A recovery scam targets people who have already lost money, usually in an investment scamInvestment scamA scam that promises big, safe returns on an investment, often in crypto, while the scammers simply take the money paid in. or a romance scamRomance scamA scam where someone builds an online romance, often over months, to get the victim to send money or crypto.. The scammer offers to get the money back for a fee. In reality it is the next round of the same fraud, and sometimes it is the same scammers getting in touch.
How does it work?
Details of scam victims are bought and sold between criminals. Soon after the loss, someone gets in touch by phone, email or social media. Typically the scammer:
- introduces themselves as a lawyer, an investigator or someone from the police, a regulator or an international organisation
- claims to have found your money and to be able to get it released
- demands a fee, a tax or an "administration charge" upfront
- asks for access to your computer, for example through AnyDesk, or for your seed phraseSeed phraseA list of 12 or 24 words that backs up every key in your wallet, so whoever has the words can restore the wallet and take the crypto.
The FBI has warned about fake law firms that offer to recover money for victims of crypto scams and demand payment upfront. Victims who reported to the FBI lost more than 9.9 million dollars in a single year. The capital area police in Iceland have also warned that scammers call people back and offer to "help with recovery".
How do you spot one?
- They contact you out of the blue.
- You are promised that the money will be recovered.
- Payment is demanded before anything happens.
- You are told to keep it secret, or that time is running out.
What can you do?
The police don't charge for investigating a case, and nobody can reverse a transaction on a BlockchainBlockchainA public ledger where transactions are grouped into blocks, each linked to the one before, so past records can't be altered without it showing.. If you have been scammed, contact your bank and report it to the police through Ísland.is. There is no shame in being scammed, but paying for "recovery" never pays off.
Everything in Myntkaup Learn is written and regularly reviewed by the Myntkaup editorial team. It is for education and is not investment advice. Editorial policy. Updated 2 November 2026.