Recovery scams explained: How fraudsters target businesses after fraud

For many small business owners, the first scam is only the beginning. After a fake invoice payment, a hacked email conversation, a ransomware demand, or a fraudulent transfer, the immediate focus is, rightly, on damage control: calling the bank, checking and securing accounts, trying to understand what went wrong.

Then something unexpected can happen: someone reaches out claiming they can help recover the lost money.

For many victims, this is when the second scam begins.

Key takeaways:

• Recovery scams are also known as fund recovery scams, refund scams, or asset recovery scams.
• Recovery scams target people who have already lost money to fraud.
• Upfront fees and guaranteed recovery promises are major warning signs. 
• The FBI has issued alerts about fake law firms contacting cryptocurrency scam victims and promising to recover funds, only to demand additional payments.
• Prevention is the best protection. Security tools that detect phishing emails, malicious links, and scam messages early can help stop both the initial scam and follow-up fraud.

What is a recovery or refund scam?

A recovery scam is a fraud where criminals promise to recover money lost to a scam but instead ask victims for another payment.

This scam specifically targets people and businesses that have already been defrauded. For a small business owner trying to protect their company’s finances, the idea that the lost money might be recovered can feel like a rare piece of good news.

That hope is exactly what scammers exploit.

How do recovery scams work?

Recovery scammers find victims in several ways. They monitor social media posts, complaint forums, and review sites where people share their experiences. They may also obtain contact details from data leaks, previous scams, or lists of victims sold on criminal forums.

Once they identify a target, they contact the victim offering help. They claim they can track the scammers, reverse the transaction, or recover the lost funds. All they need is a fee to start the process.

Once the payment is made, one of two things usually happens. The scammers disappear, or they continue asking for more money, claiming that additional legal steps, administrative costs, or investigation fees are required.

By the time victims realize what happened, they have lost money again.

Different recovery scam scenarios, same promise: “We can get your money back.”

Recovery scams appear in many forms and keep evolving, but certain patterns appear again and again. Some of the most common include:

• “Fund recovery specialists.”

People who claim they can recover money lost to scams by tracing bank transfers, reversing payments, or negotiating with financial institutions.

• Cryptocurrency recovery experts.

Because many scams involve crypto, fraudsters claim they can trace blockchain transactions and retrieve stolen funds, often using technical language to sound credible.

• Fake support teams from well-known platforms.

Some scammers pretend to be support representatives from trusted platforms such as accounting software, payment processors, banks, or online marketplaces. They may claim they detected suspicious activity and can help recover lost funds if you follow their instructions or pay a fee.

Related: Small business owners lose $95,000 after a “QuickBooks support” callback scam

• Fake government investigators.

Victims receive messages from people pretending to represent financial regulators, cybercrime agencies, or other authorities who say they can recover funds for an administrative fee.

• Legal recovery services.

Some scammers pose as lawyers or legal consultants who promise to file lawsuits or recovery actions against the fraudsters.

• “Hack-back” services.

Others claim they can hack the scammers’ systems and retrieve the stolen money.

Warning signs of a recovery scam

If someone contacts you claiming they can recover money lost in a scam, slow down and look for warning signs. Many recovery scams follow similar patterns. Seeing even one of these should make you cautious.

• They contact you out of the blue. Calls, emails, or messages come from people or companies you have never contacted.

• They ask for an upfront fee. Sometimes the first fee is small, but more “administrative costs,” “legal fees,” or “processing charges” quickly follow. Requests for cryptocurrency, gift cards, or international transfers are strong red flags.

• They already know details about the scam you experienced. This can happen if scammers monitor public complaints or buy lists of victims from other criminals.

• They give strange explanations for the fees. They may say the money cannot be deducted from the recovered funds and instead call the payment a “donation,” “tax,” or “processing fee.”

• They promise guaranteed results. No one can guarantee that stolen money will be recovered.

• They pressure you to act quickly. Scammers may say the funds will disappear unless you pay immediately or take urgent action.

• They ask you to communicate through messaging apps. Some recovery scammers prefer Telegram, WhatsApp, or other apps instead of normal business communication channels.

• Their contact details are hard to verify. The company may not list a real office address, or the address doesn’t appear to belong to a legitimate business.

• They ask for your bank account details. Fraudsters may claim they need them to “deposit the recovered funds.”

Related: How Scammers Trick You into Compromising Your Own Security—and How to Stop Them

How to protect your business from recovery scams

If your business has been targeted by fraud, the first hours matter.  Contact your bank or payment provider immediately and explain the situation. In some cases, they may still be able to block or trace transactions if the fraud is reported quickly. You should also report the incident to the relevant cybercrime authorities in your country, as these reports help investigators identify patterns and warn other businesses. At the same time, secure your systems by changing passwords, reviewing access permissions, and checking whether email accounts or financial platforms have been compromised.

After the immediate crisis is handled, stay alert for follow-up scams:

• Be cautious with unsolicited recovery offers. If someone contacts you claiming they can recover lost funds, especially out of the blue, treat the offer with skepticism.

• Watch for people claiming to represent trusted platforms. Scammers may pretend to be support teams from banks, accounting software, payment processors, or other services your business uses.

• Avoid sharing detailed information about the incident publicly. Posts on social media or complaint forums can attract recovery scammers looking for new victims.

• Verify any company offering recovery services. Check official registration details, independent reviews, and legitimate contact information before trusting any service.

Related: How Hackers Use AI to Target Small Businesses. What Helps When You Have No IT Team

Many scams, including recovery scams, start with a phishing email, a malicious link, or a fake message pretending to come from a trusted service.

Bitdefender Ultimate Small Business Security helps detect these threats early and block them before you or your team interact with them. It includes scam detection, phishing protection, and fraud monitoring features designed to stop attacks at the entry point, reducing the risk of both the initial scam and follow-up recovery fraud.

Try Bitdefender Ultimate Small Business Security for free for 30 days.

FAQs

What is a recovery scam?

A recovery scam happens when criminals contact victims of fraud and promise to recover lost money in exchange for a fee. In reality, the service is fake and designed to steal even more money.

Can money really be recovered after a scam?

Sometimes banks or payment providers may attempt to trace or freeze funds if the fraud is reported quickly. However, recovery is never guaranteed.

How do recovery scammers find their victims?

Recovery scammers often monitor social media posts, complaint websites, and data leaks to identify people who have recently reported losing money to scams.

Are there any legitimate fund recovery services?

Some legitimate organizations may assist with fraud investigations, but they typically include banks, payment providers, law enforcement agencies, or regulated legal professionals. These entities do not guarantee that stolen funds will be recovered and rarely ask for upfront fees. Be cautious of private “fund recovery” companies that contact you unexpectedly and promise guaranteed results.