Falling for a cryptocurrency scam can be a disaster, but you can still fight to get your bucks back- only if you act immediately. For the brief details, stay on this guide!
According to the Federal Trade Commission (FTC), crypto scams led to losses exceeding $1 billion in 2023 alone. The typical frauds include fake platforms, phishing attacks, and fraudulent recovery scams.
Frauds like this are rising with each passing day, and recovery funds scams exploit victims pretending to help retrieve funds only make matters worse. Knowing what steps to take increases the chances of recovering lost funds without getting scammed again.
Steps to Recover from a Cryptocurrency Scam
Here are the recovery steps from a scam:
- Identify the Type of Scam You Fell For
Before jumping into action, determine how exactly you were tricked. Different cryptocurrency scams would have different kinds of recovery mechanisms.
- Bitcoin Fraud – Fake exchanges or wallets that accept money when deposited.
- Bitcoin Code Scam – Bogus trading robots with unrealistic returns. (fca.org.uk)
- Phishing Scams – Email or fake sites that steal login information.
- Recovery Scams – Bogus businesses that accept advance fees to “recover” stolen money.
- Gather All Relevant Evidence
Having valid evidence improves the chances of recovery of funds. The more information you provide, the better your case will be when you report fraud.
- Transaction data – Wallet addresses, timestamps, and transaction IDs.
- Communication records – Messages, emails, or call logs with spammers.
- Screenshots – All promises, misrepresentations, or advertisements.
- Report the Scam to Authorities
It is simpler to track fraudsters after reporting the fraud to the proper authorities. Regulating authorities actively seek out Bitcoin fraud in most cases.
- Federal Trade Commission (FTC) – Consumer cases of fraud. Report ReportFraud.ftc.gov.
- Internet Crime Complaint Center (IC3) – Reports internet financial crimes. Report at ic3.gov.
- Securities and Exchange Commission (SEC) – Investment fraud.
- Local Law Enforcement – Cybercrime departments can assist in criminal investigations.
Others get their money back when police freeze accounts for scams.
- Contact Your Crypto Exchange
If your money was stolen from an exchange, report the scam right away. There are some exchanges with fraud investigation departments that can track suspicious transactions.
Example: Coinbase and Binance both have dedicated fraud teams that assist the fraud victims.
- Avoid Fake Recovery Services
Money-loss victims are subsequently targeted by recovery scams. They claim to recover your money but charge upfront fees.
Deception victims of fake recovery companies, the FTC states, lose a projected $3,000–$5,000 per case (FTC Scam Alerts).
Check any recovery company on reputable sites such as Report Scammed Funds, which assists victims in verifying if a financial recovery company is legit.
How to Prevent Future Cryptocurrency Scams
Check out the below-stated points:
- Research Before Investing
Check the legitimacy of any cryptocurrency platform before sending money. Remember, if a scheme sounds too good to be true, then it is. If a company guarantees high returns with little to no risk, be wary.
The FCA (Financial Conduct Authority) also suggests checking the jurisdiction and regulatory licenses before investing your hard-earned money to avoid FCA guidelines.
- Use Cold Wallets for Storage
Cryptocurrency exchange wallets make you vulnerable to hacks when you store large amounts. Thus, storing your cryptocurrency in a hardware (cold) wallet provides a better and more secure option.
According to the Cybersecurity and Infrastructure Security Agency, cold wallets reduce the risks of theft by 90% (CISA Crypto Security).
- Enable Two-Factor Authentication (2FA)
Weak security is a goldmine for many scammers. By enabling 2FA on exchanges and wallets, you add a level of protection.
99% of automated hacking attempts are blocked through 2FA and this was studied by Google Security.
- Stay Updated on Fraud Trends
Scammers are always changing their tactics, which makes it essential to follow reputable sources like the FTC and crypto security blogs to stay ahead.
Take IMMEDIATE action to recover your funds.
If you’ve been scammed, do not lose hope. You need to act fast to cover the most ground. Report the scam and seek professional help but ensure you do not fall victim to more fraudulent attempts.
CTA: Looking for a reliable service that will help you report and recover your lost funds? Get in touch with Report Scammed Funds right away to check and recover your funds using the best available strategy.
FAQs related to Recovery Funds Scam
- Can I recover my Bitcoin?
Yes, but recovery depends on how the scam occurred. If the funds are retraceable, there may be legal or other investigative means available.
- Are cryptocurrency recovery scams real?
Yes, many services pretend to help users recover funds, but often, they just end up stealing more money.
- How do I know a crypto platform is a scam?
Check if they have regulatory licensing, user complaints, and reviews from third-party sources. Stay away from sites that offer excessive returns.
- Can the authorities track cryptocurrency that has been stolen?
Yes, they can track stolen funds through blockchain analytic tools such as Chainalysis, but recovery is contingent on legal proceedings.
- What should I do first after falling for a crypto scam?
File an immediate report, lock the remaining funds, and don’t contact the so-called recovery scammers. Seek other professional advice if necessary.
