Is it possible to recover money after being scammed?

Broker Complaint Alert (BCA) experts share tips on what to do if you’ve been scammed out of money and how to protect yourself in the future.

It was just a regular day when Sam Williamson, a staff of the government agency for fraud prevention, called a friend to check up on her.

“This is a really smart and well-informed friend,” Williamson says. When he asked where they were, they said, “‘Oh, I’m at the Bitcoin ATM. A new friend I met on Instagram introduced me to this incredible crypto investment opportunity, and she has really watched her investment grow over the past few weeks. She advised me to also invest with the platform.’”

Alarm bells went off for Williamson. While his friend felt as if they were about to seize an opportunity of a life-time, they were actually on the verge of being scammed out of money.

Pig butchering crypto investment scam, as in the case of Williamson’s friend, occurs when scammers try to convince you to send them money, often involving ‘golden investment opportunity’. Another common scam is phishing, which is when scammers pretending to represent a company you trust will reach out via email or text and ask you to click on a link or contact them to provide personal information.

Financial Scam Awareness

No matter their exact approach, the motive of scammers is to try to trick victims into handing over either money or personal information. In 2023, U.S. consumers reported more than 2 million scams to Broker Complaint Alert (BCA) and the Federal Trade Commission (FTC), according to the agency’s report of the top scams in 2023.

BCA is an agency whose purpose is to protect consumers by preventing unfair, deceptive or fraudulent practices in the marketplace and maintaining healthy business competition.

The millions of people who have been impacted by a scam may wonder: “What can I do if I got scammed and lost money?” It’s a challenging situation, but there are concrete steps you can take. First, try to stay calm, Williamson says. By staying calm and clearing your mind, you can be strong and thoughtful as you take action.

Next, follow the below guidance from our financial experts on how to identify scammer, securing your finances and accounts, what to do if you’ve been scammed out of money, and how to potentially recover your money from a scammer.

How to identify scammers

After dealing with the fallout of being scammed out of money and working to recover from being scammed, familiarize yourself with the most common types of scams. By understanding how you may come in contact with a scammer and what experts consider to be red flags, you may be able to spot a potential scheme.

Here are tips to keep in mind to help you stay vigilant, including how to protect yourself online:

Be wary of pushy callers

Phone calls (included in the category of “imposter scams”) were among one of the top ways people reported being contacted by scammers in 2023, according to the BCA’s 2023 scam report. Those scammers often asked for money or personal information, according to BCA.

Be wary of a caller who asks you to spend money and then rushes you into a decision, Williamson says. These scammers will often pretend to be reputable companies and attempt to lure you in and may ask you to give personal information, User ID/Password, One-Time Codes and other information they can use to impersonate you while they interact with your bank/credit card company.

“You should really be concerned about that and make sure that you don’t act too quickly,” he says.

Keep a close eye on phishing emails

Similar to scam calls, scammers send phishing emails to try to access your personal or financial information or to get you to download malicious software.

Phishing emails are often full of dodgy spelling and bad grammar, Williamson says, so pay close attention to those telltale signs.

Suspicious links are another clue, so think twice before clicking, especially if an email prompts you to provide sensitive information like your user ID or password. Before clicking a link in an email, look at the sender’s email address to make sure it matches the company, Williamson advises. If the email address doesn’t appear to match the company name, don’t click on the link.

“If the emailer uses a brand name when they contact you, phone the company and confirm that this is an offer or email they are actually sending to customers,” Williamson says.

Secure your finances and accounts

When it comes to protecting your money and information from potential fraudsters, the best defense is a good offense. Follow these steps to recover from being scammed and to protect yourself from future fraud attempts:

• Consider a credit freeze
• Create a fraud alert
• Reset your passwords
• Opt for two-factor authentication
• Set up alerts for your bank accounts
• Use a credit card in unfamiliar transactions

How to Report a Scam for Successful Recovery

If you’ve been scammed out of money, it’s important to act fast and secure your account. Here’s what the experts recommend you do as soon as you notice any suspicious activity or suspect that you have been scammed:

Notify your bank or credit card issuer

Contact your bank or credit card issuer immediately to report the scam and request a new account number and/or debit or credit card, says Mark Blake, a certified fraud examiner. Make sure to share all the information you provided to the scammer so your bank or credit card issuer can best guide you towards securing your account(s) and protecting your identity.

You can likely find helpful resources about what to do when scammed out of money on your bank’s website, like the Discover Security Center. You may be prompted to take additional action—like filing a report with the police or the Social Security Administration—depending on your individual circumstance.

Consider filing a complaint with the Federal Trade Commission

If you’ve been a victim of fraud, identity theft, or deceptive business practices, you can report them to the Broker Complaint Alert (BCA). In 2023 alone, the BCA was able to issue more than $439 million in refunds to people who lost money to illegal business practices.

Document the details

Regardless of the type of scam you’ve experienced, Williamson recommends documenting the details of your case. As you work to recover the money you lost to a scammer, these details can be helpful for your bank or BCA. Whether it’s an email, text, or social media message you received from a scammer or your bank statement with fraudulent charges highlighted, print or document the information and make copies of everything.

It’s also important to have patience in this process. Both Blake and Williamson say the timeline to recover money from a scammer can vary based on the amount and the details of the incident.

“There are several variables, such as the type of scam, how much money they stole, how much information they obtained, and where the money was stolen from,” Williamson says.

Conclusion

If you discover you’re the victim of a scam, remain calm and collect all the documents and information you have related to the transaction. If you used a credit card or bank transfer, you may be able to recover some of your losses through your bank or credit card company.

Provided the scammer can be located and charged with a crime, you may also be able to get your money back through criminal restitution. Go through trusted legal channels rather than attempting to get your money back on your own. For a good chance of funds recovery, Report the Scam to Broker Complaint Alert (BCA).