Fake recovery firms: the second wave hitting Canada
The cruellest scam of 2025 targets people who already lost money: fake "recovery firms" contact victims in Canada, promise to retrieve funds for an upfront fee, and disappear. the CSA has warned about them repeatedly.
How the second wave works
Fraud rings sell victim lists to each other. Weeks after the first scam, a "recovery agent" emails with impossible knowledge: the amount, the platform, sometimes the wallet. The message: pay a fee, get funds back.
The knowledge is real — it came from the first scam. The recovery is not. Upfront "legal fees", "tax releases" and "unlock deposits" are simply the second harvest.
How legitimate recovery actually works
Real practitioners work on documented cases: tracing, claims through your bank's fraud department and, where applicable, OBSI, reports to the Canadian Anti-Fraud Centre (CAFC), and — where justified — legal action. Fees are transparent and never "guaranteed outcomes".
Canadian victims should report to both the CAFC and their provincial securities commission — the two reports feed different enforcement and recovery tracks.
If you have been double-hit
Report the recovery scam exactly like the first fraud — the Canadian Anti-Fraud Centre (CAFC) links the cases, and repeat victimisation data drives enforcement. Then have your original case reviewed properly, on evidence, without upfront success fees.
The original claim does not expire because a fake firm contacted you. The trail, the report and the bank claim are all still available.
Frequently asked questions
How did the recovery firm know my details?
From the first scam. Victim lists are traded between rings; detailed knowledge is a red flag, not a credential.
Are all recovery firms scams?
No — but the honest ones are identifiable: verifiable registration, written scope, no guaranteed outcomes, no upfront success fees. Verify with the CSA before engaging anyone.
Not sure where your situation fits?
Describe what happened in your own words. We will tell you honestly whether a cryptocurrency trading loss review is the right next step.