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Crypto Scams are becoming more and more frequent as Crypto Scammers are focusing on gaining new clients through social media. It is more difficult to recover funds if you paid using cryptocurrency but there is still hope. Here is an understanding of the Crypto world and what you can do to recover your money.
The truth about cryptocurrency
Investors have become increasingly optimistic about the whole blockchain phenomenon and some are going as far as to predict that people will be paying solely with their bitcoin wallets as soon as 2030. Unfortunately, with every great invention, there is always a downside. The problems creeping up into bitcoin payments has been the inability to trace or recall a payment once the payment has been issued. For instance, if you paid the wrong person using bitcoin, it is impossible to recall that payment and the money you paid is usually lost forever. Trading scammers have caught onto this fact and are getting clients to buy a cryptocurrency and then transfer the crypto to a trading platform.
What exactly do the scammers do?
A person will get a random call from a broker saying that he can make a 30% return every single week trading Forex. All he has to do is open a Luno account; a crypto wallet that enables you to store various cryptocurrencies such as bitcoin, and buys 200$ worth of bitcoin and then sends it to a particular trading platform to start making some money. Once you deposit the cryptocurrency you might find yourself unable to access your trading account, or, even if you are able to access your account, they do not let you withdraw your funds. These trading platforms sometimes claim that in order to withdraw your funds you need to first deposit an additional 200$ in order to start the withdrawal process. why would you have to give someone more money in order to withdraw money that you put there in the first place?!
Why paying with crypto makes it very difficult to recover your fund and how a crypto transfer differs from a bank transfer
The way the algorithms work behind crypto is each cryptocurrency has a special code and once you transfer that ‘code’ to someone else it is almost impossible to retrieve it. You are not transferring money or anything tangible to the trader, you are transferring the code into someone else’s account and it now becomes his.
When you do a bank transfer to someone, the bank has that transfer on record and can recall that exact transfer to your account if they want. Cryptocurrency works differently. When you buy crypto, you get a specific code and when you transfer this code it is impossible to trace. The only way to get your money back is if the company decides to offer you a refund. The refund that they give you is not the initial cryptocurrency that you gave them, rather they will give you cash with the same value of the crypto you lost.
But, you can still try to get your money back. Here’s How
1. CONTACT THEM
Send a letter to the trading platform that took your cryptocurrency telling them if they do not return your money that you will report them to the financial authorities. While this can’t guarantee that they will give you your money back, when followed by action, your efforts could pay off.
2. REPORT THEM
The next step is, of course, to actually report them to the relevant financial authorities. For an easy reference guide on how to report them click here
(Reporting a scam should always be done, whether or not you can get your money back, if you’ve confirmed your fears and there is no explanation for why they haven’t given your money back or allowed you to withdraw from your account it is yours and every individual’s responsibility to report criminal activity to the government so that the government can take action.)
3. GET CREATIVE
There are many ways in which a private investigator may go about finding information for a case. If you’re intent on getting your money back, you may ask yourself, have I exhausted all options in getting my money back, what if it was a million dollars? Would I throw in the towel now? Start by publicizing your story online in any way you can. For example, post the name of the broker on Facebook or Reddit to see if there are others who have information on this company or any clues as to how you could get your money back. This may also help prevent others from falling prey to the scam as well.
4. NOTIFY YOUR CRYPTO WALLET PROVIDER
Contact your crypto wallet and notify them that the company you paid is a scam and is refusing to give your money back. This will raise awareness and ultimately jeopardize the scams relationship with the crypto wallet which may also help prevent others from being scammed.
5. SEEK LEGAL COUNSEL
While this may not be an option for many as lawyers fees can often exceed the amount of the money lost. However, there are scenarios where legal advice may help point you in the direction of steps that you could take to pursue the crypto scam company.
6. GET INFORMED.
This can’t really be stressed enough, hopefully, your losses are relatively small in which case the best way to get your money back is by taking your experience as an expensive lesson and learn how to not scammed again. This way your hard-earned money stays under your watch and discretion (which you should improve by reading this Get Informed Now!).
IMPORTANT: A CRYPTO SCAM BUT I PAID WITH CREDIT CARD
We’ll go ahead and make another article regarding this scenario, but it can vary greatly from when you sent crypto coins to a wallet. In many cases when a credit card or debit card was used, a chargeback process can be started and the chances of getting your money back can be significantly increased.
In closing, transferred Bitcoin or any cryptocurrency to a Crypto scam or even to a Forex or Binary scam can be arduous and may seem hopeless to the average individual working without expertise. However, by putting in the efforts listed above you can at least rest easy knowing that you did everything you can to try and get your money back and to be prepared the next time you are targeted or seduced into something that’s too good to be true.
Fund recovery companies are often able to recover money from scams using tactics
future investment planning
very similar to the ones listed above. In situations where Bitcoin or Crypto was used as well as cases where a credit card or debit card has been used and a chargeback can be pursued, the guidance of a professional can go a long way and could be the deciding factor between getting your money back and it being lost forever.
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