Fund Recovery Scams

Modified on Mon, 24 Mar at 1:07 PM

Introduction

Losing money to a scam can be devastating, and scammers exploit this desperation by offering fake fund recovery services. Fraudsters pose as "recovery agents," claiming they can help victims get back their lost cryptocurrency or investments—for an upfront fee. These scams prey on those already scammed, making them particularly harmful. This article will help you recognize these fraudulent schemes and avoid further losses.

TLDR: If you’ve lost funds to a scam, beware of fake "recovery agents" who promise to get your money back—for an upfront fee. These fraudsters exploit victims a second time and then disappear. Legitimate recovery processes do not require upfront payments. Always verify services and report scams to authorities.

How Fund Recovery Scams Work

1. Contacting Victims

Scammers identify victims by scraping information from online forums, social media, or complaint websites where victims have shared their experiences. They may also be the same scammers who originally stole the funds, posing under a different identity.

2. Offering Fake Recovery Services

The scammer contacts the victim, claiming they have connections with international financial institutions, law enforcement, legal representatives or specialized blockchain analysts who can trace and retrieve lost funds. They may present fake success stories or forged legal documents to appear legitimate.

3. Demanding Upfront Fees

The scammer will ask for payment in advance, often in cryptocurrency, to cover "processing fees," "legal costs," or "blockchain tracing services." In some cases, they may request multiple payments, claiming additional "unexpected costs" have arisen during the recovery process.

4. Disappearing After Payment

Once the victim pays, the scammer either stops responding or continues to string them along with false updates while demanding more fees. Eventually, communication ceases, and the victim loses more money.

Red Flags of Fund Recovery Scams

Unsolicited contact from an unknown recovery service or individual claiming they can recover your funds.
Guarantees of 100% recovery, which is unrealistic since cryptocurrency transactions are irreversible.
Requests for upfront payments before any service is provided.
Asking for payment in cryptocurrency, making it harder to track and reverse transactions.
Fake legal documents or unverifiable claims of working with authorities like Bank Negara Malaysia or the Securities Commission Malaysia. (MY Specific)
Pressure tactics, such as saying you must act quickly or risk losing your funds forever.

How to Protect Yourself

1. Understand That Lost Cryptocurrency Is Difficult to Recover

Cryptocurrency transactions are decentralized and irreversible. While some blockchain analytics firms work with law enforcement to trace funds, no service can guarantee a full recovery.

2. Verify Any Recovery Service Claiming to Help

Research the company or individual making the offer.
Check official financial watchdogs like Securities Commission Malaysia (SC) or Bank Negara Malaysia (BNM) to see if the company is licensed. (MY Specific)
Search for online reviews or scam warnings about the service.

3. Never Pay Upfront for Fund Recovery

Legitimate legal and financial services typically operate on transparent fee structures or government-regulated processes. If someone demands an upfront payment, it is likely a scam.

4. Report Fund Recovery Scammers

If you suspect a scam, report it to Securities Commission Malaysia (SC), Bank Negara Malaysia (BNM), or the police (CCID – Commercial Crime Investigation Department) or your relevant country’s law enforcement
Share your experience on scam awareness forums to warn others.

What to Do If You Suspect a Scam

Stop all communication immediately.
Do not send any additional payments, no matter what they promise.
Report the scam to the relevant authorities.
Contact your crypto exchange’s support team (platform used to transact) to see if any action can be taken.
Warn others to prevent further victims from falling for the same scam.

Conclusion

Fund recovery scams take advantage of victims who are already in distress. If you have been scammed, be cautious of anyone promising to retrieve your lost funds, especially if they require upfront payments. Always verify claims and report fraudulent activities to the authorities.

Stay informed and stay safe!

Disclaimer

Hata is committed to protecting our customers from fraudulent activities. We’ll never contact you outside our app or platform to ask for your account details, ask you for payment, or push you to make transactions. If someone does this claiming to be us, it’s a scam - don’t trust it and report it right away. All our real messages come through official communication channels only.

We’re here to help, but we cannot promise to recover lost funds. You are responsible for keeping your information safe and conducting your due diligence on the people that you deal with. We are not liable for losses from scams or unauthorised actions conducted outside our platform.

If something seems fishy or out of place, stop talking to them, don’t pay them anything, and let us know through our app. You can also report it to authorities like the Securities Commission Malaysia or local law enforcement.