Recovery scams: 8-question warning-sign check
Each yes identifies a warning sign to check independently. A count cannot establish whether a person or service is legitimate. Details of an earlier loss are not proof of authority.
Everything runs in this browser; nothing typed here is sent anywhere.
The eight questions form a manual checklist. Before any payment or disclosure, the affected person should verify the claimed organization through an independently found official contact. Upfront recovery fees should not be paid.
Suspicious recovery offers can be reported to the FTC and FBI IC3.
Based on: FTC refund and recovery scams and FBI IC3 recovery-company warning, August 11, 2023.
Recovery scams target people who have lost money and promise its return after another payment. The FTC warns that callers may impersonate government agencies, lawyers, or consumer groups. An unsolicited offer can sound credible because the caller knows about the loss. That knowledge shows the caller has information about the loss, not authority to recover money or handle a refund.
When assessing recovery scams, stop before sending an advance fee, account details, or identity documents to the person making the offer. Check the claimed organization through an independently obtained official route. If a payment has already been made, follow the payment response steps immediately. Keep the recovery request separate from the original scam when organizing messages and receipts for reporting.
Recovery scams and fund recovery promises
The FTC’s recovery warning describes callers who buy information about earlier victims and use it to make a new approach convincing. They may claim the money is already available and demand a release payment. Treat the original loss amount, case description, and personal details as information the caller possesses, rather than evidence that the caller represents an official organization.
A practical verification note can separate the claimed role, promised action, and requested payment. Write down exactly what the caller says each payment accomplishes. This suggested method helps expose a sequence of changing explanations without assuming that every person using the phrase fund recovery has the same status or legal authority to act on the affected person’s behalf.
Warning signs in recovery scams
The CFTC’s advisory highlights unsolicited approaches, advance payments, requests for financial information, and pressure to communicate through messaging services. It also warns about promotions distributed as news-style press releases. Evaluate the claimed service and authority directly. A polished page, reassuring testimonials, or a familiar organization name should not replace verification of the particular offer being made to the recipient.
- An unsolicited promise to retrieve an earlier loss.
- A payment described as a tax, deposit, or release fee.
- A claimed official role requiring independent confirmation.
- A demand for financial information to release supposed recovered money.
Keep those warning signs tied to the actual message instead of relying only on a company’s name. For example, retain the sentence promising release after payment and the instructions identifying the recipient. This creates a useful factual record. The official reporting overview identifies different agency routes when the second approach involves consumer deception, internet communications, or another financial payment.
Cryptocurrency tracing and seizure powers
The FBI’s August 11, 2023 alert explains that private recovery companies cannot issue cryptocurrency seizure orders. Exchanges freeze accounts through internal procedures or legal process. The alert describes scammers taking advance fees, disappearing, or producing inadequate tracing reports before requesting more payments. A report showing transaction movements should not be confused with an enforceable order requiring funds to be returned.
Preserve the original cryptocurrency transaction records alongside any later tracing document. Label who supplied each document and what it claims to demonstrate. This suggested filing method separates the original payment evidence from a recovery provider’s assertions. Avoid treating a displayed wallet balance or proposed recovery amount as proof that the provider holds money belonging to the affected person.
Check claimed official contacts independently
The FBI says law enforcement does not charge victims a fee for investigating crimes and recommends checking claimed FBI affiliations through a local field office. Use independently obtained contact details. The phone verification guide explains why a displayed number should be assessed separately from the caller’s claimed identity, especially when a familiar agency name appears on the screen.
A genuine restitution notice should also be checked carefully rather than dismissed automatically. The CFTC recommends independently checking the relevant agency or court and authenticating the communication. Keep the notice intact while recording the verification result. Distinguish an agency’s confirmed instructions from a caller’s explanation of those instructions, including any added demand for money or access to an account.
Reporting additional recovery scam payments
If recovery scams have led to another payment, contact the payment provider promptly using the FTC’s response guidance. Report consumer deception to ReportFraud.ftc.gov and cyber-enabled schemes to IC3. The FTC also recommends reporting recovery schemes to the state attorney general. Retain both sets of receipts so the original loss and later recovery payment remain distinguishable in the incident account.
IC3 advises retaining original evidence and saving a copy of the submitted complaint. Prepare a timeline that identifies the earlier scam, the new approach, and each additional request. Keep the recovery offer’s contact details and payment instructions. This record can explain the second incident without obscuring the action already requested from providers concerning the first loss and any exposed accounts.
Questions and answers
Why does a recovery caller already know the lost amount?
The FTC explains that scammers buy and trade information about earlier victims, including contact details and losses. A caller knowing the amount does not authenticate the organization. Independently check the claimed agency or business before providing information or acting on the request.
Can a private tracing company order cryptocurrency seized?
The FBI says private recovery companies cannot issue cryptocurrency seizure orders. Exchanges freeze accounts through internal processes or legal process. A tracing document therefore should not be treated as proof that the sender can compel a return of the funds.
Does law enforcement charge a victim to investigate?
The FBI's recovery scheme alert says law enforcement does not charge victims a fee for investigating crimes. Independently verify any claimed FBI affiliation through a local field office. A demand for money to activate an investigation is a reason to stop and check.
Are recovery advertisements in news articles reliable proof?
The CFTC warns that fraudulent recovery businesses can distribute promotional press releases that appear on news websites. An advertisement or republished promotion provides no evidence of official authority. Check the actual organization and claimed process independently before sharing payment or personal information. Use independently obtained contact details before responding to the offer.
What if a caller describes a fee as a tax?
The FTC says refund scammers may call upfront charges taxes, administrative fees, or processing costs. A changed label is no indication that a refund is legitimate. Keep the request and independently verify the claimed agency rather than paying to release the promised money. Record the stated reason for the charge with the request and related message.
Should a refund check be followed by a return payment?
The FTC warns about supposed refund checks for more than the loss, followed by requests to send back the difference. A check can later prove fake. Do not treat available funds as proof the check is genuine or send money on that basis.
Can a genuine restitution letter be checked safely?
The CFTC recommends independently visiting the agency or court website, or calling through independently verified contact information. Avoid relying on contact details in the letter until authenticated. A cautious verification step allows a real notice to be assessed without paying an unsolicited caller.
What if an upfront recovery fee has already been paid?
Contact the payment provider immediately and ask about reversing the payment or obtaining a refund, following the FTC's payment guidance. Preserve the recovery messages and receipts. Report the second incident as well as the original loss, keeping each payment identifiable in the timeline.
Sources
- Refund and Recovery Scams · Federal Trade Commission
- Increase in Companies Falsely Claiming an Ability to Recover Funds Lost in Cryptocurrency Investment Scams · FBI Internet Crime Complaint Center
- Do Not Be Re-Victimized by Recovery Frauds · Commodity Futures Trading Commission
- What To Do if You Were Scammed · Federal Trade Commission
- Frequently Asked Questions · FBI Internet Crime Complaint Center