Vulnerable fraud victims are becoming victim to a “predatory” new type of ‘double dip’ scam that sees them targeted by criminals posing as recovery agents who promise to get them their money back. Over the past five years people in the UK have parted with nearly £400m and Action Fraud Claims Advice has learned that this year’s losses are well on course to be by far the worst yet with victims having lost almost as much in the first half of 2025 as in the whole of 2024.
But now recovery fraud is on the boom with gangsters collecting personal details and fees from the fraud victim, causing them to suffer a second loss. The National Fraud Intelligence Bureau (NFIB) told Action Fraud Claims Advice that a terrifying 14,867 reports of recovery fraud have been made since 2021 Last year, cases reached a new high of 3,676, according to Action Fraud, the UK’s national fraud reporting service with a staggering £90,799,723 reported to have been lost by victims.
But 2025 losses have already almost eclipsed that figure with Action Fraud warning that victims estimated a loss of £89,041,805 across 2,639 reports sent in by the end of June.
That means a total reported loss of £374,303,339 in just four and a half years.
Now lawyers from Action Fraud Claims Advice, a no-win no fee legal service that is unrelated to the official body Action Fraud, are offering advice to people who fall foul of a second scam.
Stuart Lythgoe fromthe firm said: “Recovery fraud is an especially predatory type of crime because it targets people who have already suffered the effects of fraud.
“Scammers may sell the victim’s details to a third party, or they may set up a second scam where they pretend to be able to retrieve the money they stole in the first place.
“The first thing we always say to a victim of this fraud is simple–don’t be ashamed and seek help immediately. As the statistics show, this is happening to thousands of people and reporting it could help both the victim and future potential victims.”
The Action Fraud Claims Advice team recommended the following steps to counter recovery fraud:
“Be wary of any unsolicited contact. If someone calls or emails, ask yourself, ‘have I contacted this company?’ A legitimate company will not mind if you ask whether you can call them back later.”
“Check out the company’s details online. Does the number or email address you were contacted from match? Get contact information from the company’s official website, then get in touch and ask them if they have a record of reaching out to you. If they don’t, you may have been approached by a scammer.”
“Check if a recovery agency is registered with the correct governing body. For example, we are authorised by the Financial Conduct Authority (FCA). Also check out online reviews and see if anyone has mentioned fraudulent contact.”
“If you’re making a payment, check the details given. Does the account name match the business’ name? You can ask your bank to do some checks on a potential payee.”
Victims of recovery fraud can report it to Action Fraud directly by visiting www.actionfraud.police.uk or by calling 0300 123 2040.
