The Belgian Financial Services and Markets Authority (FSMA) has alerted the public about seven companies involved in a deceptive scheme known as “recovery room fraud.” This scam specifically targets individuals who have previously fallen victim to investment fraud, luring them with false promises of fund recovery services.
What is a “Recovery Room Scam”?
According to the FSMA, these companies prey on victims by offering fake recovery assistance, only to defraud them again. The scam typically involves demanding upfront fees for fabricated legal or administrative costs. In some cases, scammers request remote access to the victims’ computers, further endangering their finances.
The seven companies identified by the regulator include Akin, Bitcity, Concord Services, Ledgible, Recovery AI, Trade Control, and World Blockchain Organization. They often operate through websites that appear legitimate but are designed to deceive individuals into trusting their services.
Victims Targeted Again
“Victims of investment fraud are often scammed twice: first through the initial investment fraud, and later through the recovery room scam,” the FSMA warned. After the initial scam, the victims’ contact information may be sold to other fraudsters, putting them at greater risk of being targeted again.
Scammers may also pose as reputable entities such as law firms or financial regulators to gain victims’ trust. They often reach out through unsolicited calls or emails, claiming to provide official recovery services, only to ask for payment under false pretenses.
Methods Used in the Scam
The fraudsters use several methods to further exploit victims. Some pretend to be offering free recovery services, only to install malicious software that gives them remote access to victims’ banking details. In other cases, they convince victims to create digital wallets on cryptocurrency platforms, which are then used to siphon funds.
FSMA’s Warning to the Public
The FSMA urges anyone who has been a victim of investment fraud to be extra cautious if contacted by entities claiming to offer recovery services. The agency highlights that legitimate recovery services will not demand upfront payments or access to personal devices.
Individuals who suspect they are being targeted should report the incident to the relevant authorities and avoid any engagement with the suspicious entity.
