Recovery scams

Is this refund processing fee scam a scam?

Likely scam High risk Email, Phone

Commonly seen since 2023. Last reviewed 2026-06-05.

Check your exact message

Example only - do not act on it

Example only: Your refund is approved. Pay a small processing fee to release the funds to your account.

Why this message is suspicious

Real refunds are not unlocked by paying a fee first.
'Pay to receive' is the giveaway.
Often follows a fake overcharge or subscription email.

What the scammer wants

An upfront 'fee' to recover money or release a prize you'll never get
To re-victimise someone who already lost money
Personal and banking details under the guise of 'processing'

Common variations

Example only: A handling charge is required before we can send your refund.
Example only: Verify with a small payment to receive your larger refund.

Red flags to watch for

Payment Request Upfront Fee Fake Authority

What to do now

Stop - no one legitimate asks for an upfront fee to return your money or release a prize.
Check with your bank and your official cybercrime authority; real refunds and recoveries never require an upfront fee paid to a stranger.
Do not pay 'processing', 'legal', or 'release' fees.
Report the original loss and this approach to your cybercrime authority; legitimate recovery never costs an upfront fee.

What not to do

Do not pay under pressure, secrecy, or threats.
Do not send gift cards, wire transfers, or crypto to someone you haven't verified.
Do not pay an upfront fee to 'recover' lost money or 'release' a prize.
Don't blame yourself or a loved one - these scams are designed to deceive anyone.

If you already responded

Act quickly - the sooner you respond, the more you can limit. Find the situation that matches what you did:

If you clicked a link: Close any page; don't enter card, login, or personal details.If you entered details, treat them as compromised and tell your bank.Expect follow-up pressure - it's part of the scam.

If you paid: Contact your bank or the gift-card/payment provider immediately to try to stop it.Report to your national cybercrime authority with all evidence.Beware 'recovery agents' who appear afterwards - that is a second scam.

If you shared a code, OTP, or login: Never share a one-time code with anyone, for any reason.If you shared one, secure that account and enable app-based 2FA.Tell your bank if it related to a payment or login.

If you only clicked the link but entered nothing: close the page, don't enter anything, and watch the linked accounts for unusual activity. Full steps →

If you entered card details: contact your bank now to freeze the card and dispute charges, then watch your statement. Full steps →

If you shared an OTP or one-time code: the scammer may be logging in right now - change the password, sign out other sessions, and turn on app-based 2FA. Full steps →

If you sent money: contact your bank or payment provider immediately to try to stop or recall it, and report it. Full steps →

If you installed an app / gave remote access: disconnect from the internet, uninstall it, and change key passwords from a different, trusted device. Full steps →

If you shared passport, ID, or KYC documents: watch for identity theft, consider a credit freeze or fraud alert, and keep the evidence. Full steps →

Watch out for a second scam. People who've just lost money are often contacted again by a fake "recovery" service promising to get it back for an upfront fee. Legitimate recovery never starts with a fee paid to someone who contacted you - see recovery scams.

First time dealing with this? Start with the first 24 hours after a scam checklist and how to save evidence.

How to verify safely

Check with your bank and your official cybercrime authority; real refunds and recoveries never require an upfront fee paid to a stranger.

How to report it

Report through official channels for your country. Use our scam reporting directory to find the right authority, and never use phone numbers or links from the suspicious message itself. If an official link looks outdated, tell us so we can review it.

Official sources checked

Canadian Anti-Fraud Centre - Fraudsters impersonating the CAFC High reliability

Government warning
FTC Consumer Advice - Imposter scams High reliability

Government alert

Reviewed 2026-06-05. See our methodology for how we select sources.

Related platforms

Email scams

Report in your country

Related terms

Frequently asked questions

Do refunds need a processing fee?

No. You never pay to receive a refund. A fee request to 'release' funds is a scam.