Fake Cryptocurrency Recovery Companies: How to Avoid Scams

Cryptocurrency fraud is on the rise, and many victims seeking assistance face an additional layer of deception: fake crypto recovery companies.

These malicious operations offer to restore stolen assets but often victims are tricked further with upfront payments and unreal guarantees. Additionally, scammers regularly apply follow-up scams, posing as recovery firms or police enforcement, to steal even more money from victims who have already been defrauded.

In this article, we dive into why crypto fund recovery is never guaranteed, expose known fake recovery companies, and offer crucial advice on how to avoid falling victim to these schemes.

Why Crypto Fund Recovery Can’t Be Guaranteed

Many fraudulent recovery companies lure victims with promises of guaranteed quick fund retrieval. However, recovering stolen cryptocurrency is highly complex and never certain.

Irreversible Transactions: Once a crypto transaction is confirmed on the blockchain, it cannot be reversed like a bank transaction.
Use of Privacy Services: Scammers often use mixers, tumblers, and privacy coins to obscure the origin of stolen funds, making tracing difficult.
Offshore and Unregulated Exchanges: Many stolen assets are quickly moved to jurisdictions with weak regulations, limiting legal enforcement options.
Lack of Cooperation from Platforms: Not all cryptocurrency exchanges cooperate with law enforcement, especially the ones operating in regions with lax financial oversight.

For these reasons, no reputable company can guarantee cryptocurrency return.

The best course of action is to deal with organizations whose forensic experts will examine the blockchain trail and collaborate with legal and law enforcement agencies.

After tracing the cash to a known business, such as a regulated exchange, authorities can only approach and get a court order to freeze the funds and finally return them to the legitimate owner; the procedure is never quick or straightforward.

How to Identify and Avoid Fake Recovery Companies

Below are key warning signs and strategies to protect yourself from recovery scams.

Spontaneous contact: Recovery companies have no way of knowing if someone is a victim, so if an entity reaches out of the blue, that is a major red flag and probably a follow-up scam.
Beware of Guaranteed Recoveries: Legitimate crypto recovery firms will never promise a 100% recovery rate or a strangely quick service. Scammers, on the other hand, use this tactic to lure victims into paying them.
Watch Out for Upfront Fees: Exercise caution with companies requiring substantial upfront fees before delivering any results. Legitimate firms usually operate on a transparent, success-based model rather than empty promises.
Lack of Transparency: Authentic companies have verifiable credentials, a transparent operating history, and partnerships with legal entities. A company that refuses to provide details about its process or references is a red flag.
High-Pressure Tactics: Fraudsters often use urgency to pressure victims into making quick decisions. If a recovery company pressures you to act immediately, it is a major red flag.
Fake Reviews and Testimonials: Scammers frequently fabricate positive reviews to appear credible. Always cross-check independent sources, such as consumer protection websites or discussion forums, to verify a company’s legitimacy.
Look for Complaints on Reddit and similar forums: Many scam victims share their experiences on discussion platforms like Reddit, Trustpilot, and other scam-reporting websites. If a company has multiple complaints, it’s a red flag.
Check the Website’s Age: If you are tech-savvy, you can use domain lookup tools to check the website’s registration date. Fraudulent recovery services often operate under newly registered domains, typically only a few months old. Once exposed, these scams frequently rebrand and launch new websites to evade detection.

Scam Cryptocurrency Recovery Companies to Avoid

Let’s analyse some examples of companies that are still in business but are clearly scams.

Please review the previous section to understand why they are fakes.

The West Technologies (confirmed scam)

The West Technologies presents itself as a cryptocurrency recovery service, but multiple red flags and user complaints suggest it is a scam.

The company uses deceptive tactics to exploit victims, including false success claims and upfront payments. Discussions on Reddit and independent research reveal the following:

False Success Rates: claims a “97% Crypto Recovery” rate without any verifiable proof.
Unprofessional Contact Details: uses a gmail address and a residential address as its headquarters.
Fake Recovery Updates: send misleading progress reports but never return assets.
Fake Staff: their team description uses counterfeit photos.
User Complaints: multiple Reddit reports warn that users were charged upfront fees with no results.

Cybernetics Services (confirmed scam)

Cybernetics Services presented itself as a cryptocurrency recovery firm only to quickly reveal itself as a fraud:

User Complaints: numerous Reddit discussions and scam-reporting sites warn about deceptive practices.
Featured on Scam Lists: featured on Crypto Legal’s list of reported scam companies, further confirming its dubious nature.

Payback Ltd (confirmed scam)

Payback Ltd is a company that claims to assist individuals in recovering funds lost to online scams, including cryptocurrency fraud. Several concerns have been raised regarding the legitimacy and effectiveness of Payback Ltd’s services:

FBI Investigation: In 2024, the FBI’s San Diego Division seized web domains associated with Payback Ltd as part of an investigation into cryptocurrency recovery fraud. The FBI warned that fraudulent recovery services often charge upfront fees and fail to deliver on their promises, producing incomplete or inaccurate reports.
Reddit Discussions: Users on Reddit have labelled Payback Ltd as a scam, citing experiences where, after paying fees, no substantial assistance was provided. One user mentioned being with the company for two years without any meaningful progress.
Independent Case Review: VALEGA Chain Analytics has encountered multiple cases in which individuals initially engaged Payback Ltd. for fund recovery. Based on our assessments, we can confirm that their reports lacked meaningful investigative value and often failed to provide actionable insights. Additionally, affected users reported waiting several months, sometimes even years, only to receive incomplete or ineffective reports.

Why VALEGA Chain Analytics is Different

VALEGA Chain Analytics takes a transparent and ethical approach to helping digital currencies fraud victims. Unlike fraudulent recovery businesses, we hold to the following principles:

Legally Registered & Established: VALEGA Chain Analytics is a legally registered company headquartered in Finland since 2018. We specialise in financial fraud investigations, anti-money laundering (AML) compliance, and blockchain forensic solutions.
No Upfront Payments: we do not ask for large payments before any investigation begins.
No False Guarantees: our team provides a realistic assessment of each case, without making misleading promises.
Encouraging Legal Action: all victims are recommend to consult legal experts. If necessary, VALEGA can connect victims with trusted legal partners.
Advocate for reporting the crime to authorities: we strongly urge victims to report their case to the police or relevant law enforcement agencies as the first step in any recovery effort.
Partnerships: VALEGA collaborates with various entities, including law enforcement agencies like Europol, industry partners, and regulatory bodies. Learn more on the partnerships page.
Proven Media Presence: unlike scam companies, our expertise has been publicly recognised. Visit the press page to review our past cases and media coverage.

What to Do If You’ve Been Scammed

If you have fallen victim to a fraudulent recovery service or to a follow-up scam, take the following steps.

Stop all communication with the scam company immediately.
If software was installed, to remote access your computer for example, remove it and in case of doubt, do not connect the computer to the internet and ask for help.
Report the fraud to relevant authorities, such as local law enforcement and/or, consumer protection agencies.
Report the website to Google and other search engines.
Seek legal advice to explore potential options for recourse.
Educate others by sharing your experience to prevent further victims.

If you need assistance, VALEGA Chain Analytics can help mitigate further risks and guide you toward the best recovery strategy. Contact us for professional blockchain forensic analysis and expert guidance.

Final Thoughts

For a more in-depth look at crypto scams, including Follow-Up Scams, check out this article: Crypto Scams: What Every Victim Needs to Know.

Crypto recovery scams are on the rise, aimed at desperate victims who have already lost money. Being aware of fake companies and identifying red flags could prevent you from falling into another trap.

If you’ve lost cryptocurrency, work with a professional blockchain forensics firm who collaborates with law enforcement rather than companies that offer unrealistic claims. Always carry out extensive research before hiring any recovery service.