Recovery Scams: How to Spot a Second Scam
6 min read
Being defrauded once puts you on a list, and that list is sold. A large share of everyone who contacts you offering to recover your money is running the follow-up scheme. These are the signals that separate the two.
Red flag: a guarantee
Nobody can guarantee crypto recovery. Outcomes depend on where funds went, whether they touched a regulated service, and decisions made by third parties nobody controls. A guarantee is not confidence — it is the product being sold.
Red flag: they contacted you first
Unsolicited approaches by DM, comment reply, WhatsApp, Telegram, or email are the primary distribution channel for recovery scams. Especially treat as fraudulent anyone who replies to a public post about your loss.
Red flag: payment in crypto, upfront
A demand for an upfront fee in Bitcoin or USDT to a personal wallet is definitive. Legitimate firms invoice properly and can be paid through traceable channels. Also treat as fraud any request for a 'tax', 'unlock fee', 'gas payment', or 'insurance bond' before funds are released.
Red flag: hacking or reversal claims
Confirmed blockchain transactions cannot be reversed. Nobody can hack the scammer's wallet back for you, and any firm offering to do so is describing either a crime or a lie.
- 'We can reverse the blockchain transaction' — impossible
- 'Our hacker can access their wallet' — a lie, or a crime
- 'We have a government contract to seize funds' — no private firm does
- 'Pay the release fee and the funds transfer today' — the scam itself
Red flag: no verifiable entity
Check for a registered company number you can verify on a government register, a real physical address, a written engagement agreement, and a website that predates your loss. If the only contact is a Telegram handle, walk away.
Four questions that end the conversation
Ask directly and watch what happens.
- What is your registered company number and in which jurisdiction?
- What specific outcome are you actually committing to in writing?
- What happens if no funds are recovered — what do I have then?
- Can you send an engagement agreement I can read before paying anything?
If you have already paid one
Report it to IC3 and the FTC, notify your bank or exchange, and preserve every communication. Do not send further payments in an attempt to release earlier ones — that sequence has no end point.
Need this done properly?
If your loss is documented and substantial, submit the details for a free written assessment. We'll tell you honestly what is workable.
Start Free Case Review