Crypto scams and frauds are a growing issue. The “bitcoin scammer list: 2021” is a resource that will help you avoid the scammers.
A crypto scammer may attempt to defraud you of your cryptocurrency. Here are some tips for how to protect yourself if this happens so you can prevent further losses after an initial loss has been taken.
Scams using cryptocurrency are getting more difficult to detect. Even the most seasoned investors might be fooled by fraudsters who use flashy websites and phony endorsements.
Even if you haven’t been a victim of crypto-related crime or fraud, you should still report it since you may be eligible for a whistleblower prize. If you believe you’ve observed crypto crime, here are six things you should do. (Skip directly to number 6 if it’s a serious scam.)
1. Keep your records safe.
You may be asked to produce records of your transactions and conversations when reporting fraud. If you don’t keep your records, the authorities may not take you seriously, and you may lose out on getting cash back to you if you were a victim of fraud. It’s more than just avoiding deleting your emails and text messages when it comes to keeping records.
On addition to keeping them on your mobile device, you should create duplicates of them and save them in the cloud in case your device is lost or stolen. The same may be said for transaction logs. These may be viewable in an online account, but you never know when they may be removed by the firm. Because fraud investigations might take a long time, it’s critical that you have a long-term strategy in place for safeguarding these documents.
2. Get in touch with the company, but never “pay to withdraw.”
If you have a suspicion that something isn’t quite right with a crypto investment, you should contact the firm straight away to make sure it’s not a mistake. You should contact them not just via email and phone, but also through social media platforms, since these might alert others to your difficulties. If the firm answers and asks you to make a payment to withdraw your money, you should not do so.
You will almost certainly lose more money if a fraud or scam is used. You should be able to negotiate the release of your cash without making any more payments if the firm is authentic.
3. Look for allies
Many cryptocurrencies have vibrant online communities that communicate via Reddit, Discord, Telegram, and other platforms. Whether you’re experiencing trouble with a crypto investment but aren’t sure if it’s a scam, reach out to other members of the community to see if they’ve had similar difficulties. While online groups may be a good source of knowledge, be wary of any advise that urges you to spend more to withdraw your money.
As previously stated, this advise should be disregarded. The ideal method to utilize online forums is to discuss your concerns so that others are aware of possible problems, and to form a network of others who are in similar situations so that you can work together to address or report the problems. If you are certain that anything is a scam or fraud, you may use internet analysis systems like Trustpilot to notify others.
3. Submit a report to the local government
If you believe you have been the victim of a fraud or scam, you should alert your local authorities as soon as possible. While your local authorities may not be able to launch an investigation right away, they will have the most up-to-date information on what resources are available to you and who you should report to.
Cybercrime authorities sometimes wait until a lot of complaints about a scam or fraud have been received before opening an investigation, so even if the amount you lost was little, reporting it to these organizations may help generate momentum for an inquiry.
4. Consider reporting to authorities in the United States.
Depending on the size of the scam, it may be beneficial to disclose it to authorities in other countries in order to increase your chances of apprehending the culprits. When it comes to pursuing crypto crime, the United States is the undisputed leader.
Not only does the United States have an online crime complaint center where you may file a complaint, but it also has two more regulatory authorities (the SEC and the CFTC) that investigate and punish crypto-related fraud and crime.
If you are a US resident, you have a better chance of US authorities acting on your information, but even if you are not, there are no limits on non-US citizens reporting to these agencies.
5. Consult an attorney
If you suspect a large cryptocurrency scam or crime, you should contact an attorney who specializes in reporting such crimes.
Attorneys can help you decide where to disclose information and may even report it on your behalf. Importantly, an attorney can help you determine if you qualify for a whistleblower compensation. If you disclose fraud to certain US authorities, you may be eligible for a whistleblower prize.
This covers non-internet crimes with cryptocurrencies, such as bribery and money laundering. The typical SEC whistleblower compensation is over $4 million, so meeting with an attorney is well worth your time. Most fraud-reporting lawyers operate on a contingency fee basis, which means you don’t have to pay anything until you win a whistleblower reward.
FTI Law’s John Joy contributes a guest piece.
FTI Law’s Managing Attorney and Founder, John Joy, specializes in investigating cybercrime and defending cryptocurrency whistleblowers. John is a New York whistleblower lawyer who has worked on financial crime and regulatory matters all around the world for nearly a decade. John and FTI Law use Elementus, the first institutional-grade crypto forensic technology, while researching crypto fraud. Working with a blockchain analytics partner like Elementus guarantees that FTI Law’s clients are able to supply authorities with the most up-to-date information on the criminals.
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The “crypto coki financial overviews” is a blog post that lists 6 things to do if you encounter a crypto scam or fraud. The article also has links to articles on how to avoid scams and what to look out for.
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