Sadly, falling victim to a scam can put you at greater risk for another. At Wealth Recovery Solicitors, one of the fastest-growing schemes we see is the recovery scam, with some reports showing a 129% rise in cases.
Here, we explain what recovery scams are, how they work, and how you can protect yourself from them.
What are recovery scams?
Also known as ‘follow-up fraud’, recovery scams are where fraudsters pretend to help reclaim the money you’ve lost from a previous scam. They’re often carried out by the same people who scammed you originally.
Typically, the story begins years earlier. It starts with someone investing a small amount, often around £250, into what appears to be a legitimate trading or cryptocurrency platform.
After realising the investment was a scam, the victim often writes it off as a loss and moves on, assuming the money is gone for good.
Then, unexpectedly, they receive a phone call or email that reignites hope. The caller claims to represent a recovery firm, law office, or financial investigator.
They explain that:
- The original company has been liquidated.
- The funds have been recovered, or profits have quietly accumulated in the background and are now ready to be released.
- All the person needs to do to receive their funds is open a cryptocurrency account and deposit a small amount to “activate the transfer.”
- It sounds plausible, even exciting. But in reality, this is simply the next stage of the same deception.
The anatomy of a recovery scam
Recovery scams appear convincing, relying on hope, guilt, and trust.
Fraudsters often use information from your original scam, such as the previous scam company name, your email address, or the amount you’ve previously lost, to make their approach sound legitimate.
Here’s how recovery scams usually unfold:
1. The approach
The victim receives an unsolicited call or email claiming to be from a recovery agency, a law firm, or a regulatory body such as the FCA or HMRC. The scammer often uses an authoritative tone and may reference genuine legal terminology.
2. The credibility hook
They mention specific details about the original scam, such as the company name, investment amount, or transaction date, which instantly builds trust. These details often come from leaked databases or lists of scam victims shared between fraud groups.
3. The “good news”
The caller announces that the victim’s funds are recovered, being held securely, or have generated profits through previous investments. This good news creates relief and optimism, all of which are key triggers that make the next step easier to accept.
4. The request
Before funds are released, the victim is told they must pay administration fees, taxes, anti-money laundering clearance, or account verification costs. Fraudsters usually request payment in cryptocurrency, which is often justified by convincing paperwork or fake legal explanations.
5. The escalation
Once the victim makes a payment, the scammer invents new complications, such as additional “fees” being required, officials “reviewing the transfer”, or the funds being “stuck in the blockchain”. These are only a handful of excuses we hear, and each explanation keeps the victim engaged until the fraudster disappears altogether.
Why recovery scams are on the rise
We attribute this significant surge to data leaks and the sale of victim information on the dark web through ‘sucker lists’.
Once someone falls victim to a scam, their details often circulate among fraud networks for fraudsters to retarget them months or even years later.
These scammers know you’re likely still upset or frustrated about the money you lost. They’ll exploit that vulnerability, offering hope of recovery while quietly orchestrating another theft.
The different types of recovery scams
Recovery scams can happen in several ways. Some of the most common are:
Cryptocurrency recovery scams
Social media platforms are a hotbed for crypto recovery scams.
Here’s how they usually work:
- The scammer makes contact, often on social media sites like Reddit or X. They may message you directly, promote their ‘services’ using hacked accounts, or create fake crypto recovery websites.
- They claim they can recover your lost funds but will need your personal or wallet details to do so. They will also likely ask for an upfront fee for their ‘services’.
- Then they take your funds and disappear.
Overpayment refund scams
This type of scam targets people selling items online or through online businesses.
Here’s how they usually work:
- A scammer gets in touch. They want to buy an item you’re selling.
- When they pay, they pay too much – usually through a cheque, money order or an online payment processor.
- You’re asked to refund the extra amount to a different account through a wire transfer, crypto, or some other way that can’t be reversed or disputed.
- Later, you realise the original payment was fake or never cleared. This means you’ve lost the refund you sent and never received any legitimate payment in the first place.
Social media ‘recovery specialists’
Scammers search for recent victims on social media sites. Once you post about a recent scam, they’ll flood your inbox with offers to help recover your money.
Here’s how they usually work:
- You post on a social media site (such as Reddit or X) about a scam
- Scammers get in touch, claiming they can help you.
- They’ll ask for an upfront fee. They may also request your personal information so they can get your money back.
- Two things are likely to happen then: one is you may be overcharged for a recovery service you could’ve done yourself. Or they disappear with your money and sensitive information.
Investment fraud recovery scams
Victims of investment fraud can lose huge amounts of money. So, it’s no wonder that so many try to recover their losses.
Here’s how these recovery scams usually work:
- Scammers get in touch with you.
- They claim to be from a trusted organisation, like a law firm or government agency. They claim they can get your money back.
- They’ll ask for an upfront fee and your personal information for their ‘file report’.
- In most cases, they’ll then take your fee, and you end up losing even more.
Tech support recovery scams
These types of scams usually involve some kind of refund fraud. They’re one of the more sophisticated recovery schemes out there.
Here’s how they usually work:
- You get an invoice for a product or service that you never ordered. On the invoice is a contact number for ‘technical support’ – should you have any issues.
- Naturally, many people call. When they do, scammers ask them to download software that will help the refund go through. However, this software gives them access to your computer.
- Then they log on to your bank account to prove your refund has been processed.
- Cunningly, scammers will use the software you’ve now installed to show you a completely different number in your account than what’s there.
- Then, they’ll ask you to refund the difference.
- This is where you probably realise it was a scam. But by then it’s too late – the scammer has disappeared with your money.
How to spot a fake or clone recovery firm
We recommend checking if the recovery firm is FCA registered. That’s because all legitimate firms must be authorised or registered by the FCA.
Here’s how to check:
- Use the FCA Firm Checker to look up the company’s name.
- Make sure they’re authorised and have permission to offer the specific product or service you selected.
- Cross-check their contact details against what’s listed on the FCA site. If anything doesn’t match or if the firm isn’t listed at all, report it to the FCA on 0800 111 6768.
But that’s not the only way of spotting a clone recovery firm. There are also a host of other tell-tale signs to watch out for, including:
- Using web-based email addresses, such as Gmail or Hotmail. Official agencies will never do this.
- Being cold-called.
- Scammers will often claim they work for official organisations, such as the FCA or a law firm.
- Using high-pressure tactics, encouraging you to act quickly.
- Being vague about how they will recover your money. There probably won’t be a clear plan.
- Asking for upfront fees for their ‘recovery services’. Most legitimate firms won’t do this.
Common red flags to watch out for
At Wealth Recovery Solicitors, we’ve reviewed hundreds of cases involving recovery scams.
If you’re contacted by anyone claiming they can help recover your funds, stay alert for these warning signs:
- You didn’t contact them first: Legitimate firms like Wealth Recovery Solicitors never cold call or message out of the blue. We will only contact you after you have made an inquiry on our website.
- They ask for payment up front: Genuine legal firms don’t demand deposits before beginning work. At Wealth Recovery Solicitors, we work on a no-win no-fee basis. This means you only pay if your claim is successful.
- They insist you open a crypto wallet: Reputable UK law firms will never ask you to move or deposit money in cryptocurrency.
- They use unofficial emails: Check the sender’s domain carefully. Our only official email addresses, for instance, end in @wealthrecovery.co.uk. Scammers have been employing similar, look alike email addresses such as support@form-wrs.org, info@wrs.co.uk, support@wealthrsolicitors.org, Wrsworld.net and nicolekellywrs@gmail.com.
- They pressure you to act quickly: Urgency and emotional pressure are key scam tactics. We’ll never pressure you to send us money.
- Untraceable communication channels: Regulated UK solicitors communicate through secure, traceable channels only, such as email. Our First Response Team may WhatsApp you; however, we always initiate first contact by phone and email after you complete the inquiry form on our website.
How to respond if you’re contacted by a scammer
If someone contacts you claiming to have recovered your funds, pause before acting and protect yourself by following a few simple steps:
- Get verification on the sender: Don’t send money or share personal documents until you’ve verified who you’re dealing with. Conduct a Google search on the individual and if they’re claiming to be from a law firm or regulated entity, search their name on LinkedIn.
- Check the company the sender ‘represents’: Search online for the company name along with words like “scam” or “fraud.” Also review TrustPilot and similar sites to determine whether other individuals have been contacted by the company.
- Reach out to the real company in question: Contact the real organisation directly using official details from their website, not those provided in the message. If someone has contacted you claiming to be from Wealth Recovery Solicitors, please contact the office by phone or email. We’ll be happy to confirm whether the person works for us, or whether it is an impersonation of our company. Alternatively, head to our ‘About Us’ page on our website, where you can find each of the team’s direct email addresses and LinkedIn profile.
- Contact Action Fraud: Report the contact to Action Fraud or your local police if you suspect criminal activity.
- Get representation: Seek professional legal advice from a regulated firm like Wealth Recovery Solicitors before responding to any recovery offer.
Think you’re the victim of a recovery scam? We may be able to help
If you think you’ve fallen victim to a recovery scam, we know what you’re going through, and you’re not alone. This type of scam is on the rise and whatever has happened isn’t your fault.
The good news is we may be able to recover the money you’ve lost, including any funds lost in a follow-up scam.
As an SRA regulated firm, our trusted UK-based solicitors can help track down your assets and build a case for recovery. It’s why we’ve recovered over £50,000,000 in just three years. We also provide a no-win, no-fee service. You only pay if your claim is successful.