Beware of Recovery Scams Targeting Previous Victims Promising Fake Legal Help

TrainMyParent.com
Mar 17
5 min read

Eye-level view of a legal document and a fake lawyer's business card on a desk — Imposter lawyers attempt to help you recover your previously-stolen funds.

When someone falls victim to a scam, the emotional and financial toll can be devastating. Unfortunately, the danger does not always end there. A new wave of fraud has emerged, targeting those who have already suffered losses. This scam, known as the recovery scam, tricks victims by pretending to offer legal help to recover money stolen in the original scam. The person posing as a lawyer promises to get back what was lost, but in reality, they are scammers themselves. Understanding how this scam works and how to protect yourself is crucial.

What is a Recovery Scam? A recovery scam targets people who have already been scammed. The fraudster contacts the victim, often by phone, email, or social media, claiming to be a lawyer, government official, or recovery agent. They say they can help recover the money lost in the original scam, but there is a catch: the victim must pay upfront fees or provide sensitive personal information.

The scammer uses convincing language, a sense of urgency, and fake credentials to build trust. They may even use a real lawyer's name, or reference details from the original scam in order to appear like they legitimately trying to help the victim. Like pouring salt on a wound, the goal is to yet again get the victim to send money or share bank details, which the recovery scammer then uses to steal more funds.

How Recovery Scams Work: Recovery scams often follow a similar pattern. First, there is an initial contact in which the new scammer reaches out unexpectedly, offering help to recover lost money because the crime ring that stole the original funds was broken up, and a large amount of cash was recovered by the authorities, who want to return what they can to the victims. The identity of the victim can be obtained from other scammers who were successful in finding a willing mark...if the victim fell for a scam the first time, they might not have learned their lesson and will fall for another one. Someone who lost hundreds of thousands of dollars in the initial fraud might be willing to spend ten thousand dollars or more to get some of the funds back. This is a highly-targeted, high reward scam.

Once they have the victim in their sights, they start building trust. They provide fake documents, websites, or phone numbers to appear credible. They may even be using the name of a real lawyer, so if you research them via the state bar or a web search, you will find legitimate results. Some even setup fake recovery legal websites that look professional but are indeed a ruse.

Then comes the request for a retainer to cover legal fees or other costs, which is not uncommon when working with a law firm. Unfortunately any money that is forked over is now gone. But, the ruse continues as the delay tactics start. The recovery scammers often ask for additional fees, citing court costs, burning through the retainer, unexpected steps they need to take, or other reasons for the victim to send more money and wait.

A call center showing three workers. — Scammers come in all shapes and sizes...

At some point, once the victim realizes that something is not right, or they refuse to send additional funds, the recovery scammers disappear with all of the victims funds, again.

For example, a victim who lost money in an online investment scam might receive a call from someone claiming to be a lawyer. The caller says they have located the stolen funds but need a “processing fee” to release them. After paying, the victim hears excuses and requests for more money, but no funds ever return.

Recovery scams are dangerous because they prey on hope and desperation. Victims want to believe they can get their money back, so they may overlook warning signs. This makes recovery scams especially harmful for several reasons. First, They cause additional financial loss on top of the original scam. They also can lead to identity theft if personal information is shared with the scammers. In addition, victims may lose trust in the legal system after being deceived.

How to spot recovery scams: Knowing the warning signs can help you avoid falling victim again. Watch out for these red flags:

Unsolicited contact from someone claiming to be a lawyer or official.
Requests for upfront fees before any service is provided.
Pressure to act quickly or keep the matter secret.
Lack of verifiable credentials or official contact information.
Requests for sensitive information like bank account numbers or social security numbers.
Promises that sound too good to be true, such as guaranteed recovery of all lost funds.

How to protect yourself: If you have been scammed before, take these steps to protect yourself from recovery scams. First, think twice about whether this could be a ruse. Someone who reaches out with unsolicited help should always be treated as skeptical. However, if you think you might want to proceed, you should definitely follow these recommendations:

Verify credentials: Check the identity of anyone claiming to be a lawyer or official. Contact your local bar association or government agency for contact information, and reach out to them directly and not via the phone number or email provided by the scammer.
Never pay upfront fees without a clear, written agreement. Many fund recovery law firms work on contingency payment, meaning they take a slice of what they recover after the recovery is done.
Avoid sharing personal or financial information with unknown contacts. If they are legitimate, they do not need to know your bank account information. If successful, they would send you a certified check from an escrow account if they recover money for you.
Consult trusted sources: Talk to a real lawyer or consumer protection agency before taking any action. Most of these scams operate overseas in countries that have no real mechanism for penalizing or preventing scam artists from targeting you. So, if you were scammed in the past, there is very little chance of recovering any money. It is gone the moment you send them Bitcoin or wire them cash.
Report suspicious contacts to authorities such as the Federal Trade Commission (FTC) or your local consumer protection office.
Stay informed about common scams and share information with friends and family. One of the best ways to do this is by enrolling in the Complete Internet Security Basics and Phishing Awareness Course for Parents on TrainMyParent.com and Sign up and subscribe to our newsletter!

A legal work desk. — Make sure your lawyer is legitimate!

As we say on TrainMyParent.com, scammers keep getting trickier, and usually target those who aren't paying attention. Scams come in many forms, including phishing emails, smishing texts, quishing packages, tech support phone calls....the list keeps growing.

Learn how you can protect yourself or your family by enrolling in the Complete Internet Security Basics and Phishing Awareness Course for Parents on TrainMyParent.com

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