In short
- People who have lost money are often targeted again by fake "recovery" agents, lawyers, hackers or officials.
- Upfront fees, promises of certain recovery and requests for your recovery phrase are the giveaways.
- Legitimate routes are your bank, the police, regulators and a lawyer you find yourself.
The second scam
After a loss, people are desperate to get their money back. Fraudsters know this, and they know who has been defrauded: victim lists are shared and sold between criminal groups, and people often post about their losses publicly. Agencies including the FBI and the FTC have warned repeatedly that recovery scams follow other frauds. Sometimes the "recovery agent" works for the very same group that took the money in the first place.
The faces of a recovery scam
The "recovery company"
A firm with a professional website, glowing reviews and talk of "blockchain forensics" contacts you, or appears in adverts and search results when you look for help. They say they have traced your funds and can give them back once you pay a fee or a percentage in advance.
The lawyer or legal firm
Someone claiming to be a lawyer says they represent a group of victims of the same scheme and need a payment to include you in a court case or a settlement. They may use the name of a real law firm.
The "ethical hacker"
Comments under social media posts and articles about scams are full of accounts recommending a hacker who "got my money back in 48 hours". The hacker asks for a fee and sometimes for access to your accounts or your recovery phrase.
The fake official
A caller or e-mail claims to be from the police, a regulator, an international agency or a court. They say your funds have been found and can be released once you pay a tax, a transfer fee or a compliance charge, or once you "verify" your wallet.
What all of them have in common
- They contacted you first, or you found them through an advert or a recommendation in comments.
- They know details of your loss, which makes them seem informed.
- They are confident that the money can be recovered.
- They want a payment, your recovery phrase or remote access to your device before anything happens.
Even honest specialists who trace transfers on a blockchain cannot force a fraudster to give funds back. Recovery, when it happens at all, normally comes through law enforcement and courts, sometimes when an exchange freezes funds at the request of the police. Nobody can honestly promise it.
Legitimate routes
- Your bank or card provider, if you paid from a bank account or card. Some payments can be stopped or recalled, and in some countries there are reimbursement rules for certain kinds of fraud.
- The police, through the official channels listed on our reporting page.
- The financial regulator, if a firm claimed to be authorised.
- A lawyer you find yourself, through your national bar association or law society, not through an advert or a message. Ask how they will be paid and what they can realistically achieve before you agree to anything.
Official agencies do not charge victims to investigate or to give funds back. If someone claiming to be from the police asks you for money, it is a scam.
Questions to ask anyone offering help
If you are unsure whether an offer is genuine, these questions usually settle it:
- How did you get my details? A legitimate body can explain this clearly.
- Can I call you back through the main number of your organisation, listed on its official website?
- Will I have to pay anything before I receive my money? If yes, stop.
- Will you need my recovery phrase, passwords or remote access to my device? If yes, stop.
- Can I find your firm in an official register, such as a regulator's or a law society's?
A genuine professional will welcome these questions. A fraudster will become vague, pushy or offended.
Protecting yourself while you wait
The weeks after a loss are when people are most vulnerable. Tell family and friends that you may be targeted, so that they can be a second pair of eyes. Do not post details of your loss publicly. Ignore anyone who contacts you about it, unless you can confirm through an official number that they are from your bank or the police. Our guide on pressure tactics explains why the emotional pull is so strong.
Red flags of a recovery scam
| Red flag | What it usually means |
|---|---|
| Someone contacts you about your loss without being asked | Your details are probably on a victim list. |
| An upfront fee, "tax" or deposit is required | Real agencies do not charge victims to recover funds. |
| They promise to get the money back with certainty | Nobody can honestly promise this. |
| Comments recommend a hacker who "got my money back" | Coordinated fake recommendations. |
| They ask for your recovery phrase or remote access | They want to take whatever is left. |
| They claim to be police or a regulator but use a private e-mail or messaging app | Officials use official channels. |
If it already happened
If you have already paid a recovery service, stop paying now; further fees will not bring results. Tell your bank about the payment and add the recovery scam to your police report, including the names, websites and numbers used. If you shared a recovery phrase or gave remote access, act as if your remaining funds and accounts are at risk and follow our first-hour checklist.
Printable checklist
What to do in the first hour after a scam — Work down the list in order. It is not your fault, and acting quickly helps.
Sources
This guide is general safety education. It is not financial, legal or security advice for your individual situation, and it does not recommend acquiring, holding or disposing of any crypto-asset. If you think you are dealing with fraud, contact your bank and the police.