TLDR
Recovery scams involve someone offering to help recover lost money, usually in exchange for an upfront fee.
Scammers often pose as trusted organizations and may already have details about a past incident to boost their credibility.
Warning signs include requests for payment, urgency or guarantees that money will be recovered.
If you’re contacted, taking a moment to pause and verify before sharing information – and reporting the incident if suspicious – can help protect you and others.
Losing money to fraud can be distressing, and it’s natural to want to recover it. Unfortunately, scammers know this and have tactics to take advantage of this vulnerability.
A recovery scam typically involves someone reaching out with an offer to help recover lost funds from a previous scam. They may claim to represent a government agency, law firm or fraud recovery service. But instead of helping, their goal is to collect another payment or gather more personal information, leaving the victim defrauded – again.
The recovery scam journey
While details can vary, most recovery scams follow a similar pattern:
- Making contact
You receive an unsolicited call, text, email or social media message from someone claiming they can help recover lost funds from a previous scam.
- Building credibility
The person may sound official, use convincing language or claim to represent a legitimate organization.
- Gaining trust
They may share details about the original scam or general fraud trends that make the story feel credible.
- Requesting payment or information
You’re asked to pay an upfront fee to cover intangible expenses such as “processing,” “legal costs” or “administration,” or to provide personal or financial details.
- Disappearing
Once payment or information is shared, the contact stops and the promised recovery never happens.
Why recover scams work
Recovery scams are effective because they tap into a very human response: the desire to fix a difficult situation. They often combine a few factors that pull people in, such as:
- A sense of hope to recover lost funds.
- A sense of authority, while posing as officials or experts.
- A sense of urgency, claiming limited-time opportunities or the need for quick action.
Red flags: Spotting a recovery scam
Whether or not you’ve experienced fraud before, these warning signs are worth watching out for:
- Unsolicited contact, offering to recover money.
- Requests for upfront fees, such as administrative or legal costs.
- Unusual payment methods, including cryptocurrency, gift cards or wire transfers.
- Guaranteed results. In reality, it can be very difficult to recover stolen assets – and no legitimate company will offer a 100% guarantee.
- Pressure to act quickly or make a decision on the spot.
- Unprofessional communication, including generic email domains or inconsistent branding.
A good rule of thumb: legitimate organizations won’t ask for payment or sensitive information through an unexpected outreach.
What to do if you’ve been contacted
If you are contacted by someone offering to recover lost funds, a few simple steps can help you stay protected:
- Pause and verify. If the message claims to be from a government agency or organization, contact them directly using official contact information from their website – not what’s provided in the message.
- Don’t send money or share information. Legitimate recovery services don’t ask for upfront payment – especially following unsolicited contact.
- Limit what you share publicly. Be mindful of sharing details about financial situations or past scams online, as this information can be used to target you.
- Report the incident. Reporting helps authorities track and disrupt scams, even if no money was lost. Follow the reporting steps outlined below.
- Delete the message after reporting. Removing the message helps prevent accidental interaction later.
What to do if you’ve shared information or sent money
If you think you may have engaged with a recovery scam, acting quickly can help limit the impact:
- Report the incident: Notify your bank and credit reporting agencies.
- Scan your devices: If you clicked on a link or attachment, it’s a good idea to run an antivirus scan to check for malicious software.
- Change your passwords: Update passwords for any accounts that might be compromised.
- Lock down your credit: If you shared personal information with the scammer, it’s a good idea to place a fraud alert on your credit report.
- Lock or cancel your credit card: If you inadvertently provided the scammer with your credit or debit card information, immediately lock and then cancel your card.
- Alert others: Warn friends and family so they don’t fall for the same scam.
Our complete Digital Safety and Scams booklet includes a detailed directory of reporting contacts in Canada, the United States and the United Kingdom, along with key credit bureau and banking information.
Recovery scams are designed to feel helpful at first glance. After all, they offer a solution at a moment when people may be looking for one. That’s what makes them so effective. But a legitimate organization will never ask for payment or sensitive information out of the blue to recover funds. Taking a moment to pause, verify and question unexpected offers can go a long way in protecting your information – and your peace of mind.
Spotting scams is becoming increasingly hard to do. The best thing is to stay aware of current scams and understand the ways you can protect yourself.
FAQs
In some cases, scammers use lists of past victims that are bought and sold. In others, they cast a wide net with generic messages. Either way, anyone can receive a recovery scam message.
Some legal or financial services may assist in certain situations, but they don’t reach out unexpectedly or guarantee results. Be cautious of anyone who contacts you first or asks for upfront fees.
Avoid responding, clicking links or sharing information. Instead, verify the source independently and report the incident.
Contact your bank and credit bureaus as soon as possible. They can help monitor your accounts and reduce the risk of further impact. Follow the reporting steps outlined above.
In some cases, recovery may be possible through financial institutions or law enforcement, but it’s often complex and not guaranteed.
This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.
