There has been a rise in fraudsters targeting those who have suffered a loss on investments, the Insolvency Service has warned.
The government agency said fake Insolvency Service letters claiming third-party companies had been authorised to help with the recovery of lost investments were being sent out.
The fake letters feature the agency's logo, numbers appearing to be linked to the service and fake signatures of staff members.
Scammers have also contacted people out of the blue who have lost money they have invested offering to help recover the money.
The companies named in the scam letters, which are registered on Companies House, are also being impersonated.
There have already been more than 300 complaints this year of the Insolvency Service and its staff being impersonated in this way.
The scammers use high-pressure tactics to obtain upfront charges or fees from the victims, under the pretence that they are refundable, which they claim to be for tax, third-party fees or other administrative costs.
Where victims are persuaded to transfer money, the fraudsters provide them with bank account details in the name of unconnected third parties and limited companies. The victims are told to lie to the banks if the transfer is queried.
Dave Magrath, director of investigation and enforcement services at the Insolvency Service, said: "Fraudsters maliciously tricking vulnerable people into believing they are helping them to recover money will not be tolerated by the Insolvency Service.
"In the last 12 months we have shut down 30 scammer telephone numbers and a further 24 email addresses and websites. We continue to work with the police and Action Fraud to share intelligence and pursue these offenders."
Magarth said it is vital for the public to report anything suspicious so action can be taken against the perpetrators.
The Insolvency Service sets out seven ways to protect yourself from impersonation fraud:
- All genuine Insolvency Service email addresses follow the format firstname.surname@insolvency.gov.uk. No official Insolvency Service email addresses or websites will use a domain ending in ‘.co.uk’, ‘.com’ or similar
- Do not respond to any calls, letters or emails from people offering to help in the recovery of a lost investment for an upfront refundable fee or charge
- Do not provide details of your bank account if asked to by people you do not trust
- Be extremely cautious when asked to transfer money to an individual’s personal account or an account in a different company’s name to the one you have been contacted by
- Be aware of scam letters
- Refer to the scams page which will be updated as the service receives new information.
tara.o'connor@ft.com
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