Recovery Scams

What it is

Recovery scams target people who have already lost money and promise to retrieve it for a fee. The supposed helper may claim to be an investigator, lawyer, regulator, or cryptocurrency specialist. They exploit urgency and hope, sometimes using details of the original fraud to seem credible or implying they have located the stolen funds.

How it works

The attacker finds victims through public complaints, direct messages, advertisements, or data shared by the original scammers. They request an upfront charge, a 'release tax,' wallet access, or identity documents. Each payment can lead to another invented obstacle; a displayed recovered balance may be entirely fabricated.

How people get tricked

Someone who knows the exact amount lost appears knowledgeable. After a painful loss, even a costly promise can feel like the last chance. Genuine recovery processes have limits and do not require handing a stranger your wallet seed phrase or paying to unlock imaginary funds.

Example scenario

After you post about a crypto loss, a supposed investigator says the funds are located. They demand a fee and your seed phrase to 'validate ownership,' which would actually give them control of your wallet.

Warning signs

• Unsolicited contact guarantees recovery or claims privileged access.
• Fees keep increasing before any independently verified result.
• The helper requests seed phrases, private keys, or remote device access.

If it happens to you

Stop further payments and preserve the full correspondence. Contact the relevant payment provider and report both scams. If wallet secrets were exposed, use trusted guidance to move remaining assets to a new secure wallet; changing an account password does not replace a compromised seed phrase.