In 2025, the FBI’s Internet Crime Complaint Center received more than one million complaints, with reported losses of around $17.6 billion. Investment fraud alone accounted for about $8.6 billion, and more than $11 billion of all losses were linked to cryptocurrency.
Behind those numbers are people and businesses asking the same question: can I get my money back?
Sometimes the answer is yes, at least in part. But scam and fraud recovery almost always depends on one thing first: knowing who you’re dealing with. That’s where background checks and background investigations come in. They’re not only a way to screen people before you trust them. They’re also one of the most practical tools for recovering after trust has been broken.
Why recovery starts with identity
Scammers rarely use their real names. They hide behind fake profiles, borrowed identities, shell companies and accounts opened by money mules. Without cutting through that, there’s nobody to sue, nobody to report, and nothing to freeze.
A background investigation in a fraud case aims to answer:
- Who is really behind the scheme?
- Are they linked to other people, companies or previous frauds?
- Where are they based, and which courts or authorities can act?
- What assets do they hold, and where?
- Is there a realistic chance of recovering anything?
The answers decide whether legal action is worth pursuing, and how.
How background checks support scam recovery
1. Unmasking the people behind fake identities
Investigators work from what the victim has: names, usernames, phone numbers, email addresses, wallet addresses, bank details, website domains and photos. Using open-source intelligence, corporate records, domain registration history and image analysis, they connect those fragments to real people and organizations.
A profile photo might turn out to be stolen from someone else’s social media. A “regulated” investment firm might be registered at a virtual office with directors who appear on dozens of other companies. Each finding narrows the search.
2. Linking the case to wider schemes
Scams are rarely one-offs. Background investigation often reveals that the same people, websites, phone numbers or bank accounts are tied to other complaints, lawsuits or regulatory warnings. That matters for recovery: other victims may already be taking action, and a pattern of fraud strengthens any legal claim.
3. Identifying assets
Recovery depends on there being something to recover. Asset searches look at property, company interests, vehicles, bank relationships and crypto holdings connected to the people responsible. Where funds have been converted into crypto, blockchain tracing can show which exchanges received them, and exchanges can sometimes freeze accounts when presented with the right legal request.
4. Supporting legal action
Lawyers use investigation findings to apply for disclosure orders, freezing injunctions and judgments. Clear, well-documented background investigation reports make those applications stronger and help courts act quickly.
5. Supporting reports to authorities
Police and regulators receive huge volumes of fraud reports. A report that identifies likely suspects, links and assets is far more likely to be acted on than one that simply describes the loss.
Beware of recovery scams
There’s an important warning here. The FBI and other agencies have repeatedly warned about recovery scams: fraudsters who contact victims claiming they can get lost money back, usually for an upfront fee. Some pose as lawyers, government officials or even law enforcement. Many are run by the same networks behind the original scam.
Before paying anyone who offers to recover your money, run a background check on them too:
- Did they contact you first? Legitimate firms rarely cold-call fraud victims.
- Are they promising guaranteed results? No honest investigator or lawyer can guarantee recovery.
- Do they want payment upfront in crypto or gift cards? That’s a major red flag.
- Can you verify their registration, address and people independently? Check company registries, professional bodies and reviews from sources they don’t control.
- Do they claim special access to frozen funds or government databases? That’s almost always false.
Background checks as prevention
The same background check services that support recovery are also the best way to avoid needing it. Before investing, partnering, hiring for a sensitive role, or sending a large payment, a background investigation can confirm that:
- The person or company is who they say they are
- Their claimed history, licences and track record are real
- There’s no record of fraud, litigation, insolvency or regulatory action
- Their ownership and connections make sense
A few days of checks before a transaction cost far less than months of recovery work after one.
What to do if you've been scammed
- Stop all payments and don’t send more money to “unlock” funds.
- Contact your bank or exchange immediately. Speed matters if there’s any chance of a recall or freeze.
- Preserve everything: messages, emails, transaction records, wallet addresses, websites and screenshots.
- Report the fraud to the police and the relevant national reporting center, such as IC3 in the US or Action Fraud in the UK.
- Speak to a lawyer and a reputable investigator about whether tracing and recovery are realistic.
- Be wary of anyone who contacts you offering to recover the money.
How CAT Investigators can help
CAT Investigators provides background checks, background investigations, asset tracing and blockchain analysis for individuals, businesses and law firms dealing with scams and fraud. Working from New York, London and Hong Kong, we identify the people and companies behind fraudulent schemes, trace funds and assets across jurisdictions, and produce evidence that lawyers and authorities can act on.
We’ll always tell you honestly whether recovery looks realistic before you commit to further work.
This article is for general information and does not constitute legal advice.