Why Hiring a Lawyer after an Online Scam is (usually) a Bad Idea

Being scammed is devastating.

It’s natural to feel angry, embarrassed, and determined to get your money back. Hiring a lawyer can feel like taking control of the situation, but is it really worth it?

The truth is, legal action against scammers is often expensive, time-consuming, and emotionally draining—with no guarantee of success. Legal fees can quickly pile up, and the chances of actually recovering your funds are slim, especially when scammers operate in ways that make them almost untouchable.

Even worse, some victims end up falling for secondary scams from so-called recovery firms (often pretending to be a lawyer or “fund recovery firm”).

If you’re considering legal action after falling victim to a scam, it’s important to know the risks, costs, and alternatives that might save you time, money, and stress.

First: Is the Lawyer just another scam? Risk of Secondary Scams

Scam victims are often targeted a second time by fraudulent recovery services. These so-called “asset recovery firms” promise to retrieve your stolen money in exchange for an upfront fee. Unfortunately, many of these companies are scams themselves, preying on the desperation of victims.

Consider the case of a man who lost $22,000 to a “Forex Trading Scam.” Shortly after reporting the incident online, he contacted a recovery service he found online, which had a website claiming they could recover his funds for a $3,000 fee. Desperate to get his money back, he paid the fee—only to realize later that the recovery firm he “hired” was another scam. He didn’t get the original $22,000 back, he lost another $3,000, and ended the experience feeling even more embarrassed and angry.

The lesson here is clear: be wary of unsolicited offers promising to recover your funds.

Legitimate recovery services typically:
1. Don’t charge a flat upfront fees,
2. Won’t “promise” or “100% guarantee” to get your money back, and
3. Have verifiable credentials, reviews on Google/BBB, and/or a physical location.

To avoid falling victim again, stick to established organizations like banks, credit card companies, or government agencies when seeking assistance.

So… let’s say you do find a lawyer who lives in your area, with a physical location, plenty of reviews online, verified credentials, and says they can help recover your money.

What now?

Before you call this attorney, it’s essential to understand your options and avoid ending up in an even worse place.

Using a Layer has High Legal Costs

Hiring a lawyer can be incredibly expensive. Many attorneys charge hourly rates ranging from $150 to $500 or more, depending on their expertise and location. Others might require a retainer fee, a lump sum paid upfront that can run into thousands of dollars. To clarify, they are absolutely right to charge an hourly rate - lawyers do complicated work and deserve to be fairly compensated for this work. However, this fair compensation means it might not be “worth it” for your to pursue legal action against the scammer.

Imagine you lost $3,000 in a Mortgage Insurance Scam. If your lawyer charges $300 an hour, even just a few hours of consultation, drafting documents, or court preparation could cost more than you lost.

Furthermore, complex fraud cases often require specialized lawyers, who tend to charge even higher fees. For many victims, the financial burden of hiring legal help outweighs the potential recovery. And let’s not forget that court filing fees, expert witness fees, and other expenses can pile up quickly.

The unfortunate reality is that seeking justice through a lawyer often becomes cost-prohibitive for average scam victims (especially if the scam was done online - which we will discuss more below).

Instead, victims can explore lower-cost alternatives like reporting the scam to their bank or payment processor, which often have mechanisms to reverse fraudulent transactions. In some instances, even if the bank can’t reverse the fraudulent transactions, as long as you can prove you were scammed, they might reimburse some of the funds. By avoiding high legal fees, victims can focus on practical recovery steps while minimizing additional financial strain.

You and your lawyer have to prove your case (and correctly identify the scammer’s true identity)

One of the biggest challenges in suing a scammer is gathering enough evidence to prove your case. Scammers are skilled at covering their tracks—using fake names, burner phone numbers, and encrypted communications. They often operate in jurisdictions with weak enforcement, move funds across international borders, and use tools like cryptocurrency to obscure transactions.

If the scam was done in-person, you might have photos of the scammer or their ID, making this slightly easier. However, if the scam happened online (like the common Facebook Marketplace Paypal scam), this can be nearly impossible to correctly identify the scammer.

Victims often lack the documentation needed to establish the scammer’s identity, let alone prove their intent.

Jurisdictional issues make things even harder. Many scams are orchestrated from overseas, where local courts have no authority. For example, a woman who lost $8,000 in a fake job scam discovered the scammer was operating from Nigeria. Her lawyer explained that pursuing an international case would involve complex jurisdictional disputes and additional legal fees. With no clear path to justice, she ultimately gave up on recovering her money (and was still out the original lawyer fees).

These obstacles highlight why pursuing legal action against scammers is often a losing battle.

Even if you win, you might not get your money back because of jurisdiction issues

Even if you hire a skilled lawyer, and win the case, recovering your money isn’t guaranteed. You also have locate the scammer’s assets and compel them to pay.

It doesn’t feel fair, but this is one of the realities of the legal system: Legal victory doesn’t guarantee financial recovery.

Legal battles are Time-Consuming and Emotionally Draining

Legal action isn’t just expensive—it’s also time-consuming and emotionally exhausting, particularly for those already reeling from the shock of being scammed. A lawsuit can take months or even years to conclude, with countless delays and legal procedures.

Victims may feel angry, embarrassed, or betrayed, and these emotions can be amplified by the stress of navigating a complex legal system. Victims must relive the scam repeatedly as they gather evidence, attend hearings, and communicate with their lawyer, making it hard to move on or return to their normal life.

A good example is a senior who lost $20,000 in a tech support scam. Determined to recover her money, she spent months preparing for legal action, including gathering evidence, hiring a lawyer, and attending hearings. While the process gave her a sense of control, it also left her emotionally drained and unable to focus on other aspects of her life. Between the back-and-forth with their lawyer, court delays, and the scammer’s evasive tactics, she felt trapped in a nightmare she couldn’t escape. The further she went through he process, the more she felt she “had” to see it through the end or “all that pain would be for nothing.”

Ultimately, the case was dismissed due to lack of evidence, leaving her feeling defeated.

Instead of subjecting themselves to a drawn-out legal battle (where they might not win, and even if they win they might not get their money back), victims might find closure faster by focusing on non-legal recovery methods or just choosing to move on (even if it feels unfair in the moment).

Better Alternatives to Legal Action

Rather than pursuing expensive and uncertain legal action, scam victims have several cost-effective alternatives to recover their funds or mitigate losses.

One of the first steps is contacting your bank, credit card company, or payment platform. Financial institutions often have fraud protection policies that can help reverse unauthorized transactions or initiate chargebacks. For instance, if you were scammed through a credit card, many issuers allow you to dispute the charge within 60 days. Victims of PayPal scams have also reported success in recovering funds by filing a dispute through their platform.

The key here is to take screenshots during the scam and report as quickly as possible.

Another effective option is reporting the scam to consumer protection agencies like the Federal Trade Commission (FTC) or the Internet Crime Complaint Center (IC3). These organizations can investigate scams and, in some cases, work with international partners to recover stolen funds. For example, IC3 recently helped recover millions of dollars stolen in business email compromise scams by collaborating with global law enforcement.

Lastly, sharing your story on scam awareness websites or social media can help warn others and potentially gather useful information. Victims often find solace and support in online communities dedicated to exposing scammers. These alternatives not only save money but also empower victims to take action without the burden of legal costs.

Recovering from a scam isn’t just about getting your money back; it’s about reclaiming your peace of mind. Legal battles might seem like a way to fight back, but they often leave victims feeling drained and frustrated. Instead, consider focusing on solutions that work for you, like contacting your bank or sharing your story to raise awareness.

Personally, I’ve learned that healing comes faster when you focus on what you can control. I’ve met countless people who found strength in reporting scams, warning others, and moving forward with their lives. Resilience comes from taking smart, measured steps. You’ve got this, and brighter days are ahead.