Did you know that millions of dollars are stolen in cryptocurrency scams each year? According to the Federal Trade Commission (FTC), there were 6800 complaints of crypto fraud between October 2020 and March 2021, and the total loss was more than $80 million. The financial loss during those six months was ten times the amount recorded from 2019 to 2020. These figures show how people are becoming more susceptible to crypto scams, and scammers might have found more effective methods to steal from investors. If you’ve been scammed, this article has the solution you were looking for to recover your funds. But before you can recover your money, you need to identify the different scams.
Top 5 Crypto Scams of 2022
1. Coinbase Scam
Coinbase is a cryptocurrency company that provides a platform for online crypto trading. It is a well-known cryptocurrency trading platform in the US; however, it has gained popularity globally. But it has also gained the attention of scammers and has been used by them to commit cryptocurrency fraud. For example, emails and text messages containing links are sent to people. It leads to a fake website asking for information related to cryptocurrency accounts, or malware may be installed on the users’ devices, stealing their data. Moreover, scammers have posed as Coinbase in those emails and text messages; hence, people might have unknowingly given their information to scammers thinking it was an authentic cryptocurrency company.
2. Ponzi Scheme
Scammers promise investment opportunities with very high returns in a short period to investors. Based on this promise, scammers add new investors to the scheme. However, people are not offered a real investment opportunity because the new investors’ funds are given to older investors as returns on their investment. Therefore, the funds keep circulating between people in the scheme creating an illusion of making a profit from cryptocurrency. The initial investors do receive returns on their investment which increases the credibility of the Ponzi scheme and lures in more people. However, when the scheme has sufficient people, the scammer disappears with all the funds.
3. Romance Scam
Scammers create fake profiles on online dating apps and build trust with different people. Then those people are offered profitable investment opportunities for cryptocurrencies. Similarly, the scammer might ask people to share personal information such as their account username and password or “private keys” needed to access cryptocurrency stored in online wallets. According to the FBI’s Internet Crime Complaint Center, more than 1800 crypto-related romance scams were reported in 2021, the accumulated loss crossing $133 million.
4. Giveaway Scam
This scam is the most common one because people easily fall for promises of free money or giveaways. The scammer might guarantee that investors would receive free cash, or they would double the investors’ funds in a given amount of time. However, once the investor sends the money, the scammer disappears with it. Moreover, the scammer might pose like a celebrity, making people easily trust the giveaway as it is a once-in-a-lifetime opportunity. The US Federal Trade Commission reported a total loss of $2 million to scammers posing as Elon Musk under giveaway scams in 2021.
5. Technical-Support Scam
Scammers can take advantage of an investor’s lack of knowledge regarding cryptocurrency and its trading. They can pose as customer support from cryptocurrency exchanges and platforms and build trust with people. Consequently, people might unknowingly give away information related to their cryptocurrency accounts. For example, the “private keys” needed to access cryptocurrency stored on your digital wallet.
Recover Your Funds From Scammers Now!
In case you’ve fallen victim to any of the scams above or other crypto-related frauds, there is a chance that you can recover your money. So what should you do?
Contact Relevant Authorities
You should contact and report the scammer to the following organizations based on your country or region:
- Federal Trade Commission (FTC) at reportfraud.ftc.gov/
- Financial Conduct Authority (FCA) at fca.org.uk/contact
- Broker Complaint Alert at brokercomplaintalert.com/
You could request a chargeback from your bank if you used your credit or debit card for crypto-related payments.
Hire a Third-Party Organization
TheGlobalPayback is an excellent example of such a company that can help recover your funds. It is a consultancy company that deals with a wide variety of funds. They’ve got you covered whether the scam is related to crypto, CFD, or Forex trading! Moreover, their team of highly experienced people, not only for technical matters but also for legal matters, makes the entire recovery process very smooth. And the best part is you can get a consultation absolutely free before paying for any services related to the recovery process!