Have you lost money to an investment fraud and someone is offering to get it back? Be extremely cautious. So-called recovery scams are one of the most cynical types of fraud - they deliberately target people who have already been defrauded once and are in a desperate situation.
What Is a Recovery Scam
A recovery scam is a second wave of fraud. Fraudsters contact victims of previous investment frauds and offer them “help recovering their money”. In reality, they simply want to extract more money.
Typical scenario:
- The victim invests in a fake platform and loses money
- Several weeks or months later, they are contacted by a “money recovery specialist”
- The specialist claims to have “contacts at regulatory authorities” or “access to frozen funds”
- They demand an advance for expenses - a “registration fee”, “refund tax”, “account unlocking fee”
- The victim pays and the fraudster disappears
- The process may repeat - another “firm” makes contact with another offer
Warning Signs - How to Recognise a Recovery Scam
The firm contacts you unsolicited
A legitimate lawyer never contacts you unsolicited with an offer of services. If someone you did not seek out calls or writes to you, it is very likely a fraud.
They demand an advance for expenses
This is the clearest sign of fraud. Recovery firms typically demand:
- A “registration fee” to commence the case
- A “refund tax” on the money
- An “account or fund unlocking fee”
- “Costs of international legal assistance”
A legitimate lawyer never demands an advance for expenses. A lawyer may request a reasonable advance on their fee for work, but not “authority fees” or “taxes”.
They promise 100% success
No serious professional can guarantee a result. If someone promises you “guaranteed money recovery” or “100% success rate”, they are lying.
They are not in the Czech Bar Association directory
Verify anyone who claims to be a lawyer in the online directory of the Czech Bar Association (CAK). If they are not listed, they are not a lawyer and are not authorised to provide legal services.
They communicate only online
Recovery scam firms typically:
- Have no physical address in the Czech Republic
- Communicate only by email or chat
- Refuse in-person meetings
- Have websites with fake reviews
Specific Scenarios from Practice
”Hacker firm”
The firm claims to have “hackers” who can trace and reverse cryptocurrency transactions. They demand a fee for “forensic blockchain analysis”. In reality, they perform no analysis whatsoever.
”Foreign law firm”
An email from a “law firm” in London or Zurich claiming to represent a group of injured parties and needing a “contribution towards court fees”. The firm does not exist.
”Regulatory authority”
A fake email from the “FCA”, “SEC” or “CNB” (Czech National Bank) informing you that your funds have been secured and that you must pay an “administrative fee” to release them. No regulatory authority communicates in this manner.
How to Recognise a Legitimate Lawyer
| Legitimate lawyer | Recovery firm |
|---|---|
| Registered in the Czech Bar Association (CAK) directory | Not in any register |
| Transparent pricing before commencement | Demands advance for expenses |
| Realistic assessment of chances | Promises 100% success |
| In-person meeting at the office | Online communication only |
| Professional liability insurance | No insurance |
| Subject to disciplinary oversight by the Czech Bar Association | No oversight |
What to Do If You Have Fallen Victim to a Recovery Scam
- Do not transfer any more money - immediately cease communication with the fraudsters
- Secure evidence - emails, telephone numbers, bank statements, screenshots of websites
- File a criminal complaint - with the Czech Police
- Contact your bank - request a payment recall if you paid recently
- Seek a legitimate lawyer - verified in the Czech Bar Association (CAK) directory
Conclusion
Recovery scammers are cynical fraudsters who exploit the desperation of their victims. Protect yourself - verify, do not transfer money based on unsolicited offers, and always check a lawyer’s registration with the Czech Bar Association.
If you need assistance, contact our office. We are duly registered with the Czech Bar Association and the initial consultation is free of charge. More about our specialisation in helping fraud victims.