The Insolvency Service is warning the public to be on high alert as criminals are impersonating its employees to defraud unsuspecting victims. Fraudsters are sending fake letters claiming the Insolvency Service has authorised third-party companies to help individuals recover lost investment funds. These companies, however, are being impersonated and have no affiliation with the agency.
The scammers use official-looking documents, including forged Insolvency Service letterheads and fake signatures of staff members, to appear legitimate. They also make unsolicited phone calls and send emails to victims, often requesting upfront fees for their services. These fees are falsely described as necessary for taxes, administrative costs, or third-party expenses. Once victims transfer money, the fraudsters disappear, leaving victims without any recovered funds.
Dave Magrath, Director of Investigation and Enforcement Services at the Insolvency Service, stated, “Fraudsters maliciously tricking vulnerable people into believing they are helping them recover money will not be tolerated by the Insolvency Service. We are working closely with the police and Action Fraud to bring these criminals to justice.
The Insolvency Service has shut down 30 scam phone numbers and 24 fake email addresses and websites over the past year. However, the agency is urging the public to remain vigilant and report any suspicious activities.
Victims are often asked to transfer around 10% of their lost investment upfront and are pressured to send more money. To combat this, the Insolvency Service has launched a scams page on GOV.UK to help the public identify warning signs and access support.
The agency reminds the public to verify the authenticity of any communication by ensuring email addresses end in @insolvency.gov.uk and to never respond to unsolicited offers to recover lost investments in exchange for fees.
If you suspect you have been targeted by this scam or have any concerns, please report the incident to Action Fraud or the Insolvency Service’s official contact lines.
