Some of the crypto recovery services that are out there are a scam. Here’s how to make sure you don’t get scammed twice when trying to get your money back from a crypto scam.
If you’ve been the victim of a scam, you know that you’d do just about anything to recover your lost funds. For one California man, this meant enlisting the help of a “crypto recovery specialist” after being scammed out of Ether currency during an elaborate scheme on YouTube.
But months later — and after paying the “specialist” the equivalent of more than $20,000 in fees
- the victim had to face a hard truth: He’d been scammed yet again.
Cryptocurrencies have become lucrative targets for con artists, hackers, and scammers. Depending on what source you believe, cryptocurrency scams cost victims anywhere from $1 — 14 billion in 2021 alone.
Unfortunately, scammers aren’t content to just steal your crypto assets. A new breed of fraudulent “crypto recovery services” and “fund recovery agencies” prey on victims by promising to recover their lost assets — but steal even more from victims instead.
So, how can you spot a crypto recovery scam? And is there any way to recover lost or stolen crypto and digital currencies legitimately and safely?
In this guide, we’ll explain how these crypto recovery scams work, how to spot the red flags of a scammer, and what to do if you’re the victim of a crypto scam.
to have backdoor access to an exchange via “connections” or some hacking capability that will enable them to track down whoever scammed you and return your money. This is all a lie.
- They ask for your passphrase or other sensitive information. If someone asks for this kind of information, it means that they are trying to steal your identity or gain access to your accounts.
- They ask for your bank account or crypto wallet password and details in order to deposit your “recovered” crypto. As above, a scammer will ask for access to your bank or crypto wallet in an effort to steal more funds from you.
- They don’t list a physical address, or the company is located outside of the
United States. Scam companies often don’t list a business address. If they do,
it’s usually outside of the United States, isn’t a real address, or doesn’t look like a real place of business. In these cases, it’s safe to assume that it’s a fraudulent business.
- They don’t have a phone number, only communicate via messaging platforms, or have an unprofessional email address. A legitimate business person will be happy to discuss their services over the phone and are unlikely to conduct business via apps like Telegram, WhatsApp or Gmail. These apps are generally used by scammers to maintain anonymity and avoid the chance of being caught by law enforcement agencies.
Watch Out for:
If you’re the victim of a cryptocurrency scam, it’s unlikely that you’ll ever see your crypto again. However, there are steps you can take to improve your cybersecurity, prevent future scams, and maybe recover your lost crypto.
Report the scam to your crypto exchange
By providing your exchange with important details about the scam, they may be able to identify the scammers and prevent them from perpetrating future scams.
In rare cases, they may be able to freeze the perpetrator’s account and potentially return the stolen crypto.
Include as many details about the scammers as you have, such as how and when the scam took place and any transaction identification (TXID) codes. The TXID hash provides critical information about the time, receiving address, amounts, and more.
Report the scam to the relevant authorities
Reporting scams to government agencies helps catch scammers and prevent future fraud from happening. These agencies might also be able to help you protect or recover your assets.
You can report scams to any of these 5 organizations:
| Proactive digital security — including antivirus software, a virtual private network (VPN), password manager, and protection against phishing, malware, spyware, and ransomware.Top-rated identity theft protection that warns you if your online accounts, SocialSecurity number (SSN), driver’s license, or other sensitive information have been compromised.Credit monitoring that alerts you in near real-time about changes in your credit score or suspicious transactions on your bank and credit card accounts.24/7 U.S.-based fraud resolution specialists who are available to help you via phone and email.$1,000,000 crypto insurance coverage for eligible losses due to identity theft. | ||
| Are You a Victim of Crypto Scam? Take the Right Step to Recover Your Crypto from the Scammer Right Away by Making a Report at – Report Scammed Bitcoin(RSB). | ||
