media, text or email
• High value, easy earning promised, if it seems too good to be true it nearly always is
• Deposit/top ups are required in order to ‘unlock higher value tasks’ or keep their account from becoming dormant.
• Small withdrawals are often provided early on to build trust.
• Being told your ‘negative balance’ must be rectified before you can continue ‘working’.
• Increasing financial commitment, whereby it gets to the stage where the victim can no longer afford to continue
• Pressure to borrow funds from friends, family or loans to continue ‘work’ or else ‘lose all of their commission’.
• Withdrawal issues.

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What is an Impersonation Scam?

An impersonation scam occurs when a scammer poses as a genuine company/authority to pressure victims into making payments to them.

The most common types of impersonation scams are:

• Bank scams,
• HMRC scams,
• Service provider scams (Sky, Virgin Media etc.).

Impersonation scams are considered a form of authorised push payment fraud as the victim authorised the payment themselves. However, they were unaware at the time that they were falling victim to a scam.

How do scammers target their victims in impersonation scams?

The most common way scammers target victims in impersonation scams is via cold calls or unsolicited correspondence (messages).

Scammers will often place an immense amount of pressure on victims during impersonation scams.

For example, by telling them their bank account has been compromised and there is a high chance that their funds are at risk.

This deliberate tactic is used to create panic to ensure victims move their money quickly without thinking through the transaction or seeking further advice.

Note: Victims may often be asked to install remote access software, such as AnyDesk, to allow scammers to gain access to their device and access their funds. No genuine company will ever ask you to do this.

Red flags to look out for:

• Guarenteed or unusually high returns
• Pressure to invest quickly
• Being contacted unexpectedly
• Being told the opportunity is ‘exclusive’ and ‘time sensitive’
• Cryptocurrency payments or payments to unfamiliar wallets
• Difficulty withdrawing funds
• Pressure to continue to add funds quickly

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£17,000 Recovered from Revolut After Sophisticated Impersonation Scam

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What is a Romance Scam?

Romance scams occur by scammers making contact with victims online.

Scammers will then take time to develop a trusting relationship to trick victims into believing they are a genuine friend/romantic partner.

Romance scammers will then request money from their victims. Sometimes with the promise that the money will be returned in the near future.

Once the money has been transferred, scammers will then cease contact with the victim, leaving them no way of recovering their funds.

Scammers will use tactics to pressure and emotionally manipulate victims into sending money to them. For example, creating a narrative that the money is needed urgently for medical bills.

Investment scams are considered a form of authorised push payment fraud as the victim authorised the payment themselves. However, they were unaware at the time that they were falling victim to a scam.

How do scammers target their victims in romance scams?

Scammers will often make contact with their victims on social media, posing as someone they are not.

Scammers will dedicate time to building an established social media platform to ensure the profile looks genuine to victims.

Often, they also create fake profiles on trusted dating platforms which most people expect would be subject to strict verification processes.

Red flags to look out for:

• Scammer usually reaches out first on dating sites, Whatsapp, Facebook or other social media platforms
• Rapid emotion connection, requests to marry, move in or excessive adoration, typically known as ‘love-bombing’ typically early into the communication.
• Creates distance when asked to meet up, citing work, the military or business commitments.
• Introducing and encouraging investment. Once sufficient trust is built, they may bring up that they invest in cryptocurrency or forex to trap the victim into investing with them.
• Increasing financial demands, often for travel, medical or debts that ‘urgently’ to be paid
• End of the relationship. The scammer may disappear, become threatening, emotionally manipulative, or continue asking forn money until the victim stops paying.

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What is a Purchase Scam?

Purchase scams occur when scammers pose as private sellers and advertise goods for sale online using a variety of online platforms such as:

• social media,
• eBay, or
• Gumtree.

Victims will then find that, after making payments, the goods do not arrive. The scammers will likely have ceased contact by this point leaving victims with no way of recovering their money.

Purchase scammers can advertise various of goods. However; the most common goods include:

• Motor vehicles,
• Electrical items such as mobile phones, computers or gaming consoles, and
• Holidays

Investment scams are considered a form of authorised push payment fraud as the victim authorised the payment themselves. However, they were unaware at the time that they were falling victim to a scam.

Red flags to look out for:

• Attractive offer – the price may be significantly below market value
• Payment – scammers will often trick you into transferring money, often without having seen the item in person.
• Urgency to pay – the scammer will pressure you into making payment by saying there is a lot of interest, or you need to pay now to secure it.
• The item never arrives or is markedly different from what was shown in photos
• The seller disappears, stops responding, or removes the listing
• Repeated excuses or requests for more money to deliver the item.
• Fake tracking numbers or receipts

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