He lost US$1 million to romance scammers — and they returned posing as recovery lawyers to steal even more: Why you should know about recovery fraud

Someone claiming to work with financial crimes authorities said officials might be able to recover the stolen money. The caller identified himself as a lawyer named Dennis John Solis, said he worked for a firm called Edward International Legal Corporation and appeared on a video call sitting at a desk — framed certificates on the wall, a flag behind him, credentials ready.

But when Nick asked for more proof, those credentials fell apart instantly.

"The credentials included an AI-generated image of a man meant to look like the guy on the video call," Nick told The New York Times (1). "And that's when I immediately knew it was a scam."

Nick's family had narrowly escaped a recovery scam, a second-strike tactic that's increasingly targeting those who have already been victimized — and it’s happening to Canadians too.

The cruel second wave

Recovery scams, sometimes called refund scams, target people who have already lost money. Instead of posing as investors or romantic partners, fraudsters impersonate lawyers, government officials or investigators who claim they can retrieve stolen funds — usually in exchange for upfront fees (2).

The hook works because victims have already lost significant life savings and are desperate to recover them. The promise of getting everything back is powerful, especially when you don't have time to build your savings back.

The Canadian Anti-Fraud Centre (CAFC) has documented this new, devious strategy. The agency warns that fraudsters have even used its own letterhead and logo to impersonate CAFC investigators — claiming to assist with fund recovery operations while attempting to steal more money instead (2).

"Remember that the CAFC and police will never ask you to transfer funds or make a payment of any kind," its website warns (2).

Fraud is widespread in Canada and it’s costly, as residents lost more than C$638 million in 2024 — with reported losses since 2021 now passing the C$2 billion mark (3). And because only 5% to 10% of fraud is ever reported to authorities, the real total is almost certainly far higher.

For comparison, Americans reported US$16.6 billion (C$23 billion) in scam losses in 2024, according to the FBI's Internet Crime Complaint Center (4). However, the underlying dynamics are the same on both sides of the border: Once someone has lost money from a scam, they become a target all over again.

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Why victims are so vulnerable to a second attack

Scammers often already know details about their victims because criminal groups share or sell lists of people who have been previously targeted. Fraudsters can then impersonate law firms, RCMP officers or other officials to make their approach sound legitimate.

In the Jonas case, the alleged lawyer was impersonating a real licensed attorney, using his identity and bar licence number. The real lawyer only discovered the fraud after a regulatory investigator contacted him about complaints.

Some schemes go even further — building entire fake law firms, complete with professional websites and convincing attorney profiles.

The Canadian Securities Administrators (CSA) warns that new technologies are making these scams increasingly difficult to detect (5). Fraud rings can now make identification documents look authentic, build professional-looking websites and stage convincing video calls using AI-generated images or stolen identities.

In many cases, criminals also exploit unsuspecting victims using search engines and social media. They advertise fake "fund recovery" services, so when victims look for help online, the scammers appear at the top of search results.

And older Canadians face the greatest exposure to these sophisticated tactics. Seniors lost almost 40% of the total amount stolen by scams in Canada in 2024, according to federal government data (6) — despite accounting for a fraction of the population. Jeff Horncastle, a fraud expert and spokesperson for the CAFC, says AI has made the threat harder to recognize.

"AI is playing a huge role in fraud," he warns. "I hate to use the word 'scary,' but it's so difficult now to know what's real and what isn't."

Red flags to watch for

The CAFC identifies several warning signs that a supposed "recovery" offer is actually a scam (2):

• Lawyers or legal firms you have never contacted reaching out to you
• Requests for payment via cryptocurrency, gift cards or wire transfer
• Pressure to join secret group chats, pay third-party fees or act immediately
• Refusal to show verifiable credentials or appear on a live, unscripted video call
• Claims to be from the CAFC, RCMP, Canada Revenue Agency (CRA) or other government bodies who have recovered your funds

How to protect yourself

Verify the lawyer independently

Every province and territory in Canada has a law society that maintains a public directory of licensed attorneys. The Law Society of Ontario (LSO), the Law Society of British Columbia (LSBC) and similar organizations across the country have a directory where anyone can find a lawyer's current status, licensing information and any disciplinary history for free (7) (8). If someone claims to be a lawyer, check with your relevant provincial or territorial organization — do not blindly trust the credentials you were given by the people claiming to help you.

Watch out for unsolicited outreach

Legitimate law firms and government agencies don't contact fraud victims out of the blue offering to recover stolen money. The CAFC will never call you to initiate a fund recovery operation.

Be alert to upfront fees

Recovery scammers often demand large advance payments described as "investigative costs," "filing fees" or "release taxes" before they supposedly deliver recovered funds. No legitimate legal or government agency works this way (9).

Avoid accessing links and unfamiliar forms

Fraudsters may direct victims to fake websites built to collect personal data or payment information. Always refer to official government or law society websites rather than clicking links in unsolicited messages.

Report suspected scams

Victims and potential victims should report incidents to the CAFC online at antifraudcentre.ca or toll-free at 1-888-495-8501, and to your local police. Even if you didn't lose any money, reporting helps investigators track fraud trends and may protect others.

For families like the Jonases, the experience continues long after disconnecting from the scammers. Even after changing phone numbers and deleting messaging apps, Nick Jonas still receives messages from fraudsters — some of which included images of his father's driver's licence.

He now blocks and reports them, even when they arrive several times a week.

Once someone has been targeted, scammers may keep trying. And for victims who have already lost so much, the promise of getting their money back can be the most powerful trap of all.

What Canadians should do next

If you or someone you know has been a fraud target — or is approached with a recovery offer — here are immediate steps to take: