If you've already lost money to a crypto scam, you're at risk of being targeted again, this time by "recovery" scammers who promise to get your money back. Recovery scams are growing rapidly because scammer networks actively sell lists of previous victims to other criminals. This article explains how they work, how to spot them, and what you should actually do instead.
⚠️ Coinstash will never ask you to…
share your password, 2FA codes or recovery phrase
move, send or transfer your crypto or AUD to another wallet, account or platform, including to "recover" or "unlock" funds
pay a fee to get stolen funds back
contact us on WhatsApp, Telegram, Discord or social media DMs
Anyone claiming to be from Coinstash who asks for any of these is a scammer.
How it works
Step 1: They find you
After losing money to a scam, you may post about it online, report it to an agency or simply search for help. Recovery scammers monitor scam forums, social media and even government complaint databases. They may also contact you directly if the original scammers sold your details.
Step 2: The pitch
They contact you (or you find their website) claiming to be a "crypto recovery specialist", "blockchain investigator", "forensic analyst" or even a "law firm" specialising in crypto recovery. They may have professional-looking websites with fake testimonials. Some pretend to be from a government agency, the police or an exchange.
Step 3: The fees
They claim they can trace and recover your stolen funds, but you need to pay an upfront fee for "investigation costs", "legal fees", "blockchain analysis" or "processing charges". These fees range from hundreds to thousands of dollars.
Step 4: Nothing happens
After paying, they either disappear, claim the recovery is "in progress" and request more fees, or deliver a worthless report with no actual recovery.
Red flags
Anyone who guarantees they can recover your crypto. Legitimate investigators never guarantee recovery.
Upfront fees before any work is done
They contacted you first (via email, social media or phone)
They claim to have "special tools" or "government access" to reverse blockchain transactions
Comments on Reddit, Facebook or X (Twitter) saying "I was scammed too but [name] recovered my funds!"
They ask for remote access to your computer or exchange account
They want payment in crypto (legitimate law firms don't typically accept crypto)
The truth about crypto recovery
Cryptocurrency transactions are irreversible. Once sent, they cannot be "reversed" by anyone.
Legitimate blockchain forensics firms (like Chainalysis) work with law enforcement, not individuals, and never guarantee recovery.
The only entity that can freeze crypto funds is a law enforcement agency working with an exchange, and this requires a legal process, not an upfront fee from you.
If your funds were sent to a scammer's wallet, recovery depends entirely on whether law enforcement can identify and freeze the destination before the funds are moved.
What you should actually do
Report to the police via ReportCyber.
Report to Scamwatch at scamwatch.gov.au.
Contact Coinstash Support through the in-app chat. If funds were sent from your Coinstash account, we may be able to assist with information for law enforcement.
Contact IDCARE (idcare.org) if your identity was compromised.
Do not engage with anyone promising recovery for a fee.
For the complete checklist, including contacting your bank, see I think I've been scammed — what should I do?
FAQ
Someone says they're from Coinstash and can recover my funds for a fee. Is this real?
No. Coinstash will never charge you a fee to recover funds or ask you to send crypto anywhere. We only contact you through the in-app chat or from @coinstash.com.au email addresses. If you're unsure, open a chat with us directly from the app or website.
I've already paid a recovery service. What should I do?
Stop paying and stop contact. Report it to Scamwatch and ReportCyber, and let us know through the in-app chat. If you gave them access to your device or accounts, change your passwords and check your 2FA. See Securing Your Account with Two-Factor Authentication (2FA).
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Need a hand? Our Brisbane-based support team is here to help — tap the chat icon in the app or on the website to get in touch.