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There is usually no explanation on how money will be recovered or, if an explanation is given, it is likely to be false or implausible. For example, falsely claiming to be the FCA or working with the Government, police or other regulator to recover any monies which have been lost. Generally, recovery rooms insist on being paid a fee or transaction charge before carrying out any services to recover any consumers losses.
Recovery room scams usually follow on from a boiler room or other type of investment scam where a consumer has lost money. The perpetrators of the original scam may operate the recovery room and contact the victim again pretending to be from a different firm or sell on their details to other recovery rooms. The scam tends to involve cold calling with high-pressure tactics and upfront charges described as a tax, solicitor or administrative fees, which can result in losses that can be greater than the initial loss.
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