A fund recovery scam is when criminals contact people who have already lost money and offer to get it back, usually for an upfront fee. They may pretend to be lawyers, investigators, police, regulators or "blockchain experts". Paying them almost always means losing more money. Genuine help, such as complaining to your bank or the Financial Ombudsman, is free.
How do recovery scams work?
The Financial Conduct Authority (FCA) calls these recovery room scams. It says they usually follow an investment scam or other loss. The people behind the first scam may run the recovery scam themselves, pretending to be a different company, or sell your details to other criminals.
They might:
- call, email or message you out of the blue
- find you after you post about your loss online or search for help
- advertise on social media or search engines
- build professional-looking websites with fake reviews and success stories
- claim to work with the government, police, the FCA or another regulator
What are the warning signs?
Be very wary if someone:
- contacts you first about money you have lost
- already knows details of your loss, and cannot explain how
- asks for a fee up front, called a tax, legal fee, admin charge, release fee or "gas" fee
- promises or guarantees to get your money back
- pressures you to act quickly
- asks for remote access to your computer or phone
- asks for your seed phrase, private key, passwords or bank details
- uses a webmail address such as Gmail, Yahoo or Hotmail
The FCA says it never uses webmail to contact consumers, and neither does the government, law enforcement or law firms.
Can a company really trace my money?
Be sceptical. The FCA says that when people report fraud, the information can only be shared between law enforcement agencies. It cannot be shared with a private business running a recovery service. So if a caller says "we have your file from the police", that is a red flag.
Some genuine firms and lawyers do work on fraud cases, but none can guarantee results. In the UK, companies offering to make claims for you usually need to be authorised by the FCA. You can check on the FCA Firm Checker. Scammers also copy the names and details of real firms, so only contact a firm using the details shown on the Firm Checker.
What free help is genuinely available?
You do not need to pay anyone to:
- report the crime to Report Fraud (0300 123 2040) or Police Scotland (101)
- ask your bank for a refund. See getting your money back after an APP scam
- complain to your bank or the Financial Ombudsman, which says you do not need to pay a lawyer or claims company
- get advice from Citizens Advice on 0808 223 1133
We are a free, independent support service. We are not the police, Report Fraud, the FCA or a government body, and we never ask you to pay to recover funds. You can get help from us here.
What should I do if I have been contacted by a recovery scammer?
- Stop contact. Do not pay, and do not share bank, card or crypto details.
- Do not install anything they ask you to, and do not let them access your device.
- Report it to the FCA on 0800 111 6768 and to Report Fraud.
- Save the evidence: messages, phone numbers, website addresses.
What if I have already paid a recovery company?
Do not pay anything more, even if they say one last fee will release your money. Contact your bank straight away. If you paid by UK bank transfer on or after 7 October 2024, the payment may be covered by the APP reimbursement rules. Then report it, and secure your accounts using our guide to protecting your accounts.
If you lost cryptocurrency and someone now says your "USDT" or "USDC" is stuck and needs a fee to release it, read crypto scam: what to do next and check our counterfeit stablecoin register.
Frequently asked questions
Is every recovery company a scam?
Not every one, but many are. Be very cautious of anyone who contacts you first, asks for money up front or guarantees results. Check FCA authorisation and use free routes first.
Someone says they are from the police and can return my money for a fee. Is this real?
No. The police will not ask you to pay to get money back. Hang up and report it.
They say the fee is a tax that must be paid before release. Should I pay?
No. Demands for taxes, release fees or withdrawal fees before you can get money back are a classic sign of a scam.
How did they get my details?
The FCA says the people behind the first scam may sell your details to others, or come back themselves. That is why being contacted right after a loss is such a strong warning sign.