Guide
“Crypto recovery” services: the second scam
After the first scam comes the offer to undo it. It is almost always the same people, or people just like them.
After a crypto scam, victims are often contacted by “recovery” firms, “hackers”, “lawyers” or people posing as government officials who promise to get the money back for a fee. The FTC and the FBI warn that these offers are scams. Nobody can guarantee to recover crypto, and government agencies never charge you to get money back.
Checked and updated by Byte Federal’s fraud-prevention team. How we check facts.
How the recovery scam works
It comes days or months after the first loss, when people are desperate and ashamed. The approach takes a few familiar forms:
- A “recovery firm” or “crypto forensics” company with a professional website, glowing reviews and ads that appear when you search for help. It says it has traced your coins and needs a fee to start.
- A “lawyer” or “law firm” that knows the details of your case and says it is working with a government agency, or has a court order to release your funds.
- A fake government official, from the FBI, the FTC or a “fraud recovery unit”, who says your money has been found and must be released by paying taxes or fees first.
- A “hacker” on social media who can “hack back” the scammer’s wallet for a percentage.
They often know exactly how much you lost and where. Victims’ details get passed around among scammers, and many people describe their loss in reviews, forums or social media posts, where recovery scammers look for them.
What the agencies say
“If someone calls and offers to “help” you recover money you have already lost: Don’t give them money or personal information. You’re probably dealing with a fake refund scam.”
Federal Trade Commission, ReportFraud.ftc.gov FAQs
“Recovery scheme fraudsters charge an up-front fee and either cease communication with the victim after receiving an initial deposit or produce an incomplete or inaccurate tracing report and request additional fees to recover funds. Fraudsters may claim affiliation with law enforcement or legal services to appear legitimate.”
“IC3 does not maintain a social media presence and does not investigate crimes or recover funds through Facebook, Telegram, or similar platforms. Any social media profiles or pages claiming to represent IC3 or offering to recover lost money are fraudulent and are actively attempting to steal your personal or financial information.”
What actually helps
- Report the original scam to the police, the FTC and the FBI. If law enforcement ever recovers money, reports are how they find the victims. See where to report.
- Report the recovery offer too. It is a separate crime, and the details (names, websites, wallet addresses) help investigators.
- If you want a lawyer, choose one yourself through your state bar association, and check the license.
- Screen unknown calls. Recovery scammers reach people who have already lost money by phone, email and social media. How to stop scam calls.
- Talk to someone. Being scammed twice is common and nothing to be ashamed of. If you are 60 or older, the National Elder Fraud Hotline can help you report.
This site does not offer, recommend or refer anyone to recovery services, and it never will. Byte Federal, which publishes it, cannot reverse a crypto transaction.
Questions people ask
Is there any legitimate way to get crypto back?
Sometimes law enforcement traces and seizes stolen crypto, and victims can be paid back through an official process. That is why reporting to the police, the FTC and the FBI matters. Government agencies don’t charge victims a fee for this, and they don’t ask to be paid in crypto.
A company says it traced my bitcoin with “blockchain forensics”. Is that real?
Following crypto on a public blockchain is real, and law enforcement does it. A company that contacted you first, or that wants a fee before it returns anything, is the warning sign. Tracing a payment is not the same as being able to get it back.
Someone from “the FBI” or “the FTC” called about my case. What do I do?
Hang up and call the agency yourself on a number from its official website. Agencies don’t call to ask victims for fees, and they never ask for payment in crypto, gift cards or by wire.
Should I hire a lawyer?
You can, but find one yourself, through your state bar association’s lawyer referral service, and check the lawyer’s license on the state bar’s website. Don’t answer ads or messages from “law firms” that found you.
Sources for this page
- FTC: Refund and recovery scams (December 2023) · Scammers target people who already lost money, promising to get it back if they pay first.
- FTC: ReportFraud.ftc.gov frequently asked questions · Getting crypto back is very difficult; ask the company to reverse it; anyone offering to “help” recover money is probably a fake refund scam.
- FBI public service announcement: Companies falsely claiming an ability to recover funds (Aug 11, 2023) · Recovery fraudsters charge an up-front fee, produce a fake tracing report and claim ties to law enforcement.
- FBI public service announcement: Fictitious law firms targeting cryptocurrency scam victims (Aug 13, 2025) · Fake law firms target the elderly and falsely claim ties to government agencies.
- FBI public service announcement: Scammers impersonating the IC3 (July 20, 2026) · The IC3 does not recover funds through social media; profiles offering to recover money are fraudulent.
- FinCEN Alert FIN-2026-Alert005: Digital asset investment scam centers (Sept 3, 2026) · Most victim payments to scam centers start at money services businesses, including digital asset kiosks.
- FBI Internet Crime Complaint Center: 2025 Internet Crime Report (crypto ATMs/kiosks, p. 53) · 13,460 crypto ATM complaints and $389 million lost in 2025; $257 million of it by people 60 and over. Call center fraud (tech support and government impersonation): more than 80,000 complaints and over $2.9 billion lost.
Every source was opened and checked on November 8, 2026. Laws and agency figures change; if you find something out of date, write to hello@cryptoatmscam.com and we will correct it.
Cite this page
Crypto ATM Scam Help. ““Crypto recovery” services: the second scam.” Updated November 8, 2026. https://cryptoatmscam.com/guides/recovery-scams/