Losing money to a scam is devastating enough. But for many victims, the damage doesn't end with the initial fraud.
The Federal Trade Commission says a follow-up scam is increasingly targeting people who have already been victimized, with fraudsters offering to recover lost funds to steal even more money.
Here's what to know
Criminals behind recovery scams often focus on people who have already been defrauded, as Saving Advice reported. In some cases, scammers may be working from victim lists that include names, contact details, and details about the original scam and how much money was lost.
That background can make an unexpected phone call, text, or email seem credible right away. The person contacting you may try to seem legitimate by falsely claiming to be a lawyer, investigator, consumer advocate, or government official saying your lost money has been found.
The trap is the request that follows. The scammer wants payment upfront, often calling it a retainer, tax, legal cost, or "processing fee," and promises that a much larger sum will be released after that fee is paid.
The FTC's guidance is clear, per Saving Advice: "Don't pay someone who unexpectedly contacts you and promises to recover scam losses for an upfront fee."
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More background
Part of what makes this fraud so damaging is its timing. Someone who has already lost thousands of dollars may be especially likely to trust what sounds like a rescue offer, particularly when the scammer appears to know private details about the original theft.
The risk can be even greater in cryptocurrency-related cases. The FBI has warned that fake law firms and bogus recovery companies have been targeting crypto scam victims, often claiming they have special tools that can trace digital assets across wallets.
Between February 2023 and February 2024, people approached by fictitious law firms reported over $9.9 million in extra losses, according to figures cited by Saving Advice from the FBI's Internet Crime Complaint Center.
The larger fraud picture is staggering. As Saving Advice noted from FTC data, fraud cost consumers around $16 billion in 2025, and imposter scams made up roughly $3.5 billion of that total.
What can be done?
After any scam, victims should move quickly through legitimate channels, rather than strangers promising an easy fix. Victims should contact their bank, credit card issuer, payment app, gift card company, or wire transfer provider right away to ask whether a transaction can be reversed.
Victims should also change compromised passwords, secure financial accounts, save messages and receipts, and report the original scam. For internet-based crimes, especially crypto fraud, Saving Advice noted that the FBI tells victims to submit a detailed report to its Internet Crime Complaint Center.
People should slow down before sending any additional money. Requests for payment through crypto, gift cards, wire transfers, cash, or payment apps are, as Saving Advice summarized from FTC guidance, major red flags. Saving Advice also shared an infographic with commonly-seen warning signs — one of which is when scammers create a sense of urgency, pressuring victims to "act fast."
If someone claims to represent a government agency, that claim should be verified independently. The FTC has warned that imposters may even send fake badges or employee IDs, but, as Saving Advice noted from FTC guidance, real FTC employees do not use texts or messaging apps to demand payment for help recovering losses.
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