What to Do If You’ve Lost Money to a Scam

Quick answer

• Act immediately: Report the scam to relevant authorities and your financial institutions.
• Gather all evidence: Collect transaction records, communications, and any other relevant documents.
• Contact your bank or credit card company: If you paid by these methods, initiate a dispute or fraud claim.
• Report to federal agencies: File complaints with the FTC, FBI’s IC3, and potentially other sector-specific regulators.
• Consider legal action: If the amount lost is significant and you have strong evidence, consult an attorney.
• Protect your identity: Monitor your credit reports and accounts for any signs of further compromise.

Who this is for

• Individuals who have recently lost money due to a fraudulent scheme.
• People who are unsure of the steps to take after realizing they’ve been scammed.
• Anyone seeking guidance on recovering lost funds or mitigating further damage.

What to check first (before you act)

Goal and timeline

What is your primary objective? Is it to recover the lost funds, prevent further losses, or simply report the incident? Your goal will shape your actions. The timeline is critical; many recovery options have strict deadlines, so the sooner you act, the better your chances.

Current cash flow

Assess your immediate financial situation. Do you have enough liquidity to cover essential expenses while pursuing recovery efforts? Understanding your cash flow helps determine if you can afford potential legal fees or other costs associated with recovery.

Emergency fund or safety buffer

Do you have an emergency fund in place? Losing money to a scam can be financially devastating. If your emergency fund is depleted or insufficient, your immediate priority might be rebuilding it after addressing the scam.

Debt and interest rates

Are you carrying any debt? The scam might have exacerbated existing financial pressures. Prioritize managing high-interest debt, as the cost of carrying it can outweigh potential recovery amounts, especially if recovery is uncertain.

Credit impact

Has the scam involved any of your personal identifying information? This could lead to identity theft, which can severely damage your credit score. You’ll need to take steps to protect your credit if this is a possibility.

Step-by-step (simple workflow)

1. Recognize and Accept: Acknowledge that you have been a victim of a scam. This is the first and often hardest step.

• What “good” looks like: You’ve moved past denial and are ready to take action.
• Common mistake: Blaming yourself excessively, which can lead to paralysis. Avoid this by focusing on what you can do now.

2. Stop All Communication: Immediately cease all contact with the scammer. Do not respond to any further attempts to communicate.

• What “good” looks like: The scammer has no further avenues to manipulate or extract information/money from you.
• Common mistake: Believing the scammer’s promises to “fix” the situation or return money if you provide more information or a small fee. Avoid this by understanding scammers rarely return funds and will only try to get more.

3. Gather All Evidence: Collect every piece of information related to the scam. This includes emails, text messages, call logs, website URLs, transaction details, receipts, and any contracts or agreements.

• What “good” looks like: You have a comprehensive file of all interactions and financial exchanges.
• Common mistake: Discarding “unimportant” details. Avoid this by saving everything, as even small pieces of information can be crucial for investigators.

4. Contact Your Financial Institution(s): If you paid the scammer using a bank transfer, credit card, debit card, or payment app, contact your bank, credit card company, or the payment service provider immediately.

• What “good” looks like: You’ve initiated a fraud claim or dispute and potentially frozen or reversed transactions.
• Common mistake: Waiting too long to report the transaction. Many institutions have strict time limits for disputing fraudulent charges. Act within 24-48 hours if possible.

5. Report to the Federal Trade Commission (FTC): File a report online at ReportFraud.ftc.gov. This is a central repository for scam reports and helps the FTC track and combat fraud.

• What “good” looks like: Your scam has been officially documented by a federal agency.
• Common mistake: Believing the FTC will recover your money directly. While they use reports to build cases, direct monetary recovery for individuals is not their primary function.

6. Report to the FBI’s Internet Crime Complaint Center (IC3): If the scam involved the internet, file a complaint at ic3.gov. The IC3 forwards complaints to relevant federal, state, local, and international law enforcement agencies.

• What “good” looks like: Your case is logged with a law enforcement agency that specializes in cybercrime.
• Common mistake: Not providing enough detail. Be as specific as possible about dates, amounts, and methods of contact.

7. Contact Local Law Enforcement: If the scam has a local connection or you believe immediate criminal action is necessary, file a report with your local police department.

• What “good” looks like: You have a police report number, which may be required by financial institutions or for insurance claims.
• Common mistake: Local police may not have the resources for complex online scams, but a report is still important documentation.

8. Check for Identity Theft: If the scammer obtained your personal information (Social Security number, bank account details, etc.), take steps to protect yourself from identity theft.

• What “good” looks like: You’ve placed fraud alerts or credit freezes on your credit reports.
• Common mistake: Not monitoring your credit reports. Set up alerts and check your reports regularly from AnnualCreditReport.com.

9. Seek Professional Advice (if applicable): For significant losses or complex situations, consider consulting a consumer protection attorney or a financial advisor.

• What “good” looks like: You have expert guidance tailored to your specific circumstances.
• Common mistake: Assuming legal action is always the best or only option. Consult professionals to understand costs versus potential benefits.

10. Review and Adjust Security: Examine your online and financial security practices. Strengthen passwords, enable two-factor authentication, and be wary of unsolicited communications.

• What “good” looks like: Your digital footprint is more secure, reducing the risk of future scams.
• Common mistake: Returning to old, insecure habits. Make lasting changes to your security protocols.

Common mistakes (and what happens if you ignore them)

| Mistake | What it causes | Fix