The Securities and Exchange Commission (SEC) is warning the public against groups claiming to provide assistance to victims of fraud.
In its latest advisory, the SEC urged the public to exercise the highest degree of caution against certain individuals or groups operating Facebook pages, online communities, and other social media platforms that appear to offer help to scam victims.
The SEC said these platforms are, in fact, designed to defraud them a second time.
Such schemes are referred to as ‘recovery’ and ‘advance-fee recovery’ scam by the SEC.
‘These online accounts or entities are not authorized by the commission and have no legal authority to provide recovery services,’ the SEC said.
‘On the contrary, they are being utilized as instruments to exploit already vulnerable victims,’ it said.
The SEC said that schemes employed by perpetrators commonly include offering recovery of funds previously lost to scams in exchange for advance fees or personal information.
Such groups also misrepresent affiliation with government agencies or law enforcement authorities as well as fabricate testimonials, documents or credentials to create a false appearance of legitimacy.
The SEC said those involved in these scams likewise employ high-pressure tactics to induce victims into making immediate payments or disclosing sensitive personal or financial information.
‘The commission warns the public not to transact with, remit any sum to or disclose personal information to such individuals or groups. Victims of scams are strongly urged to lodge their complaints directly with the proper authorities for appropriate action,’ it said.