Established by a former federal prosecutor · 20+ years prosecutorial experience · $12.5B lost to fraud in 2024 (FTC)
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● HIGH RISK

Recovery & Refund Scam

The cruelest one: it targets people who have already been scammed. A "recovery agent," lawyer, or official promises to claw your lost money back for an upfront fee — and simply takes more. Legitimate recovery is never sold by cold-callers demanding payment first. Being a victim once makes you a marked target, not a likely refund.

Losses: Victims are often re-defrauded for thousands more (FBI IC3)
Targets: Prior scam victims, especially seniors and crypto-investment victims
Updated: 2026-06-11
Also known as: Refund Recovery Scam · Fund Recovery Scam · Crypto Recovery Scam · Reload Scam · Double-Dip Scam
01

How It Works

This is one of the cruelest scams: it deliberately targets people who have already lost money. Scammers buy or compile "sucker lists" of known victims and approach them offering to recover the stolen funds. **Common scenarios:** 1. **Fake recovery company**: "We specialize in recovering money lost to crypto fraud. We've already located your funds — we just need an upfront fee to release them." 2. **Impersonating authorities**: Posing as the FTC, FBI, a court, or a law firm "assigned to your case," requesting fees, taxes, or "bonds" before releasing recovered money. 3. **The original scammer returns**: Sometimes the very people who scammed you come back under a new identity offering to "help." 4. **Crypto tracing scam**: Fake blockchain-tracing "experts" on social media promise to track and reclaim stolen crypto for a deposit. **The tell:** Real law enforcement and legitimate firms never demand upfront fees, taxes, or crypto to return your money. Anyone guaranteeing recovery for a fee is running a second scam.
How Scammers Make Contact
Phone callsEmailsSocial media DMsOnline adsText messages
02

Warning Signs & Red Flags

  • Unsolicited contact about money you already lost
  • Any upfront fee, "tax," "bond," or deposit required before recovery
  • Guarantees that your funds can be recovered (no one can guarantee this)
  • Claims to be from the FTC, FBI, or a court "assigned to your case"
  • Requests for more crypto, gift cards, or wire transfers
  • Pressure to act fast before the "recovery window" closes
03

Real-World Example

"After I lost $18,000 to a fake crypto platform, a man messaged me on Telegram saying he was a blockchain investigator who could trace and recover it. He showed me a 'dashboard' with my funds located. He just needed a $2,500 'release fee.' I paid it. Then he needed a 'tax.' That's when I realized I was being scammed a second time by the same kind of people."

— FBI IC3 Cryptocurrency Recovery Advisory
04

How to Protect Yourself

  • Treat any unsolicited recovery offer as a scam by default
  • Government agencies never charge a fee to help recover funds
  • No legitimate service can guarantee getting scammed money back
  • Never pay upfront to recover a previous loss
  • Verify any "agency" by calling its official number from a .gov site
  • Be especially skeptical of crypto-recovery offers on social media
05

What To Do If You're a Victim

  1. 1Do not pay any fee — stop contact immediately
  2. 2Report the recovery attempt to the FTC at ReportFraud.ftc.gov
  3. 3Report to the FBI Internet Crime Complaint Center at ic3.gov
  4. 4If you paid, contact your bank or payment provider right away
  5. 5Warn others — recovery scammers share victim lists
  6. 6Keep records of all communications in case of investigation
Report This Scam
FTC Report Fraud FBI IC3 Identity Theft
?

Frequently Asked Questions

What is Recovery & Refund Scam?

The cruelest one: it targets people who have already been scammed. A "recovery agent," lawyer, or official promises to claw your lost money back for an upfront fee — and simply takes more. Legitimate recovery is never sold by cold-callers demanding payment first. Being a victim once makes you a marked target, not a likely refund.

What are the warning signs of Recovery & Refund Scam?

Unsolicited contact about money you already lost. Any upfront fee, "tax," "bond," or deposit required before recovery. Guarantees that your funds can be recovered (no one can guarantee this). Claims to be from the FTC, FBI, or a court "assigned to your case". Requests for more crypto, gift cards, or wire transfers.

How do I protect myself from Recovery & Refund Scam?

Treat any unsolicited recovery offer as a scam by default. Government agencies never charge a fee to help recover funds. No legitimate service can guarantee getting scammed money back. Never pay upfront to recover a previous loss.

What should I do if I'm a victim of Recovery & Refund Scam?

Do not pay any fee — stop contact immediately. Report the recovery attempt to the FTC at ReportFraud.ftc.gov. Report to the FBI Internet Crime Complaint Center at ic3.gov. If you paid, contact your bank or payment provider right away.

How serious is this threat?

We rate this high risk. Reported losses: Victims are often re-defrauded for thousands more (FBI IC3). Most exposed: Prior scam victims, especially seniors and crypto-investment victims.

Can I get my money back?

Recovery depends on how you paid. Credit card payments may be reversed through chargebacks, while wire transfers and cryptocurrency are rarely recoverable. Report immediately to your bank and file complaints with the FTC at reportfraud.ftc.gov and the FBI IC3 at ic3.gov.

How do I report Recovery & Refund Scam?

Report to the FTC at reportfraud.ftc.gov. For internet crimes, file with the FBI IC3 at ic3.gov. For identity theft, visit identitytheft.gov. You should also contact your local police and your bank.
Sources & References
  1. 01FBI IC3: Cryptocurrency Recovery Scams (PSA)
  2. 02FTC: Scammers May Target You Again
  3. 03CFPB: Frauds and Scams
Related Scams

Pig Butchering Scam

A patient con. The scammer builds a relationship first — romance, friendship, a "wrong number" that turns into daily contact — then steers you onto a crypto platform that looks real and is not. The name is literal: fatten the target on fake gains, then slaughter. By the time a withdrawal stops going through, the money and the person are both gone. These run for months before the ask.

Government Impersonation Scam

Someone claims to be the IRS, Social Security, Medicare, or the police and demands immediate payment or your personal details — or else. Real agencies do not open with threats, do not take gift cards or crypto, and do not arrest you over the phone. The pressure is the product.

Cryptocurrency Investment Scam

A platform, signals group, or "mentor" promises outsized, reliable crypto returns, and the dashboard obligingly shows them. The gains are pixels. The deposits are real and gone. When a withdrawal suddenly requires a "tax" or "fee," you are already past the point of getting anything back.

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