Crypto Funds Recovery Scams: A Second Blow for Victims
Lost Crypto? Don’t Fall for Recovery Lies
tl;dr
If you’ve lost money in a crypto scam, beware of anyone offering to get it back for you. “Funds Recovery” services are just another scam designed to squeeze more money from victims. No company or individual can recover stolen crypto, lost passwords, or wallet seed phrases.
People who lose money to cryptocurrency scams are often targeted a second time by so-called “funds recovery” services. These sites and companies claim they can recover stolen cryptocurrency or assist victims in regaining access to lost wallets. In reality, they are simply another layer of fraud.
How the Scam Works
The operators of these recovery schemes typically contact victims directly or advertise heavily online, offering to recover stolen or inaccessible crypto. They often present themselves as professional investigators, blockchain experts, or even legal specialists.
Once a victim engages, the scammers may pretend to have already traced or retrieved their lost funds. They then demand a series of upfront payments to “release” the money. These payments are often disguised as administrative fees, taxes, or verification charges.
Of course, no funds have been recovered. The scammers simply exploit the victim’s desperation, drawing out as much money as possible before disappearing.
Why Recovery Claims Are False
Cryptocurrency operates on decentralised networks. Once funds have been stolen or transferred out of a wallet, there is no central authority with the power to reverse the transaction.
Similarly, lost passwords and wallet seed phrases cannot be retrieved by any third party. If someone claims they can recover these for you, they are lying.
Red Flags to Watch For
Unsolicited contact from people or companies claiming they can recover your funds.
Requests for upfront payments disguised as taxes, legal fees, or processing charges.
Guarantees of success, since legitimate recovery is virtually impossible.
Pressure tactics, urging you to act quickly before the opportunity disappears.
Protecting Yourself
If you have lost money to a cryptocurrency scam, the best course of action is to report the crime to the relevant authorities in your country. While recovery is unlikely, filing a report may help law enforcement track and disrupt the scammers.
Never send money to anyone who promises to recover stolen cryptocurrency. By doing so, you risk compounding your losses.