Crypto Recovery Scam UK: A Second Scam to Avoid
No genuine regulator or recovery service needs your seed phrase, private key, or an upfront fee to release crypto.
What a crypto recovery scam looks like
This scam targets people who have already lost money to a crypto investment scam, contacting them again to say their funds have been located and can be returned for a fee. A reported FCA-impersonation pattern involves a caller claiming the FCA has recovered funds from a crypto wallet opened illegally in the victim's name, and that a payment or personal details are needed to release it.
Why it's convincing
Having already lost money once, the promise of getting it back is understandably appealing. The caller may already know details of your original loss, either because the same group ran both scams or because your details were sold on to a separate operation.
Signs a crypto recovery offer is a scam
- You're contacted unexpectedly by someone claiming to be the FCA, a government body, or a 'recovery specialist'.
- You're told funds or a crypto wallet have been 'recovered' and a fee or your details are needed to claim them.
- You're asked for your wallet's private key or seed phrase.
- There's pressure to act quickly to avoid missing the recovered funds.
How the scam works step by step
First, someone who has already lost money to a crypto scam is contacted again, told their funds have been traced or recovered. Second, a fee is requested, or sensitive details like a wallet's private key or seed phrase are asked for. Third, if a fee is paid, no funds are returned; if a private key or seed phrase is shared, any remaining crypto in that wallet can be stolen directly.
How to protect yourself
The FCA has warned that fraudsters impersonate the regulator, and has stated that it will never ask you to transfer money to it or share sensitive banking information such as account PINs and passwords.
- Never share a wallet's private key or seed phrase with anyone, whatever they claim to be helping you recover.
- Be sceptical of any unexpected contact claiming your lost crypto has been found.
- Verify contact independently using the FCA's own website, Firm Checker, or published helpline details, not details supplied by the caller.
If you've already paid or shared details
Stop all further contact and payments immediately. If you shared a wallet's private key or seed phrase, treat it as compromised and move any remaining funds to a new wallet as soon as possible if you're still able to.
How to report a crypto recovery scam (UK)
Report a suspected recovery scam to the FCA on 0800 111 6768. If you've lost money, also report it to Report Fraud at reportfraud.police.uk or 0300 123 2040 if you're in England, Wales, or Northern Ireland. In Scotland, report to Police Scotland on 101.
Frequently asked questions
Would the FCA really contact me saying my crypto has been recovered?
Treat unexpected contact along those lines as a scam. The FCA has stated that it will never ask you to transfer money to it or share banking PINs and passwords.
Should I ever share my wallet's private key or seed phrase with a 'recovery' service?
No. Never share this with anyone, regardless of what they claim to be helping you recover. Doing so can let someone steal any remaining funds directly.
I've already paid a fee to a crypto recovery service. What do I do?
Stop all further contact and payments, and report it to the FCA and Report Fraud. There's no guarantee of recovering the fee, but acting quickly matters.
Is genuine crypto recovery ever possible?
Recovering stolen or lost cryptocurrency is very difficult in practice. Be sceptical of anyone who contacts you unexpectedly claiming they can do it for a fee.
How do I report a crypto recovery scam?
Report it to the FCA on 0800 111 6768, and to Report Fraud at reportfraud.police.uk or 0300 123 2040 (Police Scotland on 101 in Scotland) if you've lost money.