Recovery Scams in the United States
How fake asset-recovery firms and impersonators targeting US fraud victims extract additional fees — and the FTC reporting process.
Part of: Recovery Scams
Last reviewed: 1 June 2026
After losing money to a scam, US victims are frequently targeted by a second wave of fraud: fake recovery firms that promise to retrieve lost funds for an upfront fee. These operations are often aware of the original fraud because they purchase victim lists from scam syndicates or monitor public fraud reports and social media discussions.
The FTC actively warns about recovery scams, which are sometimes run by the same criminal organisations that conducted the original fraud. In the US context, these firms often impersonate the FTC, FBI, or state attorneys general to add official credibility.
How this scam works on United States
A recovery scam contact may arrive by phone, email, or social media from someone claiming to work for a 'consumer protection law firm,' a 'blockchain forensics company,' or a government taskforce recovering crypto for victims. They demonstrate knowledge of the original scam to appear credible and quote a recovery success rate.
The pitch involves a non-refundable upfront fee — described as a legal retainer, government processing fee, or crypto-network transaction fee — to initiate recovery proceedings. After payment, more fees are invented. US-specific variants impersonate the FTC's Consumer Sentinel database, claiming the victim's case was identified and a fee is required to receive the recovery.
Common red flags
- Unsolicited contact from a recovery firm that knows details of your original fraud
- Caller claiming to be the FTC, FBI, or state AG offering recovery for an upfront fee
- Recovery firm with no verifiable state bar registration or FTC registration as a debt collector
- Promise to recover a specific dollar amount in exchange for a small processing fee
- Request for payment via wire transfer, crypto, or gift card to start recovery
How to protect yourself
- Know that the real FTC and FBI never charge fees to recover lost funds
- Verify any recovery law firm through your state bar association before paying any fee
- Search the recovery firm name plus 'scam' or 'complaint' before engaging
- Contact your original fraud report case worker (IC3 or FTC case number) to verify any contact claiming to represent them
- Report recovery scam approaches to the FTC immediately even if you did not pay
How to report it
- Report to the FTC at reportfraud.ftc.gov — both the original fraud and the recovery scam attempt
- File an IC3 report at ic3.gov
- Report to your state attorney general's consumer protection office
Frequently asked questions
Can I get a legitimate lawyer to help recover fraud losses in the US?
Yes — licensed US attorneys do take civil fraud cases, typically on contingency or with transparent retainer agreements. Verify any attorney's bar number through your state bar association's public database. A legitimate attorney will not ask you to pay fees via gift card or crypto, and will provide a written engagement letter.