Skip to content

Crypto Recovery Scams | New Zealand’s Crypto Scam Guide (2024)

Crypto recovery scams are on the rise, offering false hope to victims who've already lost their funds. These scams promise to help recover stolen crypto but often end up draining even more money. Learn how to spot these traps, protect your assets, and avoid falling victim.

Book a Consulting Session Today

18+ Years Of Combined Experience 

Crypto Recovery Scams Crypto Help NZ

What to do if you’ve been Scammed

If you’ve fallen victim to a cryptocurrency scam it’s critical to take immediate action. At Crypto Consulting NZ, we specialize in scam support services tailored to your specific needs. We’ll help you confirm if you’ve been scammed, guide you through documenting your case, and provide expert advice on what to do.

Whether it’s a Recovery Scams or Rug Pulls our team can assist with every step of the process to ensure you’re informed and protected moving forward.

What Are Crypto Recovery Scams?

Crypto recovery scams target kiwis who have already been victimized by a crypto scam or have lost access to their digital wallets. These scams prey on the desperation and frustration of people trying to recover their lost funds.

In NZ, where cryptocurrency use has been steadily growing, many kiwis have become vulnerable to these deceptive schemes. Scammers pose as recovery experts or legal entities, promising to help retrieve stolen or lost crypto assets in exchange for a fee. Unfortunately, these so-called recovery services are often fraudulent, leaving victims in an even worse financial situation.

How Scammers Exploit Victims Seeking Recovery

After losing their funds to a crypto scam or a wallet error, kiwis often search for solutions, and scammers take advantage of this by offering “recovery services.” These services seem legitimate at first, with professional websites, fake testimonials, and even fake legal backing. They convince victims that they have the expertise and connections to recover the lost crypto, sometimes even showing fake progress to build trust.

For many Kiwis unfamiliar with the intricate workings of blockchain technology, this can seem like a lifeline. However, once the victim agrees to the service, the scammers demand upfront payments for fees or legal expenses, after which they either disappear or continue demanding more money.

Crypto Recovery Scam Help NZ

How Crypto Recovery Scams Work

Crypto recovery scams are designed to exploit victims who have already lost funds in previous scams, offering false hope in exchange for more money. These scams are becoming more common in New Zealand as cryptocurrency use increases. Scammers claim to be professionals capable of retrieving lost crypto, but their real goal is to extract further payments from victims.

Initial Contact and Building Trust

Scammers often approach kiwis directly, claiming they can recover their lost funds. They might use fake websites, social media, or email to make contact. By posing as legal experts or blockchain specialists, they build trust with the victim. In some cases, they provide fake progress updates or transaction reports

Fake Recovery Teams and False Documentation

To seem credible, scammers may introduce fake teams of recovery experts or provide official-looking documents showing supposed progress. This could include fabricated legal forms or transaction reports, all designed to convince the victim that the recovery is moving forward. The use of technical jargon and impressive-looking documents further solidifies the scam’s credibility.

Multiple Payment Requests Under Different Pretexts

Once trust is established, scammers start requesting payments. They may ask for fees to cover “legal costs,” “blockchain tracing,” or “taxes,” with each payment framed as necessary for fund recovery. Victims often make several payments, thinking they’re close to getting their money back, only to realize later that no recovery is happening.

Protect shield Icon

How to Protect Yourself From Crypto Recovery Scams

Before engaging with any crypto recovery service, it’s crucial to verify their legitimacy. Scammers often create professional-looking websites or profiles to seem authentic. Look for clear regulatory information, verified reviews, and independent third-party mentions. In New Zealand, check for services registered with the Financial Markets Authority or other relevant authorities.

Never Pay Upfront for Fund Recovery

One of the biggest red flags in recovery scams is when a service demands upfront payment before any work is done. Legitimate services usually charge after they’ve successfully completed the recovery. If you’re asked to pay large fees in advance, it’s likely a scam. Never transfer money without seeing solid evidence of progress, and always question any “urgency” around payments.

Seek Trusted Advice from Certified Crypto Experts

If you’re unsure about a recovery service, consult with certified crypto experts for advice. Trusted professionals, such as those at Crypto Consulting NZ, can help guide you through the process and assess whether a recovery service is genuine. They can provide practical advice to help avoid scams and recommend safe, verified recovery options if they exist.

Book a Consulting Session Today

18+ Years Of Combined Experience 

Disclaimer: All content in this guide is intended for educational purposes only and should not be interpreted as financial advice. As an individual, you are entirely responsible for how you conduct your investments and manage your cryptocurrency interests. It is exclusively your own responsibility to perform due diligence and Cryptocurrency NZ recommends taking extreme care and caution with crypto and are not responsible for the outcomes, management, or oversight of your activities.