Five Wisconsin Banks Collaborate to Warn Consumers of “Recovery Scams”
AbbyBank, Citizens State Bank of Loyal, Forward Bank, Northwestern Bank, and Prevail Bank are warning consumers about a growing and particularly harmful fraud trend known as recovery scams, in which criminals target individuals who have already been victims of fraud and promise to help recover lost money, for a fee.
Federal authorities, including the FBI, have reported an increase in cases where scammers pose as law enforcement agencies, government officials, banks, attorneys, or professional recovery services. These impostors often contact victims days or weeks after an initial scam, claiming they can retrieve stolen funds if the victim provides personal information, pays upfront fees, or “verifies” account details through a link or payment.
“Once someone has been scammed, they’re often emotionally vulnerable and eager to fix the situation. Unfortunately, criminals know this and exploit it,” said Connie Zuleger, COO at Prevail Bank. “Recovery scams add insult to injury by targeting people when they’re already under stress.”
Recovery scams frequently refer to real events to appear legitimate. Criminals may claim they are following up on a fraud report, an online complaint, or a previous interaction with a bank or government agency. In some cases, scammers create fake websites or reporting portals that closely resemble legitimate resources, including well-known fraud reporting platforms, to capture additional personal and financial information.
“No legitimate bank, government agency, or law enforcement organization will charge a fee to recover stolen funds or ask for sensitive information through unsolicited contact,” warned Natalyn Jannene, Vice President of Marketing at AbbyBank. “Any request for payment or credentials tied to ‘recovering’ money should be treated as a red flag.”
Banks encourage consumers to understand that while financial institutions and law enforcement can assist with reporting fraud and investigating unauthorized activity, there is no guaranteed or instant way to recover funds, especially when payments were authorized or sent through irreversible methods. Criminals rely on false promises of fast results to pressure victims into acting quickly.
Consumers who have experienced fraud are advised to work directly with their bank using verified contact information, such as the phone number on the back of their debit or credit card. They should be cautious of unsolicited emails, calls, texts, or social media messages offering recovery services, even if those messages reference accurate details about the original scam.
Anyone who believes they may be the target of a recovery scam should stop communication immediately, avoid clicking links or sending money, and contact their financial institution. Changing passwords, monitoring accounts closely, and documenting all communications can help limit further harm.
