With the advent of technology in the banking and financial sectors, scams have wormed themselves up to be the major undesirable consequence of the technological revolution. Phishing and duping are some of the crimes that have seen a drastic increase. However, there is one more type of organised crime in the techno-banking sector that is fast rising up the ranks in terms of notoriety – that of the asset recovery firms and companies making tall claims of recovering the stolen money and in turn stealing more money from the customer without any accountability. In such cases, it becomes important to identify the potential scam before it dupes the aggrieved customer off even more amount of money.
A good way of avoiding the crime committed by these asset recovery companies is to learn the mechanism by which such companies function on a daily basis. A large chunk of their functioning rests on the information obtained by the companies about the aggrieved customers and their financial losses. Based on this information, the affected parties are then called up and promised the restoration of their money in exchange for more sums of money to be paid by the customer to these companies. Some companies, functioning in a more brazen manner, take the money altogether and then disappear, leaving no obvious traces connecting the crime to themselves and their proprietors. Others committing a comparatively milder quantum of the offence may charge the customer for the services which are available to them free of cost – including reporting to the Consumer Financial Protection Bureau (CFPB). Elsewhere, the companies may also try to pull over wool in front of the customer’s eyes by filing fraudulent claims on their behalf, thereby further endangering their cases without their knowledge, for a hefty sum of money.
The best way for customers to avoid facing an asset recovery scam is to be on an active lookout for such agencies. A good warning sign, according to the experts, is the time period when the customers are asked upfront for fees involving the proceedings. Since most of the reputable firms do not charge their customers unless absolutely required in the course of action, a request for upfront payment of fees is a sure way to identify a potential scamming agency.
Another way of identifying a potential scamming agency is to detect when the company uses aggressive tactics to make the customers pay them money in lieu of the offering their advice for recovery of the original asset.The companies that claim to have inside information and government know how are also potential scammers since reporting to the federal agencies is free of cost. Also, since the legal procedures in these cases require complete transparency, any asset recovery firm demanding secrecy from the side of the customer is probably lying to the customer about the proceedings and likely to commit a scam against them.
These are the warning signs and potential strategies of discovering and staying safe from the scamming asset recovery companies that bait on aggrieved parties for their illegal profit. Investors and their aggrieved acquaintances are advised to stay away from such parties and report them to Federal Trade Commission at the earliest to prevent the occurrence of such financial crimes in the future.