Don’t Get Re-Scammed By Crypto Recovery Scam

Have you lost money to bitcoin or cryptocurrency scam? File a report/scam complaint here.

Most victims of cryptocurrency scam seek ways to recover their scammed funds. And there are a lot of “Funds Recovery Companies” claiming they can get your money back.

Have you fallen for crypto or any other kind of trade/investment scam? It could be a portion of your savings or retirement funds that you have lost to a cryptocurrency, forex, or binary options scam. Hearing of a possibility or even an offer to recover your lost funds may sound very appealing. But for many victims of these kinds of scam, the “offer” may be another scheme to steal more from you.

What is a Recovery Scam 

Recovery scams can simply be defined as a form of advance-fee fraud. And you are usually asked to pay upfront for the chance of getting a much bigger sum of money later. Recovery frauds target victims already harmed by other kinds of scam. So if you have been a recent victim of crypto scam or any other kind of fraud, here are the information to guard against these follow-on schemes.

False Reviews and Publications: In recent times, some scammers are now easily able to gained access to local news websites by using free or low-cost online press release distribution services. It usually simply works this way; 

  • The scammers create websites posing as fraud recovery investigators/experts. The website is used to solicit fraud complaints, but also includes reassuring customer testimonials, A-plus ratings, and five-star reviews.
  • The scammers write and publish articles about how to recover from fraud, a break-through technology, or outstanding success record in returning money to victims.
  • The scammers plant links to the scam’s website inside the article or press release. Often the fraudsters are quoted as expert sources.
  • The article is then uploaded to a network of subscribing news outlets.

Wondering how they are able to pull this off? A lot of online newspapers or community news websites accept guest posts and automatically post the press releases in addition to their locally written news. Just the same way some larger news aggregation websites may subscribe to these automated services to provide broader coverage of business or industry news. 

However the case may be, the scammers usually write in smart ways in order to lower the readers guard, and convince the reader. They build false hopes, and create an impression of legitimacy. The recovery services are mostly referred to as “fraud recovery experts,” or the “one successful way” to get stolen money returned.

When the fraud victims visit the fraudster’s website and submit their email addresses and phone numbers for assistance, the scam begins or the victim’s personal information is stolen, which could lead to being targeted again in the future. Research indicates that the majority of fraud victims are victimized more than once, and data shows prior victims are often targeted more than non-victims.

Some published press releases are indistinguishable from other articles on the news website. They will also sometimes go so far as include references to CFTC advisories, fraud avoidance tips, and links to submit fraud complaints. 

Retargeting Former Victims: Another approach employed by crypto recovery scam is to target former victims. In addition to these bitcoin and cryptocurrency scammers stealing victims’ money, they also steal the victims’ information. It could be by hanging onto it for a some time and coming back to run another scam or by selling it on the dark web.

Victim lists can include payment and contact information, personal details, the amount of money taken, and the type of scam that was used.

This is how it works, a victim may receive a phone call or email from a person claiming to be a government official, an attorney, or recovery service representative. In most cases, the fraudsters claim to have the money already in hand, or are working with the court to distribute the funds. In other cases, the victims are told that the fraudsters who took their money have been tracked down and the caller is notifying victims to begin a civil court action. 

Sometimes, victims are told that most or all their money will assuredly be returned if they first pay a small donation, retainer, or overdue taxes. However, after making the first payment, requests for more funds often follow.

How to Spot a Crypto Recovery Scam 

Here are some ways to spot a cryptocurrency recovery scam. Any of them should be considered a red flag that raises your suspicion. Report any follow-on fraud attempts to authorities.

  • You’re asked for an email address or phone number before seeing fee disclosures or a detailed list of services.
  • You’re asked to pay before receiving any service. Be alert to deposits or other seemingly small fees. Sometimes fraudsters ask for small amounts of money at first, but the frequency of requests and amounts increase over time.
  • The physical address for the recovery business is not on the website, the address is outside the United States, the address is not found in map or “street-view” searches, or does not appear to be an authentic place of business.
  • No phone numbers are provided, or you’re asked to communicate through Telegram, WhatsApp, or other messaging platforms.
  • You’re asked to give bank account details so the “recovered” funds can be deposited directly into your account.
  • Calls, letters, or emails are coming from people you don’t know or companies you’ve never contacted.
  • The person or organization knows a lot about the money you lost.
  • The person or organization is using a web-based email address, such as @Gmail or @Yahoo.
  • Organization seals, logos, graphics, or signatures look like they’ve been cut-and-pasted from other documents.
  • The letterhead looks unprofessional.
  • There are grammar and spelling errors.
  • You are given reasons why the fees can’t be taken from the money after it’s recovered, or they call the payment a donation or tax.

Also Remember:

  • Never give personal, payment, or account information over the phone or by email. Even providing an email and phone number could open the floodgates to more fraudulent solicitations.
  • Government agencies like the CFTC that prosecute financial fraud will never ask you for money and would only use “.gov” email addresses.
  • If an email directs you to a customer service or government website. Conduct your own web search for the person or organization and contact them independently.

Victims who are eligible for restitution that is legitimate will likely be notified by mail. If you receive such a letter, verify the information by independently going to the agency’s or court’s website, or calling them yourself. Do not use phone numbers or web addresses provided in the correspondence until you verify its authenticity. If the communication is part of a fraud, the phone numbers and web addresses will be fraudulent, too. It’s good to take precautions, but don’t ignore the letter. It could also be real.

Avoid Cryptocurrency Recovery Fraud – File a Report With BrokerComplaintAlert (BCA)

Even if you are unable to get your money back from the scammers, it is important for crypto scam victims to report fraud, and also help prevent others from falling victim to these schemes.
Report frauds to local, state and federal law enforcement and regulatory agencies, like BrokerComplaintAlert! Notifying local, state and federal authorities will also help agencies track frauds, pursue the fraudsters, and warn others. A few agencies like BrokerComplaintAlert.com go the extra mile to ensure your funds are recovered for you. Report crypto scam to get your funds back today, Visit: www.brokercomplaintalert.com

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