Scam alert · October 21, 2026

You Lost Money to a Scam. Then the “Recovery Expert” Called.

Recovery scammers target people who have already lost money. Learn how the second scam works, what real help looks like, and the rule that prevents another loss.

Read this in five minutes. Then talk about it with someone you care about.

After a scam, a phone call offering hope can feel like the first good news in weeks.

The caller may know what happened. They may know the company name, the amount lost, or the payment method. They claim to be an investigator, attorney, government official, consumer advocate, or specialist who has located your money.

There is just one condition: before the funds can be released, you must pay a retainer, processing charge, tax, bond, administrative fee, or cryptocurrency tracing cost.

This is often not help. It is the second scam.

The Canadian Anti-Fraud Centre says Canadians reported approximately CAD $13.7 million in recovery-fraud losses during the first six months of 2026. It also warns that scammers may impersonate the CAFC itself. In the United States, the Federal Trade Commission issued a 2026 warning that refund and recovery scammers buy information about people who have already lost money and use those details to make a new approach sound credible.

The first loss does not mean someone was careless. The second approach is deliberately aimed at a person who is hurt, searching for answers, and ready to believe that action can undo the damage.

Why this works

Recovery scammers arrive when emotions are still raw. A victim may feel anger, embarrassment, guilt, or an urgent responsibility to replace money needed for retirement, bills, or family.

The new caller offers three things at once: authority, certainty, and hope.

They may provide a case number, use official-looking documents, reference a real agency, or show a tracing report filled with technical language. They may say the money has already been found and that the fee is merely the last legal step before release.

The details can be convincing because information about the first fraud may have been shared, sold, stolen, or retained by the same criminal network. Knowing what happened does not prove that the caller is legitimate.

Warning signs

Treat an unexpected recovery offer as dangerous when:

Someone contacts you first and already knows about your previous loss.
They promise that all or most of the money can be recovered.
They claim to represent the FTC, FBI, SEC, CAFC, police, a law firm, or a financial institution but ask for payment.
You must pay a fee, tax, deposit, commission, bond, or retainer before receiving funds.
They ask for bank details, a Social Security or Social Insurance number, identification documents, passwords, recovery phrases, or cryptocurrency private keys.
They demand payment by cryptocurrency, wire transfer, gift card, payment app, or cash.
They discourage you from calling the agency, your bank, police, or family independently.
They say the opportunity to recover the money will expire if you do not act now.

The most important rule is simple: do not pay money to receive money that someone unexpectedly claims to have recovered for you.

Government agencies and law enforcement do not charge victims a fee to investigate a crime. A person claiming to be from a government agency should never object when you end the call and verify the claim through an official number you find yourself.

The 60-second defense

When a recovery offer arrives:

Stop the conversation. Do not confirm how much you lost or supply additional details.
Do not pay or share financial information. A fee with a reassuring name is still an upfront payment.
Preserve the contact. Save the message, email address, phone number, website, documents, and payment instructions.
Verify independently. Find the agency or organization through its official government website. Do not use the caller's link, number, or caller ID.
Call someone you trust. Hope can create urgency just as effectively as fear. A second person can help slow the decision.

Be cautious with online advertisements for private recovery services, especially those guaranteeing results. Cryptocurrency transactions can sometimes be traced, but a tracing report is not the same as recovering funds. No private company can guarantee that law enforcement, a bank, an exchange, or a court will return money.

If you already paid the recovery caller

Contact the bank, card issuer, payment app, wire service, or cryptocurrency exchange immediately. Explain that the payment was connected to fraud and ask what options may still be available. Preserve every record from both the original scam and the recovery approach.

In Canada, report to local police and the Canadian Anti-Fraud Centre. In the United States, report to the FTC at ReportFraud.ftc.gov and, when appropriate, the FBI Internet Crime Complaint Center at IC3.gov. If the caller impersonated a regulator or law-enforcement agency, report that impersonation directly to the real organization as well.

Real reporting channels may not promise recovery. That honesty can feel disappointing, but it is safer than a stranger offering certainty for a fee.

Talk about it tonight

Ask your family: “If someone called tomorrow and said they had recovered money we lost, what would we require before believing them?”

Agree on the answer: no upfront payment, no sensitive information, and no action until the organization is verified through contact information found independently.

If a recovery message or document arrives, use The Scam Hotline Scam Detector to examine its pressure tactics. Remove names, case numbers, account details, identification numbers, wallet information, and other sensitive data before using any online tool.