Crypto recovery scams: why people who lost money get targeted again, and how to spot them

Losing money to a crypto scam is devastating. For many victims, the next blow comes a few weeks later: a message from someone who says they can get the money back. A “law firm”, a “blockchain forensics” company, a “government task force”. All they need is a fee first.

These are recovery scams, and they’re designed specifically for people who have already been scammed. This guide explains how they work, using official warnings, and how to protect yourself or someone you’re helping.

How big the problem is

In its 2025 report, the FBI’s Internet Crime Complaint Center (IC3) recorded 10,516 complaints about recovery scams, with $1.4 billion in losses. The FBI notes that figure may include losses from the original scam that led to the contact, and it reported an increase in complaints about people impersonating government officials and recovery firms.

Older victims are hit hardest:

Why victims get targeted again

The FTC explains that scammers buy, sell and trade lists of people who have already lost money to scams. Being on such a list makes you a target, and scammers know that someone who has lost savings is desperate to get them back.

How recovery scams work

Fake law firms

In June 2024 the FBI warned about fictitious law firms targeting crypto scam victims. According to the FBI, the fake lawyers:

• Contact victims through social media or messaging apps.
• Claim they’re working with, or have received information from, the FBI, the Consumer Financial Protection Bureau or another agency.
• Ask victims to verify their identity with personal or banking details.
• Ask for a share of the fees upfront, with the rest due on recovery, or for “back taxes” and other fees.
• Mention real financial institutions to seem credible.

Between February 2023 and February 2024, victims of these fake firms reported losses of more than $9.9 million.

Fake FBI and IC3 profiles

In July 2026 the FBI warned that scammers are impersonating the IC3 itself. They create fake FBI profiles on platforms like Facebook and Telegram, promote spoofed complaint portals, and use AI-generated videos of senior FBI officials to send victims to fraudulent websites.

How to recognize the real IC3

The FBI’s July 2026 alert explains how to tell the real complaint site from the fakes:

• Type www.ic3.gov yourself into the address bar, and check that the address ends in .gov.
• Skip sponsored search results: the paid links at the top are often imitators.
• Fake portals often use a short form asking only for your name, phone number, email, the type of scam and how much you lost, unlike the real complaint process.
• The IC3 has no social media accounts. Any profile claiming to be the IC3 is fake.
• Look out for signs of deepfakes in videos of “FBI officials”: distorted hands or feet, unrealistic features, wrong shadows, or a voice that sounds unnatural.

“Refunds” from the company that scammed you

The FTC says recovery scammers may pretend to be a government agency, a consumer group, a law firm or even the company that originally took your money. The Canadian Anti-Fraud Centre describes calls offering a “refund” because the company is going bankrupt, or asking victims to help with a “sting operation” against the fraudsters.

The fee, under many names

The FTC says recovery scammers may call the upfront payment a retainer fee, processing fee, administrative charge, tax or shipment and handling charge. They often insist on payment by cash, gift cards, cryptocurrency, wire transfer or payment app.

Warning signs

• Someone contacts you first, especially through social media, a messaging app or a comment under your post about being scammed.
• They know about your loss and claim a government agency shared your case.
• They guarantee they can get your money back.
• They ask for an upfront fee or for crypto to “unlock” or “release” funds.
• They want remote access to your computer or phone.
• They ask for your seed phrase, passwords or bank logins.
• Ads promise “crypto recovery” services. The FBI advises being wary of them.

What the authorities actually say

• FBI: law enforcement doesn’t charge victims a fee for investigating crimes.
• IC3: it doesn’t maintain a social media presence, will never contact you directly by phone, email or social media, and will never ask for payment to recover lost funds.
• FTC: government agencies and legitimate organizations will never ask for money to help you get a refund.
• Canadian Anti-Fraud Centre: the CAFC and police will never ask you to transfer funds or make a payment of any kind.

Can money ever be recovered legitimately?

Sometimes, but not through someone who contacts you asking for a fee. Real recovery happens through law enforcement and the courts:

• Fast reporting matters. In 2025, the FBI’s Financial Fraud Kill Chain process helped freeze $32.9 million in cases involving victims aged 60 and over, out of $65.4 million reported.
• Seized crypto can go back to victims. When the US government forfeits crypto, the March 2025 executive order on the Strategic Bitcoin Reserve lets agencies use it to return funds to identifiable and verifiable victims of crime. See the US Strategic Bitcoin Reserve.
• No fees. The FBI says law enforcement doesn’t charge victims for investigating crimes.

If you’re told your money has been “found” and can be released for a fee, it’s a scam.

How to protect yourself

1. Never pay upfront to recover money. This one rule stops almost every recovery scam.
2. Don’t respond to unsolicited offers, however official they look.
3. Contact agencies yourself. Type the address of the official site into your browser: ic3.gov in the US, Report Fraud in the UK, the Canadian Anti-Fraud Centre in Canada.
4. Never give remote access to your devices, and never share your seed phrase. See seed phrase security.
5. Talk to someone you trust before acting. Scammers rely on urgency and secrecy.

If you’ve already paid

• Stop sending money and stop responding.
• Save everything: messages, profiles, websites, payment details, wallet addresses.
• Report it: in the US to the IC3 and to the FTC at ReportFraud.ftc.gov; in the UK to Report Fraud; in Canada to the Canadian Anti-Fraud Centre and your local police.
• Tell your bank if you paid by card or bank transfer.
• Expect further attempts. Be ready to say no.

For how the original scams work, see pig butchering scams, fake crypto apps and phishing and, for the tax side of a loss, crypto scam losses and tax.