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CONSUMER ADVISORY | FEBRUARY 2016

Older consumers targeted by

fraudsters not once, but twice!

After reviewing complaints 

submitted by consumers, we 

have discovered a financial scam 

targeting older consumers who had 

previously fallen prey to fraudulent 

money-making schemes, such as 

bogus timeshare investments and 

in-home business opportunities. 

So-called asset recovery companies are contacting 

these past victims, promising to get refunds

for a substantial fee, failing to deliver promised 

services, and leaving consumers financially worse 

off than before.

What does this scam look like?

The asset recovery company contacts the 

defrauded older consumer claiming that they can 

get their money back for an upfront fee of several 

hundred to thousands of dollars. The company 

often claims it has unique expertise to help victims 

of fraud recover their funds. Once the older 

consumer pays the upfront fee, the company fails 

to perform any service that the consumer could 

not have done themselves. For example, if the 

consumer used a credit card to pay the original 

scammer, the asset recovery company usually will 

do nothing beyond disputing the charge with the 

credit card company, which the consumer can do 

themselves, for free. They often submit a complaint 

to an agency that does not charge anything 

to process a complaint – like us, the Consumer 

Financial Protection Bureau (CFPB). Moreover, they 

often do not even adequately follow through with 

the worthless services they offer; filing claims that 

are too old to be legally valid or without proper 

documentation to support the consumer’s claims.

Don’t be scammed twice!

Ways to protect yourself.

Here are some warning signs that can help you 

avoid becoming a victim of an asset recovery scam:

§ Upfront fees to recover money – Don’t pay

for any part of a service that has not been
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Protection Bureau Learn more at consumerfinance.gov

performed. You have the right to refuse service 

and verify the legitimacy of any organization.

§ Claims of insider information and connections – 

Submitting complaints to federal agencies, such 

as the CFPB or the Federal Trade Commission, 

or state attorneys general offices are free to the 

public and easy to use. Private companies do 

not have special access to these free consumer 

complaint resources.

§ Requests for secrecy – Never allow anyone 

to discourage you from seeking information, 

support, and advice from family members, 

friends, or trusted advisors before making a 

financial transaction.

How do I get help?

Alert your bank or credit card company immediately 

if you believe you have been a victim of fraud. Be 

sure to ask the bank to prohibit future withdrawals, 

debits or credit card payments made by or to the 

scammer. If your bank account information, debit 

card or credit card number was used without your 

permission, ask the bank to restore the funds taken

from your account. If asset recovery services you 

paid for with your credit card aren’t provided as

promised, you might be able to dispute the charges. 

If scammed, report it promptly to your local law 

enforcement office, and submit a complaint to the 

Federal Trade Commission at ftccomplaintassistant.

gov. If you have an issue with a financial product 

or service, you can submit a complaint to us at 

consumerfinance.gov/complaint. 

About the CFPB

The CFPB is a 21st century agency that 

helps consumer finance markets work by 

making rules more effective, by consistently 

and fairly enforcing those rules, and by 

empowering consumers to take more 

control over their economic lives.

Learn more at consumerfinance.gov

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