What is a scam recovery scam, and how do I avoid it?
A recovery scam targets people who have already lost money to fraud, promising to get their money back for an upfront fee — and then stealing that fee too. Never pay anyone upfront to recover lost funds.
Last reviewed: 10 June 2026
Explanation
After suffering a financial scam, many victims search desperately for ways to get their money back. This desperation is exactly what scammers exploit with 'recovery scams' — also called 'reload fraud.' A recovery scammer will contact you by email, phone, social media, or even in search ads, claiming to be a law firm, investigative agency, or specialized fraud recovery service that has already identified the original scammer and can retrieve your funds — for a fee.
The fee structure varies. Some charge a flat 'registration fee' of a few hundred dollars; others take a percentage upfront; some charge repeated 'processing fees' or 'taxes' as the case progresses. In every case, after you pay, the recovery service stops responding, the website disappears, or new demands for money appear before the funds can be 'released.'
Legitimate law enforcement agencies and government bodies do not charge fees to investigate or assist with fraud cases. Real attorneys take contingency cases for large financial crimes, but reputable ones can be verified through state bar association databases. If anyone contacts you unsolicited about your fraud case — especially if you never published your contact details publicly — treat the approach as very suspicious.
Common targeting methods include purchasing victim lists from other scammers, scraping court records of civil suits, and monitoring fraud reporting forums. Protect yourself by being skeptical of any outreach you did not initiate, verifying credentials through official directories, and consulting free resources like your state AG or local legal aid organization.
Common red flags
- Company contacts you about a previous scam you did not publicly report
- Guarantees of full recovery — no legitimate recovery process can guarantee this
- Upfront fee required before any investigation or action is taken
- Company claims to already have your funds 'ready to release'
- Contact comes via WhatsApp, Telegram, or a generic free email address
- Website was created very recently and has no verifiable physical address
What to do now
- Do not pay any upfront fee to a recovery service
- Verify any company through official state or bar association directories
- Report the recovery scammer to the FTC at ReportFraud.ftc.gov
- Use free government resources: FTC, FBI IC3, and state attorney general
- Visit /recovery for legitimate next steps after being scammed
Frequently asked questions
Is there any legitimate private recovery service for scam victims?
Some licensed attorneys and asset-recovery firms do work fraud cases on contingency (no fee unless they win). Verify any firm through your state bar association, check for reviews, and never pay upfront fees. Be especially skeptical of firms that approach you rather than the other way around.
How do recovery scammers find their victims?
They buy lists from other scammers, scrape fraud reporting websites, monitor court records for fraud lawsuits, and use social media to identify people discussing being scammed. Reducing your online footprint about the original scam reduces your exposure to follow-on fraud.