Recovery Scams: How Fraudsters Target Past Victims Again | InvestorWatchdog

Last updated: August 2026

Risk Level: High

Recovery scams follow up on a previous fraud — and according to the UK’s FCA, the losses from the follow-up scam can end up larger than the original one, because fraudsters deliberately target the desperation of people trying to get their money back. Fraudsters pose as recovery specialists who claim they can retrieve lost funds, for an upfront fee that guarantees nothing.

What It Is

Recovery scams target people who have already been defrauded. Fraudsters pose as recovery specialists, lawyers, or government agents who claim they can retrieve lost funds — for an upfront fee. Victims are scammed a second time, often losing additional money on top of their original losses.

How It Works

Scammers monitor fraud reports, court filings, and victim forums to identify previous fraud victims.
They contact victims claiming to be recovery specialists, lawyers, or government agents.
They claim to have identified the original scammer’s assets or funds.
They request upfront fees for “legal costs,” “government fees,” or “processing charges.”
After payment, they disappear — or request additional fees before “releasing” the funds.

Warning Signs

Unsolicited contact from someone claiming they can recover your lost funds
Requests for upfront fees before any recovery takes place
Claims to be from a government agency, but asks for payment
Guarantees of full recovery — no legitimate service can guarantee this
Pressure to act quickly before the “opportunity” expires
Requests for payment via wire transfer, crypto, or gift cards

A Note If Someone Contacts You Claiming to Be InvestorWatchdog

InvestorWatchdog will never contact you asking for payment, fees, or personal financial details in connection with recovering lost funds. If you’re contacted by someone claiming to represent us with an offer like this, it is not us — treat it as a recovery scam and report it using the steps below. You can always verify genuine contact from us through Submit a Tip.

What To Do

Do not pay any upfront fees — legitimate recovery services do not charge upfront.
Verify any company through official regulatory registers, not the claims they make about themselves.
Report the recovery scam to the same authorities you reported the original fraud to.
Warn other victims in forums or support groups.
Consult a legitimate fraud lawyer if you want to explore legal recovery options — find one here.
Submit a tip to InvestorWatchdog if you’ve encountered a recovery scam operator — your report may help us warn others.

Frequently Asked Questions

Are there legitimate fund recovery services? Legitimate legal services exist, but they typically work on a contingency basis or charge transparent, verifiable fees after recovery — not before. They will never guarantee recovery, never ask for payment via gift cards or crypto, and will always be verifiable through official regulatory registers. Always verify independently before engaging one.

How did they know I was scammed? Recovery scammers monitor public fraud reports, court filings, social media posts, and victim support forums. Some original scammers even sell victim lists directly to recovery scam operators. This is why it’s worth being cautious about what personal information you share publicly after being defrauded.

Can I trust a recovery service that InvestorWatchdog has covered or mentioned? A service we’ve reported on positively has been through more scrutiny than a cold call or an online ad — we check regulatory status and track record before we mention anyone favourably, and that’s worth more than an unverified approach. But it’s still not a substitute for checking yourself: confirm the service’s current status before paying anything.

What should I do if I already paid a recovery scammer? Treat it the same as your original fraud: stop all further payments, document everything, report to your bank and fraud authority immediately, and see our Compensation Schemes guide for what protection may apply. Being scammed twice doesn’t reduce your options — it just means reporting both incidents.