Recovery scams: the second scam after the first

Victims of crypto theft are targeted by fake recovery firms, hackers and "lawyers" who promise to get the money back for a fee. Why they cannot, and where real help comes from.

Last reviewed 2026-10-27 · 2 min read

On this page
  1. What recovery scams look like
  2. Why they cannot do what they promise
  3. The warning signs
  4. Where real help comes from

After a loss, many victims post about it or file reports. Within days, they are contacted by people offering to recover the stolen crypto. This is almost always a second scam, aimed at people who are desperate and already hurt.

What recovery scams look like

  • "Ethical hackers" or "blockchain forensics experts" in replies and DMs, claiming they can trace and reverse transactions.
  • Fake law firms or "asset recovery agencies" with professional websites and testimonials.
  • Impersonated authorities. People claiming to be from a police unit, regulator or international agency who say your funds have been "found" and can be released after a fee.
  • Fake exchange staff saying the stolen funds were frozen and can be returned if you pay a "release fee" or "tax".

Why they cannot do what they promise

  • Confirmed blockchain transactions cannot be reversed by anyone outside the protocol.
  • Tracing stolen funds is possible, but getting them back usually requires law enforcement, a court order and an exchange that holds the funds and cooperates. None of that is something a stranger can sell you for an upfront fee.
  • Genuine authorities do not charge victims fees to return funds.

The warning signs

  • They contacted you first.
  • They guarantee results.
  • They ask for an upfront fee, a "deposit", or payment in crypto or gift cards.
  • They ask for your seed phrase or access to your accounts "to trace the funds".
  • They push you to act quickly and keep it secret.

Where real help comes from

  • Police and national fraud reporting services. See where to report scams. A report creates a record that exchanges and investigators can act on.
  • The exchange where the stolen funds were sent, if it is a known, regulated exchange. Contact its official support through its own website and include the police report and transaction IDs.
  • A qualified lawyer you find yourself, through a professional body, if large sums are involved.

Government agencies, including the FBI, have publicly warned about fraudulent crypto recovery services, including people posing as law firms.