Recovery-room scams: seven warning signs

A recovery-room scam targets someone who has already lost money. The caller may know the original platform, amount or other details because information has been shared or sold. That knowledge should not be treated as evidence of authority. The follow-up pitch may claim to be a regulator, lawyer, investigator or buyer of a failed investment.

Warning signs include unsolicited contact, a guaranteed recovery, a supposedly recovered balance, an upfront release or tax fee, pressure to act, unverifiable professional credentials and requests for sensitive access. The FCA warns that websites may contain fabricated recovery successes. A convincing document can still be counterfeit.

Pause the conversation and verify every claim through an independent channel. If the caller impersonates an authority, visit the authority's actual website rather than using the supplied number or link. Preserve the contact and payment details for reporting. A legitimate provider should tolerate questions and a decision not to proceed.