The Insolvency Service has issued a warning to investors and its customers regarding a recent increase in fraudulent activity, including recovery room scams, and fraudsters impersonating genuine Insolvency Service employees, in the form of emails, phone calls and letters.

Recovery room scams usually follow an investment scam, where victims have already lost money. Victims are cold called by fraudsters who pretend to be from a different company. High pressure tactics are then used to obtain upfront charges/fees, described as, for example, tax, solicitor fees and administrative fees. This can result in losses that can be greater than the initial investment loss.

To legitimise their contact, recovery room fraudsters will send fake letters with the Insolvency Service logo, spoof the Insolvency Service’s telephone numbers, provide fake Insolvency Service telephone numbers, use a fake email address like those officially used by the Insolvency Service, impersonate a legitimate employee of the Insolvency Service, and refer investors to social media accounts of Insolvency Service employees.

The Insolvency Service will never ask for an upfront fee to get your money back that you have lost in a previous investment. If contact appears to be from the Insolvency Service, or a company purporting to be acting on behalf of the Insolvency Service, asking for an upfront fee, this is a scam.

Separately, fraudsters are impersonating legitimate employees of the Insolvency Service by contacting individuals using fake email addresses and letters.

This activity is in no way affiliated with the Insolvency Service and recipients are being advised to exercise caution and familiarise themselves with the official telephone number and domains used by the agency.

See: Warning issued by the Insolvency Service on scams – GOV.UK (www.gov.uk)