MONEY DECODED

Crypto Recovery Scams: The Second Scam After the First

After someone loses money to a crypto scam, they often become the target of a second one. Fake "recovery experts", "blockchain investigators" or even people posing as lawyers or police contact the victim and promise to get the money back.

How it works

They find victims through scam-report forums, social media posts and ads aimed at people who lost money. They sound professional, may show fake certificates or case numbers, and claim they can trace and freeze the stolen funds. They ask for an upfront fee, then more fees for "taxes", "legal costs" or "wallet unlocking". No money is ever recovered.

Red flags

• Someone contacts you first offering to recover your crypto.
• They guarantee results or say they can "hack back" the funds.
• They want payment upfront, in crypto or gift cards.
• They ask for your seed phrase or remote access to your computer.

What actually helps

• Stop sending money to anyone.
• Save every message, address and transaction ID.
• Report it to the exchange you used, your bank and the police. In the US, also to the FBI's IC3 (ic3.gov) and the FTC (reportfraud.ftc.gov).
• If you want a lawyer, find one yourself through your local bar association, never through an ad or a DM.