Recovery and re-victimisation · Also called fake compensation scam, fake FTC refund, scam victim refund, refund processing fee scam
Fake refund of a previous scam
A fake refund scam contacts people who lost money in an earlier scam and says a refund or compensation is waiting for them. The caller may claim to be from a government agency, a consumer group, or even the original company. To release it you must pay a fee or share bank details, and the refund never arrives.
How it works
- Scammers buy or reuse lists of people who have already been scammed.
- They call, write, email, or message, saying a government agency, consumer group, or company has money to return to the victim.
- They ask for a processing fee, administrative charge, or tax, or for bank and Social Security details to deposit the refund.
- If the victim pays, the money is gone; if they share details, their identity or accounts can be misused.
Red flags
- You are told you are due a refund or compensation for an earlier scam, out of the blue.
- You must pay a fee, tax, or charge before the refund is released.
- The caller asks for your bank account number or Social Security number to send the money.
- You are sent a check for more than you lost and asked to return the difference.
If you are targeted
- Stop contact and do not send more money or share personal details.
- Treat this as a recovery scam: the FTC says it never asks for money to help you get a refund.
- Check any claimed refund programme by looking up the agency's official website and phone number yourself.
- If you paid or shared bank details, call your bank straight away.
- Report it. Our Report a scam page lists where to report in your country, such as ic3.gov and ReportFraud.ftc.gov in the US.
Prevention
For individuals
- Know that government agencies and legitimate refund programmes do not charge a fee to pay you a refund.
- Never deposit a check for more than you are owed or send money back from it.
- Be extra careful after any scam loss, because refund offers target people who have already lost money.
For organisations
- Agencies that run genuine refund programmes can publish how they contact people and that they never charge a fee.
- Banks can warn scam victims to expect follow-up refund offers and to check them with the bank first.
By the numbers
Figures are for the reporting category this scam falls under, not this scam alone.
| Recovery scam losses reported to the FBI IC3 in 2025, which may include losses from the earlier scam (part of Losses reported to the FBI IC3 in 2025) | $1.4B | US, 2025, FBI IC3 |
Real cases
No documented case in the atlas yet. New cases are added as they are sourced.
Delivered through: Voice phishing (vishing), Email phishing
How official datasets classify it
- UK Finance
- Advance fee scam
- Scamwatch
- Money recovery scams
Questions
- Does the FTC charge a fee to send refunds?
- No. The FTC says it never asks for money or for your financial account numbers to help you get a refund. Anyone who does is a scammer.
- Someone says I am owed compensation for a scam. Is it real?
- Probably not if they contacted you first and want a fee or your bank details. Look up the organisation's contact details yourself and check with it directly.