Scams and Financial Hardships: Resources for Victims of Financial Crimes

What Can I Do About My Financial Losses?

Collect and save all documents and electronic transmissions directly related to your loss, including expenses incurred during your participation in the investigation or prosecution. If an arrest is made and a conviction is obtained, the judge may require the offender to pay restitution. This means the sentencing judge may order a convicted defendant to pay identified victims for certain losses suffered as a result of the crime. You may be asked to provide verification of your loss amount.

In addition, some losses may be tax-deductible. Tax laws are complicated, so consult a qualified tax advisor or the Internal Revenue Service to see if your losses qualify.

There may also be federal or state agencies that have remission or compensation funds depending on the license of an individual or business that committed the fraud.

Finally, if you believe the fraud perpetrator had assets, you may be able to recover losses through a civil lawsuit. Contact your state or local bar association for the names of attorneys who specialize in this area of law to determine if your case is appropriate for civil action.

What Can I Do to Address Financial and Credit Problems?

Losses may be so severe that you are unable to meet current financial obligations. If personal information was stolen, credit may be affected which can impact your immediate financial situation. In both of these situations, consider these options:

• Contact creditors and/or a nonprofit credit counseling service to help you to reduce or modify your payments or help you to limit access to your accounts.
• Submit a written statement to local and national credit reporting agencies about your victimization. Provide supporting documentation such as a copy of the criminal judgment.
• Be alert. Fraud artists may contact you claiming they can help recover your losses for a fee or may sell your name to others committing financial scams. If called, contact the case agent or your state's Consumer Protection Agency to verify the company’s legitimacy.