Recovery Scams in Australia: ASIC and AFCA Impersonation
Australian fraud victims are re-targeted by fake asset recovery firms that impersonate ASIC, the AFCA, or law enforcement to collect upfront fees. ScamWatch data shows Australians lose significant sums to this secondary layer of fraud.
Part of: Recovery Scams
Last reviewed: 1 June 2026
Australia's active reporting culture means a large number of fraud victims are known to scammers through dark web data purchases or re-use of contact lists. Recovery scam operators — often connected to the original fraud — contact victims shortly after their loss with promises of fund recovery.
The impersonation of ASIC and the Australian Financial Complaints Authority (AFCA) is particularly effective because these are real, active bodies that Australians may have recently reported to or heard of in the news.
How this scam works on Australia
A victim who has reported an investment scam to ScamWatch or ASIC receives a call from someone claiming to represent ASIC's 'asset recovery division' or an independent law firm working with AFCA. They say the perpetrators have been identified and funds are being recovered, but the victim must pay a legal processing fee or government lodgement cost to receive their share.
Payment is requested via bank transfer, sometimes using a reference number to mimic a government transaction. After payment, follow-up communications become sporadic, then stop. A second caller may then offer to recover the recovery fee for another upfront payment.
Some operations use detailed knowledge of the original fraud — which they obtained from the same network that ran the first scam — to sound credible and authoritative.
Common red flags
- Contacted out of nowhere by someone claiming to work for ASIC or AFCA on your previous fraud case
- Request for an upfront fee to process recovery of previously lost funds
- Caller knows details of your original fraud that you have not publicised — sourced from same network
- No verifiable ASIC or AFCA identification that matches information on official websites
- Instruction to keep the recovery process confidential from your bank
- Fees escalate with each supposed stage of the recovery
How to protect yourself
- Understand that ASIC and AFCA do not contact fraud victims to offer recovery services for a fee
- Verify any government contact by calling ASIC at 1300 300 630 or AFCA at 1800 931 678 independently
- Never pay upfront fees to recover money — any legitimate legal route requires formal engagement, not anonymous phone payments
- Report recovery scam contacts to ScamWatch at scamwatch.gov.au immediately
- Consult a regulated solicitor if you want to explore civil recovery options
- Block and report numbers used by recovery scammers to prevent follow-up contact
How to report it
- Report to ScamWatch at scamwatch.gov.au
- Report ASIC impersonation directly to ASIC at asic.gov.au/about-asic/contact-us
- Contact your local police or the Australian Federal Police for large-scale fraud
Frequently asked questions
Is there a legitimate way to recover money lost to investment fraud in Australia?
Potential routes include reporting to ASIC for regulatory investigation, using AFCA's free dispute resolution if a licensed financial product was involved, and engaging a licensed insolvency practitioner or solicitor. None of these involve paying upfront fees to an individual or private recovery firm that contacts you unsolicited.