They cold call people who have lost money and pretend to offer help to retrieve their cash.

Fraudsters impersonate genuine Insolvency Service employees, through emails, phone calls and letters.

They use high-pressure tactics to trick victims into handing over upfront charges/fees, described as, for example, tax, solicitor fees and administrative fees.

The scam can result in losses that can be greater than the initial investment loss, the Insolvency Service said.

To legitimise their contact, recovery room fraudsters send fake letters with the Insolvency Service logo, spoof the Insolvency Service’s telephone numbers, provide fake Insolvency Service telephone numbers, use a fake email address like those officially used by the Insolvency Service, impersonate a legitimate employee of the Insolvency Service, and refer investors to social media accounts of Insolvency Service employees.

Separately, fraudsters are impersonating legitimate employees of the Insolvency Service by contacting individuals using fake email addresses and letters.

The Insolvency Service said: “This activity is in no way affiliated with the Insolvency Service and recipients are being advised to exercise caution and familiarise themselves with the official telephone number and domains used by the agency.”

Email addresses from the agency, including its staff, will always follow the Government’s official ‘@insolvency.gov.uk’ domain. No official Insolvency Service email addresses or websites will use a domain ending in ‘.co.uk’, ‘.com’ or similar.