Crypto "recovery" services are scams. Here's how to tell

How recovery scams work

After a scam, many victims get targeted again. Scammers buy, sell, and trade lists of people who have already lost money. Then they reach out pretending to be a law firm, a government agency, a "blockchain forensics" company, or a hacker who can trace your coins.

They ask for a "retainer" or "processing fee" up front. Sometimes they ask for your bank or wallet details. Then they disappear, or they come back asking for more.

What the FBI and FTC say

• The FBI warned in August 2023 about a rise in companies falsely claiming they can recover funds lost in crypto investment scams.
• "Private sector recovery companies cannot issue seizure orders to recover cryptocurrency." (FBI)
• "Law enforcement does not charge victims a fee for investigating crimes." (FBI)
• "Government agencies and legitimate organizations will never ask for money to help you get a refund." (FTC)
• Fraudsters may claim to work with law enforcement or a legal service to look real. (FBI)

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Red flags of a fake recovery service

• They contacted you first, especially soon after your loss.
• They want a fee before they do anything.
• They guarantee they'll get your money back.
• They want payment in crypto, gift cards, wire, or a payment app.
• They claim to be with the FBI, the FTC, a court, or a "crypto regulator."
• They ask for your Social Security number, bank login, or wallet seed phrase.
• You found them through a social media ad, a comment, or a glowing forum post.
• They have vague claims, few real details, and little real history online.

What to do instead

1. Report to the FBI at ic3.gov

   Include transaction details, wallet addresses, and any records of people who offered to recover your money.

2. Report to the FTC

   At ReportFraud.ftc.gov. It's free.

3. Contact the exchange or ATM operator

   Tell them the transaction was fraud. Ask if they can freeze or reverse anything.

4. Call your bank

   If you moved money from a bank account to buy crypto, tell your bank's fraud line.

5. If you're 60 or older

   Call the National Elder Fraud Hotline at 1-833-372-8311. A case manager can help you report.

6. Verify any claimed FBI contact

   If someone says they're with the FBI, contact your local FBI field office yourself to check.

Who legitimately helps

If a recovery offer reached you by email, text, or letter and you're not sure about it, OwlGuardian's Call My Owl can give a quick scam verdict on a screenshot or photo.

• Law enforcement, through ic3.gov or your local police. Free.
• Your bank and the exchange or ATM operator.
• Your state attorney general's office, which takes consumer complaints.
• A licensed attorney you find yourself, for example through your state bar's referral service. Check the license, and be wary of anyone promising results.
• The AARP Fraud Watch Helpline at 1-877-908-3360, for free support from trained volunteers.

Questions people ask