Recovery Scams: Why “We’ll Get Your Money Back” Is Usually Another Scam

A recovery scam targets people who have already lost money to a scam, promising to get it back in exchange for an upfront fee, a “tax”, or access to your accounts. The people behind it may pose as lawyers, crypto tracing experts, “fund recovery” firms or even government agencies, and some are the same criminals who took the money in the first place. Legitimate government agencies never charge you to report a scam or to return money, and nobody can guarantee to recover funds sent to a scammer. If you’ve been contacted like this, don’t pay, and deal only with your bank, the platform you used, and law enforcement.

After losing money, wanting it back is completely natural, and recovery scammers count on that. This guide explains how the offers work, how to tell them from real help, and what you can genuinely do to try to recover money.

How a recovery scam works

Recovery scams usually start shortly after the first loss, sometimes within days.

1. Contact. You get a call, email, text or social media message, or you find an ad or a review site recommending a recovery service. Sometimes it’s a comment replying to a public post in which you described being scammed.
2. Credibility. They know details of your loss, such as the amount, the platform or the date. That can come from the original scammers, from lists of past victims, or from what you posted publicly.
3. The promise. They say they’ve located your money, traced the wallet, or have a court order or agency authority to return it. They may show official-looking documents, badges or case numbers.
4. The fee. Before releasing the funds, you need to pay a retainer, a processing fee, a tax, a “wallet release” charge, or insurance. Payment is usually in crypto, gift cards or wire transfer.
5. More fees. Once you pay, there’s another step: a legal fee, a compliance charge, a transfer fee. The money never arrives.

Some versions ask for remote access to your computer or phone “to trace the funds”, or for your bank or exchange login. That can lead to further losses and identity theft.

Who recovery scammers pretend to be

• Government agencies. Callers claiming to be from the FTC, the FBI, IC3, a state attorney general or a foreign regulator. The FBI has warned the public about scammers impersonating IC3 and other law enforcement to target fraud victims.
• Lawyers or law firms. Often with a professional-looking website, but no verifiable license, or using the name of a real firm. Timeshare owners see the same pattern from fake exit companies; see our guide to timeshare scams.
• Crypto tracing or “blockchain forensics” firms promising to hack back or reverse transactions.
• Ethical hackers offering to break into the scammer’s account and retrieve your money.
• The original platform. A fake “support team” from the investment site, saying your funds are available to withdraw once you pay a fee.
• Fellow victims. Someone in an online group who says a recovery service got their money back and recommends it.

Recovery scam warning signs

• They contacted you first, especially soon after your loss.
• They ask for money upfront, whatever it’s called.
• They promise or guarantee to recover your funds, or give a specific timeline.
• They want payment in crypto, gift cards or wire transfer.
• They claim to be a government agency and ask you to pay anything.
• They ask for remote access to your device, or for passwords or one-time codes.
• They claim they can “hack” the scammer or reverse a crypto transaction.
• They pressure you to act before a “deadline” or tell you to keep it confidential.
• Their documents look official but the agency, court or firm can’t confirm them when you contact it directly.

What real recovery looks like

It’s honest to say that money sent to scammers is often hard to recover, particularly crypto, gift cards and wire transfers. But there are legitimate routes, and none of them involves paying a stranger who contacted you.

1. Your bank or card issuer. Call using the number on your card or statement. Card payments can often be disputed, and banks can sometimes stop or recall transfers if contacted quickly.
2. The payment service or gift card company. Report the transaction as fraud and ask whether it can be reversed or frozen.
3. The crypto exchange. If you sent crypto from an exchange, report it. Exchanges can sometimes freeze funds that land in accounts they control, especially if law enforcement is involved. If someone got into your exchange login, our guide to a hacked Coinbase account covers securing it.
4. Law enforcement reports. Report to the FTC at ReportFraud.ftc.gov and the FBI at ic3.gov. These don’t guarantee recovery, but they’re how investigations and any official returns happen.
5. A lawyer you find yourself. For large losses, an attorney you locate independently can advise on options, such as a claim against a platform. Check their license with your state bar, and be cautious of any lawyer who contacts you first or guarantees results.

In the US, the FTC’s Telemarketing Sales Rule generally prohibits companies that sell recovery services by phone from collecting a fee until after they’ve actually delivered the recovered money. A caller asking for payment upfront is a red flag on its own.

What to do if you’ve been contacted

1. Don’t pay anything and don’t share codes, passwords or remote access.
2. Don’t confirm details about your loss to the caller.
3. Verify independently. If they claim to be an agency, look up its official contact details yourself and ask. If they claim to be a law firm, check the state bar’s directory.
4. Save evidence: phone numbers, emails, websites, documents they sent and any payment requests.
5. Report it to the FTC and IC3 as a new scam, referencing your original report if you have one.

What to do if you’ve already paid a recovery scammer

1. Stop paying. Whatever the next fee is, it won’t release your money.
2. Call your bank using an official number and report the payment as fraud. Contact the gift card issuer, payment app or exchange as well.
3. Secure your accounts if you gave remote access or passwords: change passwords from a different device, turn on two-factor authentication and ask your bank to watch the account. If you shared your Social Security number or ID, follow our guide on what to do if your identity is stolen.
4. Have your device checked if remote access software was installed. Remove it and run a security scan.
5. Report it at ReportFraud.ftc.gov and ic3.gov.

A worked example

This is an illustrative scenario, not a real client. A retired nurse loses savings to a fake crypto investment platform. She writes about it in a public online forum to warn others. A few days later, she gets an email from a “digital asset recovery” firm that says it has traced her funds to a specific wallet and can have them returned under a court order.

The email includes a case number and a letter with a seal. The firm needs a “release fee” paid in crypto, which it says will be refunded once the funds are returned.

1. She notices they contacted her, not the other way around, and that the fee has to be paid in crypto.
2. She looks up the court named in the letter and calls its clerk’s office. There is no such case.
3. She doesn’t reply, saves the email and letter, and reports the firm at ReportFraud.ftc.gov and ic3.gov, adding the details to her original report.
4. She calls her bank’s fraud team to ask whether any earlier transfers can be recalled, and edits her forum post to remove the amount and the platform’s name.

Protecting yourself after a scam

• Be careful what you share publicly about a loss. Warning others is generous, but details like the amount and the platform make you easier to target again.
• Treat any unexpected offer of help as suspect, especially one that arrives by phone, email or DM.
• Tell someone you trust about any recovery offer before acting on it.
• Keep your original reports and reference numbers in one place so you can add new information.

Recovery scams follow many kinds of loss, including romance scams and crypto scams. If a scam has also left fake posts, accusations or your personal details online, our personal reputation management service can help assess what’s visible.

Common mistakes to avoid

• Paying a “refundable” fee. It’s never refunded.
• Trusting official-looking documents without contacting the agency or court yourself.
• Choosing a recovery service from ads or reviews. Reviews and testimonials for these services can be fake.
• Giving remote access to “trace” the money.
• Believing someone can hack the scammer. This is not a real service, and paying for it is just another loss.

Frequently asked questions

Are all fund recovery services scams?

Not every firm is, but anyone who contacts you out of the blue, asks for an upfront fee, guarantees results or wants payment in crypto or gift cards should be treated as a scam. Your bank, the payment platform, law enforcement and a licensed lawyer you find yourself are the safer routes.

Does the FTC or FBI charge to recover scam money?

No. The FTC and FBI don’t charge to take a report, and they don’t call victims demanding fees to release recovered funds. Anyone who says they’re from a government agency and asks for payment is impersonating it.

Can crypto sent to a scammer be recovered?

It’s difficult. Crypto transfers can’t be reversed like card payments, although exchanges can sometimes freeze funds in accounts they control, and law enforcement has seized scam proceeds in some cases. Report to the exchange and to ic3.gov, and ignore anyone promising to hack it back for a fee.

How did the recovery scammer know about my loss?

They may be connected to the original scammers, have bought lists of past victims, or have read details you shared publicly. Knowing about your loss doesn’t make them legitimate.