The fast development of blockchain technologies has significantly influenced our world. Among other benefits, we’ve got new payment tools that many people use daily. Cryptocurrencies are the future of the financial sector, and those who understand this are actively investing in these digital assets.
Unfortunately, this progress also has a downside. Every year, scammers steal nine-figure sums using traditional and sometimes creative ways. Due to the decentralization, it may seem impossible to return lost assets, but that’s not true. Today, there are many ways to help victims of crypto scams. If you want to be informed or need help, you will find a lot of useful information in this article.
Types of Crypto Scam
Every year, new scam projects attract the attention of cryptocurrency holders. Luckily, they mostly look like schemes and methods that have been used in the stock market for years. Having become familiar with the signs of these schemes, you will be able to select projects for investment and avoid dishonest counterparties more carefully.
Ponzi Schemes
One of the oldest methods of financial fraud is money pyramids. They are also called Ponzi schemes. In the 20th century, scammers used them by issuing securities, and today, this scheme is actively used in the crypto market.
Its essence is simple: investors are promised huge profits, which are paid at the expense of future investors. A constant flow of users provides the opportunity to pay dividends at the initial stages of the project. However, investors are not infinite, and these schemes always fail.
When the pyramid collapses, the organizers withdraw funds and disappear. A Ponzi scheme can take many forms, making it more difficult to detect. Often, scammers combine several methods of deceiving users, which we will discuss below. Although it can be challenging to recover stolen cryptocurrency, there are successful cases of returning lost funds.
Fake ICOs
The launch of a new cryptocurrency often promises investors good profits. New coins can be bought at a low price and after listing they can be sold for much more. This is true if you deal with solid projects that create real value. However, many ICOs (initial coin offerings) on the Internet are fakes. Founders can create good-looking websites and motivate users to deposit cryptocurrency into their personal wallets. Of course, no one receives any real tokens afterward.
Romance Scam
Romance scams have always existed. Unfortunately, there are still many victims of such manipulations. Trustful users of dating sites meet potential partners online, and a romantic relationship may start. The correspondence can last a long time, but in the end, scammers may ask for money for some of their needs (a wedding, a gift, an airplane ticket, etc.). The victim makes a transfer in cryptocurrency, and the scammer disappears.
Pump and Dump
This scheme is based on the phenomenon of FOMO — fear of missing out. Fraudsters create an aggressive advertising campaign on the Internet and announce that the price of some assets will rise rapidly. Often, they manipulate facts, talk about false insider information, or publish false reports.
The basis of this method is the mass purchase of certain coins by the founders. If the token’s capitalization is small, criminals can significantly influence the token’s price. Seeing that the asset is growing, users begin to actively buy it and “pump up” it even more. As soon as this happens, fraudsters quickly sell their coins, and the price instantly drops.
Fishing
Fishing is the creation of fake links that look like real ones. Fraudsters build fake websites that exactly copy the design of the original and send emails on behalf of well-known companies. Users can follow the links in these emails and enter their details (for example, a key to a crypto wallet). After this, attackers gain access to your account and transfer funds to their wallets.
Recognizing Crypto Scam
If you have become a victim of a crypto scam, the methods we describe below can help you. However, it is better to prevent such situations and not lose your funds. Be careful and skeptical when choosing investment projects, study white papers and carefully check the team. The following red flags may indicate the possibility of fraudulent activity:
- The promise of significant profits without risk. Inexperienced investors may make emotional decisions when they see a project promising 10X, 30X, 50X, or even more. Unfortunately, such projects often turn out to be scams.
- Lack of transparency. It is normal practice for blockchain projects to publish detailed reports on their activities, team information, road maps, and other details. If the site does not have detailed information about the project, this is a reason to think twice about investing.
- The calling to make a quick decision. If you see statements about the urgency of the purchase and the closing of the opportunity in a few hours, you should carefully evaluate the investment option. Perhaps you are being manipulated.
- The requirement to leave your personal data, which is especially true for passwords and private keys.
If any of these signs are present, carefully study the project, look at reviews, and be very careful before investing in it.
How to Recover Your Funds?
The process of returning digital assets can be quite complex, but you shouldn’t give up. Both private companies and government services will be able to help you. While there is no 100% guarantee, the sooner you take action, the better chance you have of getting your money back. Let’s figure out what your options are.
Contact an Advisory Service (RSB)
Cryptocurrency scams have spawned an industry that helps victims of such crimes. One of the most experienced representatives in this field is Report Scammed Bitcoin (RSB) crypto recovery. This company provides a range of services to individuals and organizations. Through its connections with government agencies, exchanges, lawyers, and financial institutions, RSB quickly carries out the actions necessary to locate, block, and recover illegally obtained assets.
The main advantage of this company is that it knows all possible scenarios and prevents useless or even harmful steps. You receive comprehensive advice and act as accurately and quickly as possible, in accordance with the details of your particular case.
RSB offers various forms of cooperation — from free consultations to full management of your case. They are ready to help regardless of the amount of money stolen from you. You can contact the company’s specialists 24/7 and always count on expert advice.
Contact Authorities and Legal Advisors
The obvious step when confronted with scammers is to contact the police or a lawyer. These agencies are supposed to protect citizens and must accept your application. At the same time, it is essential to document the case as much as possible and provide comprehensive evidence of the offense committed.
The advantage of this method is that law enforcement agencies have databases of cybercriminals and, if lucky, can quickly identify a fraudster. Contacting a law firm also makes sense. Experienced lawyers working in this area know the legal specifics of such crimes and know how to protect your rights.
Contact the Exchange
Sometimes, it is possible to return stolen cryptocurrency without law enforcement agencies or legal proceedings. Simply contacting the support team of the exchange through which the fraudulent transaction was carried out can help. The exchange may freeze assets until the circumstances are clarified and provide more complete information about fraudsters. In addition, you can contact the exchange employees much faster — within a couple of minutes, while contacting private or government organizations takes much longer.
Use Blockchain Analysis Tools
The use of modern technologies is not a replacement for the above methods but a complement to them. Blockchain analysis tools can help effectively track stolen funds and identify the criminals. Today, it is almost impossible to solve digital asset crime without technology. That is why law enforcement agencies and private companies actively use them to combat fraud.
The Importance of Proper Documenting the Case
Whichever recovery method you choose, you will need to carefully document your case. Every detail can become essential and affect the final result. So, if you encounter a scam, here’s what you should do:
- Save all information about your interactions with scammers (take screenshots of correspondence, transactions, receipts, etc.).
- Save emails, web addresses you went to, and any identifiers that can help track your funds.
- Record the time of each operation and create a complete chronological order of events.
- Save the websites you visited — scammers can quickly delete them.
- If you have met with scammers in person, collect evidence of these meetings, recordings from video cameras, etc.
Of course, you can first contact the exchange support service, then text a company that specializes in the return of stolen funds, and only then start collecting the data. Every minute is important, so it’s better not to delay contacting professionals. An impressive folder with evidence of fraud is a big contribution to the successful resolution of your case.
Bottom Line
Every year, the number of victims of cybercrimes is growing. Fortunately, it is possible to recover your lost funds. The faster you react and the more information about the fact of fraud you save, the greater the likelihood of returning the cryptocurrency to the wallet of the rightful owner.
Regardless of how you were deceived, you have several options (which, however, can be combined). So, you can contact a private company to solve such cases — Report Scammed Bitcoin. Experts will advise you and help you with further actions. In addition, you can write a statement to the police or contact a lawyer.
If a fraudulent transaction has occurred on a crypto exchange, you must notify the support team as soon as possible and initiate blocking of funds. Despite the anonymity and decentralization of many cryptocurrencies, modern technologies make it possible to return them. To do this, you need to act quickly and cooperate with professionals.
