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Best Ways to Recover Funds from a Crypto Scam in 2024

kokou adzo

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A crypto scam is any illegal scheme that involves stealing your digital currencies/crypto assets. This could be through fake investment, phishing, blackmail, Ponzi schemes, fake exchanges, and so on. The growing allure of cryptocurrency has attracted the attention of scammers in the digital realm.

Crypto scammers employ illegal schemes such as phishing, blackmail, Ponzi schemes, fake exchanges and more to steal your digital assets. In fact, crypto scammers managed to steal a staggering $16.57 billion in the last 2 years. Thankfully, organizations such as Report Scammed Bitcoin (RSB) are putting an end to this financial fraud/fraudulent activities and helping crypto scam victims to recover funds from cryptocurrency scams.

4 Common Examples of Crypto Scams to Avoid in 2024

Ponzi Scheme: This crypto scam usually begins with a convincing pitch. It is offering an opportunity to earn big profits in a short amount of time. But usually, the returns promised to early investors are paid using the funds of new investors, and the whole scheme eventually collapses when the flow of new investors stops.

Phishing Scam: This crypto scam is all about tricking individuals into giving up their valuable information, such as passwords and bank details. They pretend to be trustworthy. Phishing scams can target crypto exchanges, wallets, or even individual users. So always be on the lookout for anything that seems too good to be true, since crypto scammers keep advancing.

Cloud Mining Scam: This crypto scam lures unsuspecting investors with promises of huge profits by investing in cloud mining operations. You simply rent mining power from a company to mine cryptocurrencies and watch the profits roll in. However, many of these companies are nothing more than frauds. They just wait to make a quick getaway with their clients’ hard-earned investments.

Romance Scam: Also known as “Pig Butchering” creates fake online profiles to pose as someone they are not, usually someone attractive and wealthy. They use this fake profile to build a relationship with the victim, often over a period of time. Once the scammer has gained the victim’s trust, they will start to ask for crypto for various reasons.

RSB's Investigation Into Crypto Market and Crypto Scam Recovery

Crypto Transfer Analysis: RSB starts the cryptocurrency scam recovery process by examining the narrative of events and the timeline of the scheme. Then, crypto recovery experts will analyze the available data & trace your virtual assets. This process helps us identify the exchange wallet address with a digital forensic investigation.

Digital Forensic: RSB will perform open-source intelligence (OSINT) to extract data, and analyze said data using digital forensic services from millions of data points on the Blockchain.

Identifying the Scammer: The crypto recovery experts will try to trace the scammers by attacking their devices directly. With the help of zero-day vulnerability, They can trace their IP, location, and true identity.

Crypto Recovery Process: Crypto Recovery Expert will hunt down the scammers and ensure they return your digital assets to you. You can count on RSB to recover your lost cryptocurrency. They will even alert law enforcement and regulatory agencies if necessary.

Documentation: Everything is then summarized into a formal investigation report.

How do I protect myself from falling victim to crypto scammers?

Protecting yourself from a crypto scam is not that difficult. Unfortunately, most investors do not perform enough research about the risk and volatility of the cryptocurrency world. Staying updated with the latest cryptocurrency trends and learning about the crypto market will help you to be aware of emerging scams and their red flags. Notice every transaction on your crypto wallet, never share your private key, and use strong passwords to protect your crypto assets from cybercriminals.

Why People Choose Crypto Recovery Experts at Report Scammed Bitcoin - RSB Reviewed

  • Best Crypto Recovery Experts: We have highly skilled cybersecurity & blockchain investigators specializing in only cryptocurrency scam investigation and crypto wallet recovery.
  • Safe and Secure: Crypto Recovery Expert operates globally, helping crypto victims from USA, UK, Australia, Singapore, Germany, Denmark, Hong Kong and other parts of the world. We will be transparent with you about everything from the beginning until the end of our crypto recovery services.
  • Satisfied Clients and Proven Track Records: We have helped recover stolen cryptocurrency worth millions of dollars for clients who got scammed just like you

Other Ways of Crypto Scam Recovery

  • In addition to Report Scammed Bitcoin (RSB), let us take a look at some other possible options that may be explored for a successful crypto scam recovery

Report the Scam to the Government

  • If you are a US resident or citizen, you can also report the scam to several different agencies such as;
  • the Federal Trade Commission (FTC) at ReportFraud.ftc.gov
  • the Commodity Futures Trading Commission (CFTC) at CFTC.gov/complaint
  • the U.S. Securities and Exchange Commission (SEC) at sec.gov/tcr
  • the Internet Crime Complaint Center (IC3) at ic3.gov/Home/ComplaintChoice

Report the scam to any Exchanges or Wallet Providers Involved

If you used an exchange, like Coinbase, to fund an account and then send those funds to a scammer, you should notify the exchange. The most sophisticated of these exchanges may look for patterns and be able to prevent other people from falling for the same scams.

Coinbase has requested that people contact them about scams at this email address: security@coinbase.com

Kraken has published a page for reporting phishing incidents. This is probably your best approach to report a scam.

Paxful says: “report it to our support team or file a dispute so we can start the investigation immediately and recover your Bitcoin if there’s sufficient evidence.”

If you are a US resident or citizen, you should report the scam to several different government agencies:

Discover vital information for crypto scam recovery

For the crypto scam recovery process to be successful, it is important to carry out a comprehensive analysis. This involves making use of some important and vital information about the crypto, which would be useful during the recovery process. Below are some of the important information that comes in helpful during the funds recovery process;

Attributions & associations

Blockchain intelligence software can gather ownership attribution details for analysis. While this information rarely reveals the personal identities of individual offenders, it can highlight key associations with criminal organizations or fraudulent schemes.

Address clusters

A cluster is a set of cryptocurrency addresses managed by the same user or group. By widening the investigation to encompass multiple addresses, our cybercrime specialists can gather more evidence for successful crypto scam recovery.

Verification details

Many VASPs, cryptocurrency exchange platforms and decentralized finance firms demand identity verification information when creating accounts. If a scammer has used such services for cryptocurrency dealings, this personal data can be accessed with a civil subpoena or criminal warrant with the aim of crypto scam recovery.

IP addresses

Blockchain surveillance systems can collect metadata to look out for IP addresses linked to specific payments. An IP address may shed light on the fraudster’s physical location when a given transaction was made.

Transaction volumes

The total value of cryptocurrency transactions can indicate the scale of a scam. Due to the number of victims targeted, the more extensive or larger schemes may warrant a class action lawsuit in civil Court, as well garner more attention from media and law enforcement officials.

Risk profiles

Advanced algorithms may be used to perform automatic risk profiling that tracks the activity of a cryptocurrency address. Any interactions with certain entities, such as peer-to-peer exchanges or ransomware rings, will be flagged.

Total address values

The amount of assets held by an offender’s cryptocurrency address can be a vital piece of information for successful recovery. A high-value address may be subject to a seizure warrant in criminal Court or a Freezing or Garnishee Order in civil proceedings for crypto scam recovery.

Tracking down assets

The goal of cryptocurrency tracing is to find your stolen assets and the offenders who swindled them. Although blockchain transactions are anonymous, the wallet address used by the offender to cash out is not.

To identify this pivotal information for crypto scam recovery, our investigators leverage tracing software to follow funds through a web of online transactions. Along the way, we will detect suspicious trends, sidestep decoys, and uncover key associations with criminal operations. This meticulous process demands considerable time, resources and prowess.

Identifying cryptocurrency scammers

Once we’ve pinpointed the wallet address, it’s time to identify its owner. Some exchanges will fulfill a request from our investigators to share the wallet holder’s identification. However, most exchanges require this request to come directly from the police. Therefore, you will need to ask your local police station to email the relevant exchange.

As this is a relatively young type of crime, police responses can differ by jurisdiction, station, and officer. To make this process as effortless as possible for the police, we can provide a draft request letter.

See RSB Crypto Scam Recovery Process at Work

If you have fallen victim to a crypto scam, it is important to understand that the crypto scam recovery process begins with crypto tracing. This identifies payment paths on the blockchain technology. This critical first step helps to locate crypto assets so that they can be frozen until recovered through crypto scam recovery.

The specialized recovery process uses advanced algorithms and in-depth data analysis to track the movement of stolen funds on the blockchain, potentially unveiling the identity of the scammers​​. This method relies on the transparent nature of blockchain technology, where every transaction is recorded and traceable.

Report Scammed Bitcoin (RSB) crypto recovery process involves the following 4 steps;

  1. Report the scam on Report Scammed Bitcoin (RSB) website
  2. Provide adequate information about the scam. Such as; transactions I.D., scammers involved, how the scam started etc
  3. RSB puts their technical expertise and resources to use in tracking down and recovering the lost crypto assets
  4. Your recovered funds are safely returned to you, and you are happy again

Kokou Adzo is the editor and author of Stri.us. He is passionate about business and tech, and brings you the latest Startup news and information. He graduated from university of Siena (Italy) and Rennes (France) in Communications and Political Science with a Master's Degree. He manages the editorial operations at Stri.us.

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