Recovery Fraud

Recovery fraud (also called recovery scam or reload fraud) preys on people who have already been victimised by fraud. The criminal contacts a prior victim — often sourced from victim lists shared or sold between fraud networks — and claims to be a law firm, government agency, blockchain recovery specialist, or consumer rights organisation able to recover the money that was lost. The victim, desperate to recoup their losses, agrees to pay upfront fees, 'taxes', 'legal costs', or 'processing charges' before the promised funds are released.

No recovery ever occurs. The fees are simply additional theft, and the process repeats: new demands for further charges are invented — customs fees, release fees, transaction taxes — until the victim has no more money to send or finally recognises the pattern. In some cases, the recovery fraudster is the same criminal organisation that ran the original scam, deliberately targeting their own prior victims knowing they are emotionally vulnerable and have already demonstrated a willingness to pay.

Recovery fraud is particularly devastating because it extends the duration and total financial damage of the original victimisation. Genuine victim assistance services — run by regulators, police forces, or recognised charities — do not charge upfront fees for their help. Anyone offering guaranteed fund recovery in exchange for payment should be treated as a fraud.