Guide · Critical victim warning · Updated June 2026
Recovery Scams: The Second Scam After the First
If you recently lost money to a scam, you are now on a list that scammers buy. Every "asset-recovery expert" who contacts you out of the blue is running a second scam against the same victims.
The hard rule
Nobody legitimate cold-DMs you, asks for an upfront fee, or promises a recovery percentage. Real recovery channels are your bank, the receiving exchange, and law enforcement — and none of them message you first.
8 red flags of a recovery scammer
- ✕Contacted you out of nowhere days or weeks after your loss
- ✕Knows specifics about your case you never posted publicly (because they bought the victim list)
- ✕Claims to be a 'blockchain forensics expert,' 'ethical hacker,' or 'asset-recovery attorney'
- ✕Asks for an upfront fee, retainer, 'gas fee,' or 'tax release' before recovery
- ✕Wants payment in crypto, gift cards, or wire — the same methods that took the original loss
- ✕Shows fake court documents, fake government letterheads, or fake exchange screenshots
- ✕Pressures you with deadlines ('your funds will be permanently lost in 48 hours')
- ✕Refuses video verification or a real licensed law firm address you can independently check
What actually works
- 1. Notify the receiving exchange immediately. Many exchanges can freeze a deposit if you reach them within hours.
- 2. Call your bank or card issuer. Wire and card transactions can sometimes be reversed inside 24-48 hours.
- 3. File with the right cybercrime unit. IC3.gov (US), Report Fraud (UK), CAFC (Canada), Cybercrime.gov.au (Australia), or your country's equivalent.
- 4. Submit the entity to GACS. Wallet, website, phone, or handle — gets it into search results before the next victim arrives.
- 5. Hire only a licensed law firm with a verifiable address. And only after you've checked their bar registration on the official regulator site, not the link they sent you.
Next steps
Thinking about hiring help? Read how to vet a legitimate financial recovery service before you pay anyone — most "fraud recovery experts" who DM victims are the second scam.
Trusted sources
United States
- FTC — Scammers promise to recover your lost money for a fee
- FBI IC3 — Internet Crime Complaint Center
- FBI — Recovery scams overview
Canada
- CAFC — Recovery pitch scam
- Canadian Anti-Fraud Centre — Report fraud (1-888-495-8501)
- RCMP — Scams & fraud
Europe & UK
FAQ
What is a recovery scam?
A recovery scam targets people who have already lost money to fraud. The scammer poses as a recovery expert, hacker, lawyer, or government agent, promises to claw the funds back, and demands an upfront fee. They never recover anything — the fee is the second loss.
Can stolen crypto really be recovered?
Sometimes, but only through legitimate channels: the receiving exchange (if you act fast and they freeze the deposit), your bank (for wire reversals inside 24-48 hours), and law enforcement asset seizures (rare and slow). Nobody who DMs you out of the blue can recover funds. If they could, they wouldn't need your fee.
Who should I actually contact after a scam?
File at IC3.gov (US), Report Fraud (UK), CAFC (Canada), or your country's cybercrime unit. Notify the receiving exchange directly through their official support form. Call your bank or card issuer. Submit the wallet/website/handle to GACS so future victims see the warning when they search. No upfront fees, no DMs.
How do recovery scammers find me so fast?
Victim lists are bought and sold. If you posted about your loss in a public forum, comment thread, Reddit, or scam-report site, your handle is on a list within days. That's why the 'recovery expert' contacting you seems to know your case — they read the same public post you did.
Learn to spot these yourself — free fraud awareness training
Work through the free GACS study books and practice drills to recognise these tactics before they cost you money — no payment needed, and a verifiable certificate if you sit the exam.
Start the free courseSources & references
External sites referenced on this page, and the sections they relate to.
- antifraudcentre-centreantifraude.caReferenced in: Trusted sources
- consumer.ftc.govReferenced in: Trusted sources
- eccnet.euReferenced in: Trusted sources
- europol.europa.euReferenced in: Trusted sources
- fca.org.ukReferenced in: Trusted sources
- ic3.govReferenced in: Trusted sources
- reportfraud.police.ukReferenced in: Trusted sources
Free dispute letter & evidence checklist
Copy the letter, fill in the brackets, and send it to your bank or card issuer. Not legal advice.
- Screenshots of every charge (statement lines with dates and amounts)
- Cancellation confirmation or proof you tried to cancel
- All emails / chats with the merchant (dated)
- The ad, website page or message that misled you
- Report receipts: FTC (reportfraud.ftc.gov) and, for losses, FBI IC3 (ic3.gov)
- PayPal: open the dispute in the Resolution Center within 180 days of payment
Show the dispute letter template
Subject: Dispute of unauthorized / unwanted charge To: [Bank or card issuer] Dispute Department Cardholder: [Full name] Card / account ending: [last 4 digits] I am disputing the following charge(s): - Merchant: [name] - Date(s): [date] - Amount(s): [amount] Reason: [I did not authorize this charge / I cancelled before renewal / I was deceived about what I was buying]. I contacted the merchant on [date] by [email/chat] and [they refused / did not respond]. Copies are attached. Please reverse the charge(s), issue a provisional credit while you investigate, and block future charges from this merchant. Attached evidence: receipts, screenshots, cancellation confirmation, merchant correspondence. Signed: [Name] Date: [date]
Stay ahead of the next scam
Set up your free alerts, or check something suspicious right now.
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- Financial recovery services — what's real
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Authoritative sources
Independent primary sources used to check and corroborate the guidance on this page.
FBI Internet Crime Complaint Center (IC3)Official US channel for reporting internet-enabled fraud and cybercrime.
US Federal Trade Commission — ReportFraudConsumer fraud reporting and published enforcement data.
UK Report FraudUK national reporting centre for fraud and cybercrime.
Canadian Anti-Fraud CentreCanada's central repository for fraud reports and scam alerts.