What is a recovery scam?
A recovery scam targets people who have already lost money to fraud and promises to recover their funds for an upfront fee — but takes more money and delivers nothing.
Last reviewed: 10 June 2026
Explanation
Recovery scams are predatory by design. They specifically target fraud victims, who are already in a vulnerable, distressed state and are often willing to try almost anything to get their money back. Fraudsters monitor public databases, victim forums, social media complaints, and even their own previous victim lists to identify people who have been scammed.
The approach can be remarkably sophisticated. The 'recovery company' may have a professional website, fake testimonials, and staff who claim to be former law enforcement or blockchain specialists. They represent that they have special tools or legal avenues to recover crypto or wire transfers. They charge an initial consultation fee, then a 'processing' fee, then a 'release' fee — the demands continue as long as the victim pays.
Some recovery scammers are the same criminal group who ran the original scam, or they have bought victim data from those groups. This practice of repeatedly victimising the same person is sometimes called 'reloading'.
Legitimate legal and financial recovery services do exist but they do not cold-contact victims, do not guarantee recovery, and do not ask for upfront fees before doing any verifiable work. If you were scammed and want help, start with your national consumer protection agency or a non-profit victim support organisation.
Common red flags
- You are contacted out of the blue by a 'recovery firm' after reporting a scam
- They ask for upfront payment before any recovery work begins
- They guarantee full or specific recovery amounts
- They claim to have special government, FBI, or blockchain 'clearance' to recover funds
- Each payment leads to another required fee before 'release' of your funds
- They found you via a social media post or forum comment about being scammed
What to do now
- Stop all payments immediately
- Report the recovery scam to your national fraud authority as a separate crime
- Contact your bank about any transfers made to the recovery scammer
- Seek free help from legitimate sources: national consumer agencies, victim support charities, or financial ombudsmen
- Be sceptical of any company that contacts you unsolicited about recovering money
Frequently asked questions
Are there any legitimate fund recovery services?
Some regulated legal firms and specialist financial investigators do assist with fraud recovery, particularly for large-sum cases. Verify they are licensed, do not cold-contact victims, and do not demand large upfront fees. Start with your national financial regulator's register of authorised firms.
How do recovery scammers find me?
They monitor fraud reporting databases, social media complaints tagging companies or institutions, victim forums, and news articles. Some purchase victim lists directly from the original scammers. Contact from anyone who already knows you were scammed should raise immediate suspicion.