THE National Fraud Intelligence Bureau is warning people of the dangers of ‘recovery room’ fraudsters targeting former victims of timeshare fraud.

Recovery room fraud refers to a scam in which fraudsters contact the victims of previous frauds, often by cold calling, and claim to be able to recover previously lost funds.

In July 2014, the Financial Services Authority estimated 30 per cent of people who had lost money through investment fraud would also fall victim to a recovery room fraud.

When recovery room fraudsters target victims of timeshare frauds they usually claim to be a legal professional or a representative of a government agency, normally within the country where the original timeshare property was based, in order to legitimise the scam.

The fraudsters know personal details about the victim and their previous investment which gives them credibility.

They claim that the advanced fees requested are for “local taxes” or “litigation costs” incurred during the recovery of the funds.

It is suspected the people behind recovery room frauds are often the same people involved in the original scams even though these crimes may have occurred years earlier.

Initially, a small fee, typically in the region of £200-£400, is requested by the fraudsters which they often claim is refundable on a ‘no-win no-fee’ basis.

The fraudsters rely on the victims seeing this as a nominal fee compared to the amounts lost, which often run into tens of thousands of pounds and therefore worth paying if it facilitates the return of their money.

Once paid, various excuses are made by the fraudsters to explain delays in the recovery of the funds. Subsequently, further larger amounts are then requested by the fraudsters.

Needless to say, no refunds ever materialise and no money is ever recovered. If you think you have been a victim call 0300 123 2040 or go to www.actionfraud.police.uk