A practical guide to recovering stolen funds after a scam
In our line of work, we’re contacted numerous times a day by victims of scams. These include investment fraud, Authorised Push Payment Fraud (APP) and more frequently, scams involving cryptocurrency.
These scams often share common tactics designed to build trust, manipulate emotions, and create urgency, all with the ultimate aim of persuading victims to part with their money.
To help those who find themselves in this position, we’ve prepared this practical guide outlining the warning signs to watch for, the immediate steps to take, and the legal avenues available for fund recovery.
The classic hallmarks of a scam
The facts of every scam will differ from one to the next however, our experience has shown that many fraudsters employ similar strategies to convince victims to part with their money. These include:
- False urgency – fraudsters often insist there is a “limited time” to invest, creating pressure and reducing the likelihood that the victim will seek independent advice.
- Confidence-building through staged returns – the initial investment may be a modest amount, such as £200. After a short period, the scammer may return some funds to create the illusion of profitability and to encourage larger investments.
- Guided account creation – victims are sometimes instructed to set up bank or cryptocurrency accounts while the fraudster shares their screen and “walks them through” the process, giving the criminal greater opportunity to access or control the account.
- Convincing but fraudulent platforms – in crypto scams, victims are often given access to an online platform showing their funds being traded in real time. These dashboards are fabricated to mimic legitimate trading platforms.
- Account “upgrades” – at a later stage, the scammer may claim that upgrading the account requires reaching a specific balance, prompting further deposits.
- Release fees – when the victim requests a withdrawal, the fraudster may demand an upfront payment, falsely claiming it is necessary to release the funds.
Immediate steps to take if you suspect a scam
If you believe you’ve been targeted, speed is essential. The earlier you act, the greater your chances of recovery.
- Cease all communication – block the scammer on every platform to prevent further manipulation. Stop sending any funds, no matter what assurances are given. Confide in a trusted friend, family member, or professional adviser.
- Secure your accounts – change the passwords of any affected accounts to prevent the fraudster from accessing them again. Consider enabling multi-factor authentication.
- Gather evidence – collect all relevant material, including:
- screenshots and emails exchanged with the fraudster
- details of all bank transfers, including dates, amounts, and account numbers
- relevant bank statements
- cryptocurrency transaction hashes, if applicable
- the fraudster’s contact information, profiles, and images
- Notify your bank or payment provider – report the matter to your bank’s fraud team as soon as possible. If the transfers were made via the Faster Payments scheme or CHAPS after 7 October 2024, you may be eligible for reimbursement under the UK’s mandatory reimbursement requirement.
- Eligible payments can be reimbursed up to £85,000, with funds returned within five working days.
- There is a voluntary excess of £100.
- Claims must be made within 13 months of the last related payment.
- Multi-step fraud cases involving more than one payment are also covered.
- Consider other payment methods used –
- For credit card payments, request a chargeback under fraud protection rules via your card issuer or the Financial Ombudsman Service.
- For PayPal transactions, use the in-app dispute process without delay.
- Evaluate account security – if you believe your accounts have been compromised, consider asking your bank to freeze them until security can be restored.
- Report the crime – file a report with Action Fraud and notify the platforms used by the fraudsters, such as social media sites, dating apps, or cryptocurrency exchanges.
- Seek professional assistance – engage a reputable legal or investigative firm experienced in fraud recovery services. Be cautious: some victims are targeted again by “recovery scammers” – often the same criminals who committed the original fraud – promising to retrieve funds for an upfront fee. Avoid anyone who contacts you unexpectedly
Take the first step towards recovering your stolen funds
Recovering stolen funds after being scammed is rarely straightforward. It demands swift action, meticulous evidence preservation, and a strategy that combines both legal and investigative expertise. At Edmonds Marshall McMahon, we’ve recovered substantial sums for clients through civil recovery proceedings, private prosecutions for fraud and cross-border enforcement — even in cases where banks and law enforcement initially said recovery was impossible. Our experience spans APP fraud, cryptocurrency fraud investigations and high-value investment scam litigation, giving victims a genuine pathway to reclaiming assets and holding fraudsters accountable.
If you have any questions arising out of this article or would like to discuss your own fraud case, contact Natalie Tenorio-Bernal here or call 020 7583 8392
Natalie Tenorio-Bernal – ‘Recovering stolen funds after a scam’
