The short answer
If you lost money to a trading scam and someone contacts you offering to get it back for a fee, treat it as a second scam. Australia’s regulator ASIC puts it plainly: if you have been scammed and someone contacts you offering to help recover money, it is a scam.
The free, real routes are:
- your bank or card provider, as fast as possible
- the official fraud reporting service where you live (in India, 1930 and cybercrime.gov.in)
- the regulator, if the firm claimed to be licensed
First, if you are reading this after a loss: this happens to careful, intelligent people. Scammers are skilled at this. Feeling ashamed is normal, and it is also what the second scammer is counting on. You are not alone, and there are real people who can help for free.
Why victims get targeted twice
Recovery scams work because they arrive at the worst moment. You have lost money. You want it back. You may be hiding it from family. A message offering hope feels like a rescue.
What official sources say about how this happens:
- The same people, again. The UK’s FCA says recovery rooms often follow an investment scam, and the people behind the original scam may run the recovery room too. That is how they know your name, the amount, and the fake platform’s name.
- They pretend to be victims. ASIC says scammers often pretend to be a scam victim themselves, saying a particular “firm” helped them get money back, through fake reviews or direct messages.
- They pretend to be officials. ASIC says they impersonate government agencies, claiming you must pay taxes or fees to “retrieve” or “release” funds. The FTC says scammers often claim to be from a government agency or another organisation.
The tricks they use
| What they say | What is really happening |
|---|---|
| “We are lawyers / a recovery agency / a cyber unit” | Professional-looking website, but not who they say they are |
| “We found your money. Pay a small fee to release it” | The fee is the scam. The FCA lists “tax, solicitor or administrative fees” |
| “We work with the regulator / police” | Real regulators and police don’t charge you to help |
| “Our success rate is 98%” | Invented. No honest service can promise to recover scam losses |
| “Pay in crypto or gift cards” | The FTC says anyone who insists on these payment methods is a scammer |
| “Your trading account has grown. Pay tax to withdraw” | The fake platform comes back with a new story |
| “Don’t tell your bank, it will slow things down” | They want to stop the one route that might really work |
Australia’s Moneysmart site also lists offers to swap your investment for another one, telling you to “hang in there”, and fees called a “deposit”, “retainer” or “refundable insurance bond” as follow-up scam strategies.
A real-looking example (fictional)
A fictional story. Riya lost money on a “gold trading app” that stopped paying out. She posted about it in a group. Two days later she got a polite message from “Adv. Mehta, Cyber Asset Recovery Cell”: they had “traced the funds” to a wallet and could freeze it. They sent a smart PDF with her real deposit amounts and the app’s name.
They asked for a “processing fee” paid in crypto, then a “court filing fee”, then a “tax clearance” before the “release”. Each payment was followed by a new reason to pay. The “cell” did not exist. The app’s operators had simply come back under a new name.
What would have stopped it: one call to the official helpline, using a number she found herself, not one from the message.
What official sources say (checked 5 November 2026)
- UK, FCA (recovery room scams): recovery rooms target people who have been scammed or had failed investments; they insist on a fee before doing anything; contact is often cold calls with high pressure, and web-based email addresses. If you are asked to pay a fee or give bank or card details, the FCA says to end all contact. Report to the FCA (0800 111 6768) and to Report Fraud (reportfraud.police.uk).
- US, FTC (refund and recovery scams): “Never pay upfront for a refund or help with a refund.” Government agencies and legitimate organisations will never ask for money to help you get a refund, won’t ask for your account numbers, and won’t guarantee you’ll get money back. Report at ReportFraud.ftc.gov.
- Australia, ASIC (alert, 11 October 2021): if you have been scammed and someone contacts you offering to help recover money, it is a scam. Hang up, delete or ignore. ASIC also says it cannot help get money back, and once money has left Australia it is hard to recover.
- Australia, Moneysmart (what to do if you’ve been scammed, updated 13 August 2026): don’t send more money, block the scammer, contact your bank, report to Scamwatch, and watch out for follow-up scams.
- India, National Cyber Crime Reporting Portal: any victim of financial cyber fraud can dial 1930, and complaints can be filed at cybercrime.gov.in. Our India step-by-step page has the full official route, including RBI Sachet.
The 12-point recovery-scam checklist
Print it or keep it on your phone. If any one box is ticked, stop.
- ☐ 1. They contacted me first (call, DM, email, comment) after my loss.
- ☐ 2. They want a fee before doing anything.
- ☐ 3. The fee is called a tax, release fee, court fee, insurance or deposit.
- ☐ 4. They want payment in crypto, gift cards, a payment app or to a person’s account.
- ☐ 5. They guarantee to get my money back, or quote a success rate.
- ☐ 6. They say they are a regulator, police, court or government unit, but contacted me by WhatsApp, Telegram or a free email address.
- ☐ 7. They told me not to tell my bank or family.
- ☐ 8. They know details of my loss but I never gave them those details.
- ☐ 9. The “testimonials” are from people I can’t check, or victims who “got everything back”.
- ☐ 10. They push me to decide today.
- ☐ 11. They ask for remote access to my phone or computer, or my banking passwords or OTPs.
- ☐ 12. They offer to swap my lost investment for a “better” one.
What actually helps (all free)
- Stop sending money. To anyone. Block the scammers.
- Call your bank or card provider now. Ask them to stop any transactions and what else they can do. Moneysmart and ASIC both put this step first. Card payments and transfers sometimes can be stopped or disputed if you act fast. Crypto is usually much harder.
- Report it to the official service where you live: - India: call 1930, file at cybercrime.gov.in, and report the platform on RBI Sachet. - UK: the FCA (0800 111 6768) and Report Fraud. - US: ReportFraud.ftc.gov. - Australia: Scamwatch, the police, and ReportCyber.
- Find official numbers yourself, from the official website, never from a message you were sent. The FTC gives this same advice.
- Save everything: chats, payment receipts, wallet addresses, website addresses, screenshots. Our India guide lists what to save.
- Secure your accounts. Change passwords, turn on two-step login, and never share OTPs.
- If the firm claimed a licence, check the regulator’s own register (how to check a broker’s licence). A regulated firm may have a complaints route and an ombudsman; a clone firm won’t.
Looking after yourself
Losing money, and then being targeted again, can hit hard: sleep, mood, relationships. Please talk to someone you trust. If you feel overwhelmed, reach out for support:
- UK: Samaritans, free, any time, on 116 123.
- Australia: Lifeline on 13 11 14 (listed by ASIC and Moneysmart).
- Anywhere: your local health service or a trusted doctor.
If the loss came from trading you can’t stop, that is worth talking about too. And when you’re ready, our page on why most retail traders lose money and is trading real or a scam? can help you see what happened without blaming yourself.
Sources
- FCA, Recovery room scams (last updated 19 January 2026; read 5 November 2026)
- FTC, Refund and recovery scams (December 2023; read 5 November 2026)
- ASIC, Alert: “Follow up” scams, offers to help recover lost funds (11 October 2021; read 5 November 2026)
- Moneysmart (ASIC), What to do if you’ve been scammed (updated 13 August 2026; read 5 November 2026)
- National Cyber Crime Reporting Portal (Ministry of Home Affairs, India): cybercrime.gov.in, helpline 1930, as checked for our wave of India pages on 5 November 2026
- Samaritans: Contact a Samaritan (116 123; read 5 November 2026)
- The story of “Riya” is fictional, written to show a common pattern.
Educational content only, not legal advice. If you are in danger or crisis, contact your local emergency services.
Frequently asked questions
Are fund recovery services a scam?
Offers that contact you out of the blue, promise to recover money lost to a scam, and ask for a fee first are a well-known follow-up scam. Australia’s regulator ASIC says that if you have been scammed and someone contacts you offering to help recover money, it is a scam.
Do regulators or the police charge a fee to get my money back?
No. The US Federal Trade Commission says government agencies and legitimate organisations will never ask for money to help you get a refund. The UK’s FCA says recovery rooms insist on a fee before doing anything, often called a tax, solicitor or administrative fee.
How did the recovery scammer know about my loss?
Regulators say the people behind the first scam may run the recovery scam too, so they already have your details. Victims’ details can also be passed on or found from public posts and complaint sites.
What should I do if I already paid a recovery company?
Stop paying, block contact, and tell your bank or card provider straight away. Report it to the official fraud reporting service in your country, for example 1930 and cybercrime.gov.in in India, Report Fraud in the UK, ReportFraud.ftc.gov in the US, or Scamwatch and ReportCyber in Australia.
Can I really get money back after a trading scam?
Sometimes a bank can stop or reverse a payment if you act fast, especially for card payments and transfers. Crypto payments are usually much harder. Regulators say money sent overseas is hard to recover. No honest service can promise to get it back.
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