A recovery scam is a type of fraud that targets victims who have already been scammed, offering to help them recover their lost investment funds for a fee. Often these are the same scammers that scammed you before. The scammer may pose as a government agent, lawyer, private investigator, or a recovery firm. The scammer will request an upfront fee to cover various costs (processing fees, taxes, legal costs).
Red Flags
- Unsolicited contact: You are contacted by someone you do not know, who claims to know about your previous scam experience.
- Recovery guaranteed: The company offers a money-back guarantee. Legitimate recovery professionals will not make these claims.
- Impersonate legitimate entities: The company claims to be, or to work for, a government or law enforcement agency (without official verification).
- Secrecy: You are asked to keep the matter confidential.
- Request for unusual payment methods: The scammer requests payment in cryptocurrency, gift cards, cash, gold, or other means that are hard to trace or reverse.
Recovery Scam Checklist
- Were you contacted out of the blue by someone who knew about your previous scam experience (text, email, call, messaging app)?
- Does the company offer a money-back guarantee?
- Does the company claim to work for a government or law enforcement agency?
- Are you being asked to pay upfront fees?
- Is there pressure to act fast?
- Is there pressure to keep the transaction secret or conceal the truth for your use of funds from financial institutions?
- Are you being asked to make your payment using cryptocurrency?
- Are you being asked to transfer money to a foreign bank account?
If you answered yes to any of these questions, you may be a victim of a recovery scam.