Investors who’ve been victimized in an investment scam should be on guard against follow-up schemes designed to exploit them again, the Financial and Consumer Affairs Authority of Saskatchewan (FCAA) is warning.
“Recovery pitch” scams involve fraudsters claiming that they can recover funds lost to previous schemes. Sometimes these scammers claim to work in law enforcement, the regulator said.
The FCAA warned that casualties of past frauds may appear on a “victim list” that’s circulated among professional fraudsters, making them likely targets for future fraud attempts.
The alert sets out some of the “red flags” for investors, including unsolicited contact, pressure to act and demands for unusual payments, such as payments in gift cards, bitcoin or other digital currency.