If you've already lost money to a crypto scam, you're at risk of being targeted again — this time by "recovery" scammers who promise to get your money back. Recovery scams are growing rapidly because scammer networks actively sell lists of previous victims to other criminals.
How It Works
Step 1: They Find You
After losing money to a scam, you may post about it online, report it to an agency, or simply search for help. Recovery scammers monitor scam forums, social media, and even government complaint databases. They may also contact you directly if the original scammers sold your details.
Step 2: The Pitch
They contact you (or you find their website) claiming to be a "crypto recovery specialist", "blockchain investigator", "forensic analyst", or even a "law firm" specialising in crypto recovery. They may have professional-looking websites with fake testimonials.
Step 3: The Fees
They claim they can trace and recover your stolen funds — but you need to pay an upfront fee for "investigation costs", "legal fees", "blockchain analysis", or "processing charges." These fees range from hundreds to thousands of dollars.
Step 4: Nothing Happens
After paying, they either disappear, claim the recovery is "in progress" and request more fees, or deliver a worthless report with no actual recovery.
Red Flags
Anyone who guarantees they can recover your crypto — legitimate investigators never guarantee recovery
Upfront fees before any work is done
They contacted you first (via email, social media, or phone)
They claim to have "special tools" or "government access" to reverse blockchain transactions
Comments on Reddit, Facebook, or Twitter saying "I was scammed too but [name] recovered my funds!"
They ask for remote access to your computer or exchange account
They want payment in crypto (legitimate law firms don't typically accept crypto)
The Truth About Crypto Recovery
Cryptocurrency transactions are irreversible — once sent, they cannot be "reversed" by anyone
Legitimate blockchain forensics firms (like Chainalysis) work with law enforcement, not individuals, and never guarantee recovery
The only entity that can freeze crypto funds is a law enforcement agency working with an exchange — and this requires a legal process, not an upfront fee from you
If your funds were sent to a scammer's wallet, recovery depends entirely on whether law enforcement can identify and freeze the destination before the funds are moved
What You Should Actually Do
Report to the police via ReportCyber
Report to Scamwatch at scamwatch.gov.au
Contact Coinstash Support — if funds were sent from your Coinstash account, we may be able to assist with information for law enforcement
Contact IDCARE (idcare.org) if your identity was compromised
Do not engage with anyone promising recovery for a fee