What is advanced fee fraud?

Summary: In this article, you will read what advanced fee fraud is, how this type of scam works, and which tricks scammers use to make it appear reliable. We explain how fake wallets, blockchain explorers, and fake tokens are used, and what the difference is with a recovery scam.

What is advanced fee fraud?

Advanced fee fraud is a form of scam where you are told that money or crypto is registered in your name, but you must pay an amount first to receive it. This is also known as upfront payment fraud.

You are told that:

• funds have been found for you;
• these funds are locked on the blockchain;
• they must be released before you can access them.

In reality, these funds do not exist, or they do not belong to you.

How do scammers try to make this credible?

In advanced fee fraud, a lot of effort is often put into making the story seem real.

Supposed creation of a wallet

The scammer claims that a wallet has been created specifically for you containing the money or crypto. You sometimes receive a wallet address, screenshots, or other "proof."

Use of blockchain explorers and trackers

Reference is made to a blockchain explorer or tracker to show that the funds exist. This can give the impression that the money is really in your name.

However, a blockchain explorer only shows transactions and wallet addresses. It does not show who owns the money.

Use of fake tokens

Often, fake tokens are used that have no real value. These tokens are only used to show a high balance and build trust. You can read more about this in this article: Fake token scam.

When is a payment requested?

Once you seem convinced, you are asked to pay costs upfront, for example for:

• administration;
• taxes;
• "gas fees";
• releasing or unlocking the funds.

After payment:

• the scammer disappears, or;
• you are told that an additional payment is required.

This can be repeated multiple times.

Difference between advanced fee fraud and a recovery scam

Advanced fee fraud is sometimes confused with a recovery scam, but the premise is different.

Advanced fee fraud

• You are told that money or crypto is in your name.
• There does not have to be a previous scam.
• You must pay in advance to receive the funds.

Recovery scam

• You have previously lost money or crypto due to a scam.
• Someone claims to have found it.
• Here too, you must pay first.

In both cases, you ultimately receive nothing.

How do you recognize advanced fee fraud?

Pay extra attention if you see one or more of these signs:

• you are approached unsolicited;
• there is talk of "found" or "locked" money;
• a wallet or blockchain explorer is shown as proof;
• you must pay first to receive money;
• the story sounds technical and urgent.

What should you do if you encounter this?

• Do not make any payments.
• Do not share personal details.
• Do not share private keys or recovery phrases.
• Stop contact.
• Save the communication as evidence.

Bitvavo will never approach you with a request to pay costs in advance to release funds.

Frequently Asked Questions