Financial Conduct Authority (FCA)
Recovery room scams
The FCA describes recovery room scams, which offer to get back money already lost, and advises checking any firm on the FCA Firm Checker.
People who have lost money to a scam are sometimes contacted again by someone promising to get it back. This page summarises what the Financial Conduct Authority (FCA) has published about these recovery room scams. It does not assess any firm.
What the FCA Says About Recovery Room Scams
On its page "Recovery room scams", first published on 4 December 2019 and last updated on 19 January 2026, the FCA states: "People are being increasingly targeted by recovery room scams." The FCA says these scams claim to provide services usually offered by claims management companies, using the words: "Recovery room scams claim to provide services usually offered by claims management companies."
The FCA also warns about the explanation, or lack of one: "There is usually no explanation about how money will be recovered, or a false one is given."
Warning Signs Described by the FCA
The FCA lists several signs. On contact details it says: "Recovery rooms generally use a web-based email address, such as gmail, Yahoo, Hotmail or Russian search engine, yandex." On unexpected calls it advises: "If you get a phone call offering to recover your losses, ask how the caller has information about your lost money."
The same idea appears in the 2013 SEC and CFTC investor alert on binary options, which described alleged refusals to credit or reimburse customers, identity theft and alleged manipulation of trading software. People who have been through such problems can be an obvious target for a second approach, so the warning signs above apply even if the first contact came from a different source. For the earlier tactics, see binary options scam warning signs.
Checking a Firm Before You Pay
The FCA states: "A firm must be authorised and have permission for the right activities." It adds: "You can use the FCA Firm Checker to find out if a firm is authorised and has permission for the service it's offering you." The steps are set out in how to check whether a broker is regulated.
Reporting a Recovery Approach
The FCA asks: "If you're worried about a potential scam, or you think you may have been contacted by a fraudster, report it to us." Reporting routes from the FCA, CFTC and ASIC are summarised in how to report a binary options scam. If you are asking whether a trading business of any kind is a scam, see is binary options trading a scam.
Frequently Asked Questions
What is a recovery room scam?
The FCA describes recovery room scams as scams that claim to provide services usually offered by claims management companies, with no real explanation of how money will be recovered.
What contact details does the FCA mention?
The FCA says: "Recovery rooms generally use a web-based email address, such as gmail, Yahoo, Hotmail or Russian search engine, yandex."
How does the FCA suggest checking a firm?
The FCA suggests using its Firm Checker to find out whether a firm is authorised and has permission for the service it is offering.
Does this page address whether an individual could face liability?
This page summarises what the regulators' published guidance says. It does not address whether an individual could face liability. Seek independent legal advice.
Sources and Official References
- FCA: Recovery room scams (first published 4 December 2019; last updated 19 January 2026)
- SEC/CFTC: Investor Alert: Binary Options and Fraud (6 June 2013)
This page summarises what the regulators' published guidance says. It does not address whether an individual could face liability. Seek independent legal advice.
This page summarises what the regulators' published guidance says. It does not address whether an individual could face liability. Seek independent legal advice.