As cryptocurrency is gaining more and more popularity, there is a substantial rise in crypto scams. Crypto scammers are targeting the newcomers in the field. First-timers are a soft target to the fraudsters of this field. It is difficult to recover the amount lost due to a scam because most people pay the initial amount using cryptocurrency.
But losing hope is no solution and may cause depression to some investors. Several agencies are extending their support to recover your lost money due to a scam.
Here we will try to understand the world of cryptocurrency and how to recover the money lost in a scam.
The Reality of Cryptocurrency
Investors are optimistic about the phenomenon of blockchain behind the trade of cryptocurrency. Some investors are increasingly optimistic about the bitcoin wallet becoming the only paying window by 2030. But with every positive, there is a negative attached to it. The problem associated with bitcoin payment is the inability to track down the transaction.
For example, if you make a payment to the wrong account or person, you cannot recall the payment and consider the amount as lost money. The crypto scammers have found this feature as a loophole and making clients buy cryptocurrencies and then transfer the crypto to another trading platform.
How Scammers Proceed to Frame You?
It starts with a random call, where a person says he is earning 30% of return on his investment every week from forex trading. You have to open a trading account which will be your crypto wallet where you can store your cryptocurrencies like bitcoin. Invest $200 to buy bitcoin and transfer them to the related trading platform to start earning.
Once you transfer the bitcoin to a particular trading platform, you will not be able to access that account and withdraw your money. In some cases, these trading platforms claim that to withdraw the funds, you have to deposit an additional amount of $200.
Why Pay with Crypto When it is Difficult to Recover?
The algorithms working behind crypto give a particular code to each cryptocurrency. When you transfer the code to someone else, you cannot recover it. Remember, you are not transferring money or something tangible.
You have transferred special codes, and whoever has the codes become the master or owner of that particular account. Because of this reason, bitcoin scam recovery becomes difficult. However, taking help from a professional fraud recovery agency can help. They are experts in the field and can guide you in the right direction.
How Crypto Differs from Bank Transfer?
When you make a bank transaction whether, a transfer, deposit, withdrawal, or any other financial transaction, the bank records it. On making a wrong transfer, you can recall the transaction on a request. Crypto works differently.
On buying cryptos, you get a specific code, and on transferring the code, you cannot trace it. The only way left with you is to let the company decide on a refund. The refund that a company pays you is not crypto but the amount that comes in cash of a similar value to your lost crypto.
Steps to Recover Money from Crypto Scams
By following some steps, there are chances of your recovery.
1. Contact the Trading Platform
Contact the trading platform to whom you have lost your crypto. Tell them to report this scam to the financial authorities. There are certainties that you may get your money back. If this is not enough, proceed to the next step.
2. Report the Scam
Let the relevant authorities know about the scam. You can search online the procedures to contact the financial authorities. It is necessary to report the scam, whether it helps recover your money or not. It is the responsibility of every citizen to report any criminal activity to the authorities.
3. Find Other Way Out
Would you sit idle not doing anything if it would have lost a million-dollar to such scams? No, you would not. Do not let a scammer enjoy your hard-earned money. Be creative and try to find different ways to recover your lost money.
Start by writing on social media platforms about the company not taking responsibility for the lost money. Find some stories related to your experience online. Share the broker’s name and photo on Facebook, Twitter, and other social media groups. Maybe the dent to his image can help recover your money.
4. Inform Your Cryptocurrency Wallet Provider
Contact and inform your wallet provider about the scam and the indulgence of the trading platform in this fraud. You must notify the wallet service provider that the trading company is declining to pay the lost money. This method will help raise awareness among new and old investors.
5. Take Service of a Legal Counsel
This option may not appear feasible for all investors facing scams because the legal fees may extend the amount you lost to a scam. However, in some scenarios, legal action may put the trading company under pressure and they can think of returning your money.
6. Be Aware
It is a vital point to consider before you get trapped. After facing a scam, it is of lesser use. Getting aware of crypto trading is the best way to prevent such losses. There is no need to experience an expensive lesson. You can find lots of material online to get acquainted with the positives and negatives of cryptocurrency trading.
Recovery is Difficult but Not Impossible
Although it is difficult to recover money from crypto scams, it is not impossible. Following the above steps can help recover your money up to some extent. Several recovery companies are working for those who lost money in a scam. They are professionals having some concrete tactics and strategies.
Government agencies of many countries are working for a solid solution for these scams. You can witness some crucial transformations in the federal laws regarding cryptocurrency scams in 2022.