Fake Recovery Companies: How to Spot Recovery Scams
The cruelest fraud is the one that targets people already defrauded. Recovery scams prey on victims of the original scam. Here is how to tell a legitimate recovery firm from a fraudulent one.
DigitalBank Intelligence's analysis: The cruelest fraud is the one that targets people already defrauded. Recovery scams prey on victims of the original scam. Here is how to tell a legitimate recovery firm from a fraudulent one.
The scam after the scam
You have been defrauded. You search for help. A firm contacts you — or you find one online — promising to recover your stolen funds. They sound professional. They cite case numbers. They may even claim to be affiliated with law enforcement or a regulator.
This is the recovery scam. It is the second fraud, built on the ashes of the first. And it works because the victim is desperate and the offer is exactly what they want to hear.
The universal red flags
Regulators including the FCA (UK) and FTC (US) have published explicit warnings. Any "recovery" firm exhibiting these signs is almost certainly fraudulent:
Guaranteed recovery
No legitimate firm guarantees recovery of stolen assets. The outcome of any investigation depends on facts that cannot be known in advance. A guarantee is the single most reliable indicator of fraud.
Upfront fees
Legitimate recovery firms that work on a success basis charge a percentage of recovered funds — paid after recovery. A firm demanding an upfront fee, "retainer," "processing charge," or "verification deposit" before any recovery is a fraud.
Unsolicited contact
If a firm contacts you out of the blue claiming you were a victim of a scam they can fix, be deeply suspicious. Legitimate firms do not have access to victim lists. Scammers do — because they bought your details from the people who defrauded you.
Impersonation of authorities
Fraudulent recovery firms frequently claim affiliation with regulators, law enforcement, or blockchain analytics companies. Verify every affiliation directly with the cited organization — never through a link the firm provides.
How to verify a legitimate recovery firm
- —Success-based fee structure — you pay only on actual recovery.
- —Verifiable identity — the firm and its principals are independently findable.
- —No guarantees — an honest firm tells you what is achievable and what is not.
- —Transparent process — you understand each step before committing.
- —Lawful methods — operations conducted within applicable local law, coordinated with counsel.
Our standard
We charge 30% of funds recovered, and nothing if we recover nothing. We do not guarantee outcomes. We do not solicit victims. We do not require upfront payment. We assess each case confidentially and tell you honestly whether we can help — because our incentive is aligned with yours. We win only when you win.
If a recovery firm's offer sounds too good to be true, it is. Protect yourself first; recovery second.