The Second Scam: How 'Fund Recovery' Fraudsters Hunt People Who Were Already Robbed
After a scam comes a colder one. Fake 'fund recovery' agents, fictitious law firms and bogus officials promise to claw back what you lost, for a fee, and steal again. The FBI logged $1.4 billion lost to recovery scams in 2025. Here is how the second scam works, and the one rule that stops it.
Losing money to a scam is bad enough. What many victims do not see coming is the second scam, aimed squarely at them because they were already robbed. Within weeks, sometimes days, a "fund recovery" agent, a "law firm," or someone claiming to be a government investigator makes contact with a comforting message: we can get your money back. All they need is a fee up front. It is a fresh theft dressed as a rescue, and it is one of the most documented fraud patterns in the world.
How the second scam works
Recovery fraudsters often buy or steal lists of earlier victims, so they already know your name, what you lost, and how. That knowledge makes them sound credible. The approach usually follows a script: they express sympathy, claim a special ability or legal authority to trace and freeze the funds, then ask for an advance payment described as a "tax," "release fee," "retainer," or "court cost." Pay it and there is always another fee, until you stop. The FBI has warned about this pattern repeatedly, including specific alerts about fictitious law firms targeting cryptocurrency victims and about criminals impersonating real agencies. In one variant, fraudsters even posed as the FBI's own Internet Crime Complaint Center, which logged more than 100 reports of that impersonation alone.
Why crypto victims are hit hardest
Cryptocurrency losses are the favourite hunting ground, because crypto is hard to trace and victims are desperate to believe recovery is possible. The reality is harsh: once crypto leaves your wallet to a scammer, it is rarely recoverable, and anyone guaranteeing they can reverse the blockchain is lying. Legitimate tracing exists, but it is done by law enforcement as part of an investigation, never by a stranger who contacts you first and asks for money.
A global pattern
This is not a single-country problem. In the United Kingdom, the Financial Conduct Authority received 4,465 reports of fake-regulator scams in the first six months of 2025 alone, with hundreds of people sending money to fraudsters who claimed an official body had recovered their funds. In Australia, the national anti-scam centre warns that roughly one in three scam victims is at risk of being targeted again, often by exactly this kind of follow-up fraud. Wherever you live, the playbook is the same.
The one rule that stops it
You only need to remember a single line: no legitimate government agency, regulator, police force or law firm charges an upfront fee to recover scammed money, and none of them will contact you out of the blue to offer it. The FBI states plainly that law enforcement does not charge victims a fee to investigate. The US Federal Trade Commission puts it just as bluntly: if someone promises to get your money back but wants payment first, that is another scam. So the moment a "recovery" offer involves any advance payment, gift cards, crypto, or a fee of any kind, walk away.
- Assume any unsolicited recovery offer is a scam. Real investigators do not cold-call victims promising refunds for a fee.
- Never pay upfront. No tax, retainer, release fee or "unlock" payment is ever legitimate for fund recovery.
- Verify independently. If a caller claims to be from a real agency, hang up and contact that agency through a number you look up yourself.
- Report it through official channels only. File with the FBI at ic3.gov, the FTC at reportfraud.ftc.gov, or your national fraud reporting service. These are free.
If you were the first scam's victim
Focus your energy on the legitimate steps, not on a stranger's promise. Act fast through your bank and the official channels in our guide to the first 24 hours after a scam, and treat every "we can recover it" message that follows as the trap it almost always is.
Frequently asked questions
Can anyone really recover money lost to a scam? Sometimes, through your bank and law enforcement if you report quickly, but never through a stranger who contacts you first and asks for an upfront fee.
A "law firm" emailed saying it can get my crypto back. Is it real? Almost certainly not. The FBI has issued specific warnings about fictitious law firms targeting crypto victims. Legitimate firms do not find you this way.
Why do recovery scammers know about my earlier loss? Victim details are bought and sold among criminals, so a follow-up scammer often already knows what you lost. That knowledge is a manipulation tool, not proof they are real.
How do I report a recovery scam? Use official channels such as the FBI's ic3.gov or the FTC's reportfraud.ftc.gov, or your country's national fraud service. They never charge a fee.