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Many Australians who have already lost money to a scam are being targeted again by criminals offering to help recover their stolen funds. These “money recovery scams” specifically target people who are feeling distressed and hoping to get their money back.  

How the scam works 

A scammer contacts you by phone, email, text message or social media claiming to be from a government agency, law firm, financial investigator, police unit, or cryptocurrency recovery service. They may say they have located your money, identified the offender, or secured compensation on your behalf. To release the funds, they ask for an upfront fee, tax payment, administration charge, or personal identification documents. Once payment is made, the scammer either disappears or demands even more money.  

Real Example – 90yr victim, $7,000 losses 

The victim reported being contacted by an individual claiming to represent a financial recovery organisation regarding the recovery of funds allegedly lost through foreign exchange trading several years earlier. 

The individual advised that the funds were supposedly held in a cryptocurrency wallet and could be recovered. Wallet details were provided, and the wallet appeared to be registered in the victim’s name. The victim was told that fees were required to access the wallet and subsequently made a number of bank payments. These payments appeared to be reflected in the online wallet balance, which continued to increase over time. 

At a later stage, the victim was informed that the wallet had been compromised and that the funds had been transferred to a different wallet address. Although the victim could still view the wallet online, they believed they no longer had control over it. The victim was then advised that further payments were required to release the funds, which were represented as exceeding USD $3 million. Despite making additional payments, the promised funds were never received, and all communication with the purported recovery organisation ceased. 

The victim further reported that their financial institution later advised that an application had been made for a $50,000 personal loan in their name without their authorisation. Thankfully this application was unsuccessful.  

Warning signs 

Be suspicious if: 

• Someone contacts you unexpectedly claiming they can recover money lost in a previous scam. 

• You are asked to pay any fee before receiving recovered funds. 

• They request copies of your driver’s licence, passport, banking details, or other personal information. 

• They ask for remote access to your computer, tablet, or phone. 

• They guarantee they can recover your money. 

• The organisation pressures you to act quickly or keep the matter confidential.  

Protect yourself 

• Never pay anyone who promises to recover money lost to a scam. 

• Never provide personal information or identity documents to unsolicited callers or online contacts. 

• Do not allow strangers remote access to your devices. 

• If you have lost money, work directly with your bank or financial institution regarding possible recovery options. 

• Verify organisations independently by contacting them through official websites or publicly listed phone numbers.  

If you have been a victim 

Act quickly: 

1. Contact your bank or financial institution immediately and ask them to stop or recall transactions where possible. 

2. Change passwords for important accounts. 

3. If identity documents have been shared, contact ID Support NSW or IDCARE for assistance. 

4. Report the scam to police via ReportCyber, your local police station, the Police Assistance Line (131 444), if a financial loss has occurred. 

5. Report the scam to Scamwatch to help warn others and support intelligence gathering.  

Remember 

No legitimate government agency, police service, lawyer or financial institution will ask you to pay an upfront fee to recover money lost to a scam. If someone contacts you unexpectedly with such an offer, hang up, cease contact, and seek advice from a trusted family member, friend, your bank, or police.