Fraud Recovery: Complete Guide

Americans lose over $10 billion annually to fraud, with individual losses ranging from a few dollars to entire life savings. Whether you've been victimized by a scam, identity theft, business fraud, or deceptive practices, recovering your money requires fast action through the right channels. The Federal Trade Commission (FTC) is a key resource for reporting fraud and understanding your consumer rights. This comprehensive guide covers every recovery method available, including chargebacks, bank fraud claims, wire recall, regulatory complaints, and civil litigation.

Types of Fraud and Recovery Methods

Different types of fraud have different recovery paths. Understanding your situation helps prioritize the most effective approach.

Fraud Type	Description	Primary Recovery Method
Credit Card Fraud	Unauthorized charges on your card	Chargeback (FCBA protection)
Debit Card Fraud	Unauthorized withdrawals	EFTA dispute with bank
Wire Transfer Fraud	Tricked into sending wire	Wire recall (time-critical)
Online Purchase Scam	Paid but received nothing	Chargeback or PayPal dispute
Identity Theft	Accounts opened in your name	FTC Identity Theft Report + disputes
Business Fraud	Legitimate business defrauds you	Civil lawsuit + AG complaint
Investment Fraud	Securities scams, Ponzi schemes	SEC/FINRA complaint + civil suit
Romance Scam	Fake relationship for money	FBI IC3 report, payment reversal

Credit Card Fraud Recovery

Credit cards offer the strongest fraud protection under federal law. The Fair Credit Billing Act (15 U.S.C. 1666) limits your liability to $50 for unauthorized charges, and most card issuers offer zero liability.

Your Rights Under FCBA

• Maximum $50 liability for unauthorized charges (most cards offer $0)
• 60 days to dispute billing errors in writing
• Creditor must investigate within 30 days or two billing cycles
• Right to withhold payment on disputed amount during investigation
• Written resolution required explaining outcome

Chargeback Time Limits

Card Network	Unauthorized Fraud	Merchandise Not Received	Quality Disputes
Visa	120 days	120 days from expected delivery	120 days
Mastercard	120 days	120 days from expected delivery	120 days
American Express	120 days	120 days	120 days
Discover	120 days	120 days	120 days

How to File a Chargeback

1. Contact your card issuer immediately - call the number on your card
2. Report the fraud - explain what happened, provide transaction details
3. Follow up in writing - send dispute letter within 60 days of statement
4. Provide documentation - receipts, communications, evidence of fraud
5. Get a new card number - prevent additional fraudulent charges
6. Monitor for resolution - issuer has 90 days to resolve

Debit Card and Bank Account Fraud

Debit card fraud is governed by the Electronic Fund Transfer Act (EFTA), which provides less protection than credit cards. Speed of reporting is crucial.

EFTA Liability Limits

When You Report	Maximum Liability
Before unauthorized use	$0
Within 2 business days	$50
3-60 days after statement	$500
More than 60 days after statement	Unlimited (all losses after 60 days)

Wire Transfer Fraud Recovery

Wire transfers are the hardest to recover because they're designed to be fast and final. However, acting within hours can sometimes enable recall.

Wire Recall Process

1. Contact your bank immediately - call the wire department, not general customer service
2. Request a wire recall - the bank will contact the receiving bank
3. File a police report - may be required by receiving bank
4. Report to FBI IC3 - especially for amounts over $10,000
5. Contact receiving bank directly - if you know where funds went

Wire Recovery Success Rates

Time Frame	Approximate Success Rate
Within 24 hours	Good chance if funds not withdrawn
24-72 hours	Decreasing, depends on jurisdiction
After 72 hours	Very low for domestic, near zero international

Payment App and Digital Payment Fraud

Services like PayPal, Venmo, Zelle, and Cash App have varying levels of protection.

Protection Comparison

Service	Unauthorized Transaction Protection	Scam Protection
PayPal (Goods & Services)	Yes - Buyer Protection	Yes - 180 days to dispute
PayPal (Friends & Family)	Limited	No protection
Venmo	For unauthorized access only	Very limited
Zelle	For unauthorized access only	No protection (you authorized)
Cash App	Limited	Very limited

Filing Reports with Authorities

Reporting fraud serves multiple purposes: creating official records, potentially recovering funds, and helping catch fraudsters.

Where to Report

Agency	What They Handle	How to Report
FTC	All consumer fraud, identity theft	ReportFraud.ftc.gov
FBI IC3	Internet crime, large fraud	ic3.gov
State Attorney General	Business fraud, consumer protection	Your state AG website
Local Police	All fraud (for official report)	Local non-emergency number
SEC	Investment fraud	sec.gov/tcr
CFPB	Bank and financial company issues	consumerfinance.gov/complaint

FTC Identity Theft Report

For identity theft, the FTC Identity Theft Report at IdentityTheft.gov is especially valuable:

• Creates an official government document
• Required by creditors to dispute fraudulent accounts
• Entitles you to free credit reports
• Helps remove fraudulent information from credit reports
• May be required by police to file a report

Civil Remedies for Fraud

When other recovery methods fail, civil litigation may be an option if you can identify and locate the fraudster.

Legal Claims Available

• Fraud/Deceit: Intentional misrepresentation causing damages
• Conversion: Taking or using your property without permission
• Unjust Enrichment: Defendant unfairly benefited at your expense
• State UDAP: Unfair and deceptive acts and practices violations
• RICO: For organized criminal fraud (complex, rarely used)

Damages You Can Recover

Damage Type	Description
Actual Damages	Money you lost to the fraud
Consequential Damages	Losses resulting from the fraud (lost opportunities, fees)
Statutory Damages	Set amounts under consumer protection laws
Punitive Damages	To punish particularly egregious fraud
Attorney's Fees	Many consumer statutes allow fee recovery

Small Claims Court for Fraud

For smaller fraud losses, small claims court offers a faster, cheaper option:

• No attorney required in most states
• Filing fees typically $30-$100
• Limits range from $5,000-$25,000 depending on state
• Can sue for actual damages and sometimes statutory penalties
• Challenge: Must serve the defendant, who may be hard to locate

Step-by-Step Recovery Guide

Step 1: Immediately Secure Your Accounts

• Change passwords on all financial accounts
• Enable two-factor authentication everywhere
• Contact your bank about additional security measures
• Request a credit freeze with all three bureaus

Step 2: Document Everything

• Screenshot all communications with the fraudster
• Save all emails, texts, and social media messages
• Print transaction records and bank statements
• Write a detailed timeline of events while fresh
• Gather any contracts, receipts, or documentation

Step 3: Contact Financial Institutions

• Call your bank/card issuer immediately
• Request chargeback or fraud investigation
• For wire transfers, request immediate recall
• Get case numbers for all reports filed

Step 4: File Official Reports

• FTC report at ReportFraud.ftc.gov
• FBI IC3 report for internet-related fraud
• Local police report (get case number)
• State Attorney General complaint

Step 5: Monitor and Follow Up

• Track status of chargebacks and disputes
• Follow up with agencies if no response
• Monitor credit reports for new fraud
• Consider identity theft protection services

Common Fraud Schemes

Romance Scams

Recovery is difficult because you authorized payments. Focus on:

• Report to FBI IC3 immediately
• If wired money, attempt recall within 24 hours
• Report to dating site where you met the scammer
• Consider civil lawsuit if scammer can be identified

Investment Scams

• Report to SEC and state securities regulator
• File FINRA complaint if broker involved
• Check if scammer is in FINRA BrokerCheck
• May be able to recover through SIPC if broker fraud

Business Email Compromise (BEC)

When fraudsters impersonate vendors or executives:

• Contact your bank immediately for wire recall
• Report to FBI IC3 (they have a special BEC unit)
• Notify your company's IT security
• Consider cyber insurance claim if applicable

Frequently Asked Questions

Can I get my money back if I sent it willingly?

It's more difficult but sometimes possible. Credit card chargebacks may work if you were deceived about what you'd receive. Wire transfers sent willingly are rarely recoverable. PayPal Goods & Services transactions may be covered under Buyer Protection. Focus on fraud reports and civil remedies.

Should I hire a fraud recovery service?

Be extremely cautious. Many "fraud recovery services" are themselves scams that target fraud victims. Legitimate options include consumer protection attorneys (often work on contingency) and your state attorney general's office (free). Never pay upfront fees to recover fraud losses.

How long does fraud investigation take?

Credit card chargebacks must be resolved within 90 days. Bank fraud investigations under EFTA must complete within 10 business days (20 for new accounts/ATM). Wire recalls depend on how quickly funds can be located. Civil lawsuits can take months to years.

What if the fraudster is overseas?

Recovery becomes very difficult with international fraud. Focus on domestic recovery methods (chargebacks, bank disputes). FBI IC3 shares information with international partners but prosecution is rare. Civil lawsuits are essentially impossible without a US presence.

Can I sue my bank for not protecting me?

Generally, banks aren't liable if you authorized the transaction (even if deceived). Exceptions may exist if the bank ignored red flags, failed to follow proper procedures, or didn't comply with Regulation E timelines. Consult a consumer protection attorney.

Will filing reports help me get my money back?

Reports to FTC and FBI rarely result in direct recovery but are essential for building cases and may enable future law enforcement seizures. Police reports are often required by banks and insurance companies. Reports create official records useful for disputes.

What's the statute of limitations for fraud claims?

It varies by state and claim type. Fraud claims typically have 2-6 year limits. The clock usually starts when you discover (or should have discovered) the fraud. Consumer protection statutes may have different deadlines. Don't delay in taking action.