Crypto 'Recovery' Scams in the UK: How Victims Get Targeted Twice

After losing money to crypto fraud, victims are often contacted by 'recovery firms' promising to retrieve their funds — for an upfront fee. These are almost always scams. Practical steps to protect yourself.

What is a recovery scam

A recovery scam targets people who have already lost money to fraud. Criminals pose as recovery specialists, lawyers, regulators, or law enforcement, claiming they can retrieve stolen funds — for a fee. The fee is taken, no recovery occurs, and the victim loses more money. Recovery scams are particularly effective because they exploit the emotional distress and hope of someone who has already been victimised. For background on common crypto scam tactics, see our guide to crypto scams in the UK.

Why recovery scams work

Recovery scammers often obtain victim details from dark web lists, leaked databases, or from the original scammers themselves. They approach at a vulnerable moment with what sounds like a credible solution. The language is professional, the websites look legitimate, and the promise of getting money back is powerful. The FCA warns that legitimate recovery services do not typically charge upfront fees and that consumers should be extremely cautious of unsolicited offers to help recover funds.

Common patterns to recognise

According to FCA guidance on crypto investment scams, recovery scam patterns include: unsolicited contact from someone claiming to represent a law firm, regulator, or exchange; promises that funds can be recovered quickly or guaranteed; requests for upfront fees described as taxes, unlocking payments, or administrative costs; fake admin portals showing your 'recovered' balance (requiring payment to release); impersonation of the FCA, Action Fraud, the police, or known exchanges; and pressure to act quickly before an opportunity closes. None of these are legitimate. Real regulators and law enforcement do not charge fees to help fraud victims.

Immediate steps if you are targeted

If you are contacted by someone offering to recover your crypto, take these steps: stop all payments immediately — do not send any more money, regardless of the reason given; keep all evidence including emails, messages, website URLs, wallet addresses, and transaction records; check the FCA Warning List to see if the firm is already flagged; verify any claimed firm on the FCA Register and compare contact details carefully; contact your bank or exchange if fiat currency is involved; and consider reporting to Action Fraud. Do not engage further with the contact, even to tell them you know it is a scam — this confirms your details are active.

For accountants, solicitors, IFAs and wealth managers

Professional advisers can help clients avoid recovery scams by asking practical questions. Has anyone contacted you about recovering your lost crypto? How did they first contact you — phone, email, social media? Did they ask for any upfront payment, tax, or fee? Have you verified the firm on the FCA Register? Do the contact details match? Have you checked the FCA Warning List? Did they claim to represent the FCA, police, or an exchange? Have you discussed this with anyone else before paying? These are not advice questions — they are practical checks to help clients pause before sending more money. For more on working with clients, see our adviser resources.

Where Bitzo fits

After a fraud incident, clients often feel vulnerable and uncertain. Bitzo provides operational support during this period: helping stabilise security arrangements, documenting remaining holdings, verifying trusted contacts, and creating structured workflows for any recovery process. We also help with inheritance planning so that family members and executors are not exploited during stressful events. Bitzo never asks for seed phrases, private keys, or wallet passwords. We operate on a strictly non-custodial basis — we never hold funds, never request access credentials, and never charge upfront fees for recovery promises. Learn more about how we work or book a call to discuss your situation.

Disclaimer

Bitzo provides operational coordination only. We do not provide financial, legal, or tax advice. The information in this article is for general guidance based on publicly available FCA resources and does not constitute professional advice. If you believe you have been the victim of fraud, seek appropriate professional advice and consider reporting to Action Fraud.