How to protect yourself from cryptocurrency recovery scams

Overview

Recovery scams target people who have already lost money to fraud, promising to help recover stolen cryptocurrency or funds for a fee. Scammers often impersonate recovery companies, law firms, government agencies, or blockchain experts to convince victims to pay upfront or share sensitive information. In many cases, these are the same scammers who carried out the original fraud, now disguised as someone offering to fix it. They cannot recover your funds, and any payment you send simply results in further loss.

How recovery scams work

Scammers follow a predictable pattern designed to exploit victims who are already desperate to get their money back:

Initial contact and false promises

Scammers contact victims — or advertise services — by email, phone, social media, messaging apps, or online ads, claiming they can recover stolen cryptocurrency or frozen funds
They often pose as cryptocurrency recovery specialists, blockchain investigators, law firms, government agencies or regulators, or representatives from exchanges or wallet providers
They may claim the stolen funds have already been located, or that recovery is guaranteed if the victim acts quickly

The upfront fee trap

Once trust is established, scammers claim a payment is required before recovery can begin, often citing legal fees, court costs, taxes, insurance, blockchain verification, or wallet activation/release fees. Victims are typically instructed to:

Transfer money to a bank account or payment app
Purchase and send cryptocurrency to a wallet controlled by the scammer

Scammers often promise these costs will be refunded once the recovered funds are released.

Endless additional payments

New reasons for further payment are invented after each transfer
Common claims include additional verification, extra taxes, anti-money laundering checks, or newly frozen funds
A larger "security deposit" may be demanded before funds can supposedly be released
Each payment is presented as the final step, but the amounts requested continue to increase
If you question the process or refuse to pay more, communication often stops entirely

What actually happens to your money

Important: No real recovery process is taking place. The "recovery specialist" is either the original scammer or a new one working the same target.

Any money or cryptocurrency you send goes directly to the scammer
Due to the irreversible nature of crypto transactions, funds are typically not recoverable
Sensitive information you share can be used to steal even more from you

How to protect yourself

Be wary of anyone claiming they can recover stolen cryptocurrency for a fee — most legitimate law enforcement agencies and regulators do not charge upfront to investigate fraud
Never pay upfront to recover lost funds — requests for advance payment are a hallmark of recovery scams
Verify who you're dealing with — research companies independently and be cautious of unsolicited recovery offers
Be cautious if someone already knows details of your previous scam — fraudsters often share victim information with each other, making recovery scams highly targeted
Never send cryptocurrency to "recover" cryptocurrency — legitimate services will not ask you to send crypto to an unknown wallet

Tip: If you've already lost money to a scam, treat any unsolicited offer to help you get it back with extreme suspicion — especially if it asks for payment

FAQs

Can I get my money back if I've already been scammed?

Cryptocurrency transactions are irreversible, so funds sent to a scammer are typically not recoverable. Report the scam to local law enforcement and the relevant financial crime or consumer protection authority in your jurisdiction.

Is it ever legitimate for a recovery service to ask for payment?

Be very cautious. Legitimate law enforcement and regulatory investigations do not charge victims upfront. If a "recovery" service asks for payment before doing anything, treat it as a red flag.

What should I do if I'm being targeted by a recovery scam?

Stop all communication, don't send any money or personal information, and report the contact to the platform where they reached you and to local law enforcement.