Attorney general warns of scam targeting financial fraud victims

Phone calls or emails claim to be from an ‘asset recovery company’

FRANKFORT, Ky. (Jan. 19, 2016) – Victims of financial fraud are being targeted by scammers who claim they can help recover lost investments and provide legal assistance, said Attorney General Andy Beshear.

Kentuckians who may have already lost money and perhaps even their life’s savings to fraudulent investment schemes are being targeted through email and phone calls. The call or email claims to be from an “asset recovery company” that promises to help victims recover their losses for an upfront fee.

“This scam is particularly alarming because it seems believable,” said Beshear. “Being victimized once can be life changing, particularly for seniors, and this scheme victimizes people for a second time. We must get out the word to prevent that from happening.”

Beshear warned consumers last week of a scam involving phone calls to Kentuckians claiming they had won the Publishers Clearing House Sweepstakes. That sweepstakes does not contact individuals by phone.

Beshear encourages potential victims of the fraudulent investment scheme to protect themselves by following these tips from the North American Securities Administration Association:

• Know that most financial fraud victims rarely recover lost funds. If money is recovered, it is usually only pennies on the dollar.
• Before payment, read the fine print of any contract for service. Ask for specifics on what services they are providing for the fee.
• Consider whether you can risk losing more money if the company does not recoup anything on your behalf.
• If the company mentions providing legal services, such as filing a class action lawsuit, ask for the names and license numbers of the attorneys and verify their licensure with the appropriate state bar association.

If you have a complaint against an investment company or professional, contact DFI’s Securities Division at 800-223-2579 or visit http://kfi.ky.gov/complaint/Pages/securities.aspx.

If you have a complaint about fraud or questionable services, contact the Attorney General’s Office of Consumer Protection at 888-432-9257 or visit www.ag.ky.gov.