SEC warns public against 'recovery scam' groups

The Securities and Exchange Commission (SEC) is warning the public about groups that claim to help victims of fraud, stating these groups are actually attempting to scam victims a second time.

These fraudulent operations are known as 'recovery' and 'advance-fee recovery' scams.

The SEC clarified that these unauthorized online accounts or entities lack the legal authority to offer recovery services.

Instead, they are used to further exploit individuals who have already fallen victim to scams.

Perpetrators of these secondary scams typically offer to recover previously lost funds in exchange for advance fees or personal information.

These fraudulent groups often falsely claim affiliation with government agencies or law enforcement and present fabricated testimonials or documents to appear legitimate.