March 31, 2025

Don’t Fall for a Second Scam: How to Spot and Avoid Recovery Scams

Falling for a scam is hard enough—but what’s even worse is that some scammers don’t stop there. They come back pretending to help you recover your lost money or identity. These are called recovery scams, and they target people who’ve already been victimized, hoping to exploit them again when they’re vulnerable and desperate for answers.

If you’ve been scammed once, here’s how to avoid becoming a victim twice.

How it works

Target: Someone who's been recently scammed.

Tactic: Claim that they offer help recovering lost assets

Catch: They require upfront payment or bank account information to recoup losses. That's is what they're after.

What it looks like

A recovery scam happens when someone contacts you claiming they can help you recover money, repair your credit, or catch the scammer who targeted you. They might say they’re from a government agency, law enforcement, a law firm, or even a fake fraud recovery company.

Here’s the catch: they’ll ask for money upfront. It might be called a “processing fee,” “filing cost,” or “taxes” that need to be paid before the recovery can happen. Sometimes they’ll ask for sensitive information, like your ID or bank account, saying it’s necessary to “verify your claim.” But it’s all fake. Once they have your info—or your money—they vanish.

How to Spot a Recovery Scam

Here are the red flags to watch for:

• They contact you out of the blue. You get a call, email, or message from someone who “heard” you were scammed or “found your case online.”
• They ask for payment in advance. No legitimate agency or law enforcement group will ever ask you to pay to recover your own stolen money.
• They pressure you to act fast. Scammers often create a sense of urgency to get you to act before you think.
• They promise guaranteed results. No recovery process can promise 100% success—especially not overnight.
• They want payment through gift cards, crypto, or wire transfer. These methods are hard to trace and nearly impossible to reverse.