Attention those who have had their crypto stolen! Don't fall into the second trap...
Digital security company ESET has warned investors who have had their cryptocurrency stolen not to fall into a second trap. So, what should those who have had their crypto stolen do? Here are the step-by-step precautions to take...
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Due to its decentralized structure, crypto is an area where investors worry about being scammed and where it is quite difficult to recover funds. Scammers convert the money in the accounts they seize directly into cash.
At this point, investors aiming to recover their money get caught in a new fraud network. With this method, called "recovery scam," victims are promised that their accounts will be recovered in exchange for an upfront payment. Thus, those who have had their cryptocurrency stolen fall into a second trap.
Digital security company ESET has warned those who have had their cryptocurrency stolen not to fall into a second trap.
'Recovery scammers,' who also use social media effectively, can deceive victims by messaging them, calling them on the phone, and sometimes even acting directly as if they were authorized officials. In other cases, scammers may even leave long comments that are a mix of references and advertisements promoting their services on cybersecurity forums.
HOW TO PREVENT CRYPTO THEFT?
According to the US Federal Bureau of Investigation (FBI), 2.5 billion dollars were lost in 2022 due to cryptocurrency fraud alone.
Consumers have been warned not to shop on online shopping sites using their crypto accounts.
Regardless of the type of fraud, they all have one thing in common: the recovery service issue.
They demand an upfront fee before they start "their work" or another fee so that you can continue with the refund process.
They may communicate using a web-based email (e.g., Gmail/Yahoo) instead of a corporate account.
They ask for your banking, crypto account, or personal information to "refund" your money.
They claim to work closely with law enforcement or government officials.
They initiate contact out of the blue via social media DMs, messages, or email.
They do not provide any phone number for you to reach them.
The person contacting you may seem to know many details about your specific situation, including how much was stolen and how it was stolen.
WHAT SHOULD THOSE WHO HAVE HAD THEIR CRYPTO STOLEN DO?
It should be remembered that there are legitimate firms that can offer services to help you receive compensation for cryptocurrency investments and other types of fraud. Sometimes scammers also try to impersonate these organizations.
If you have recently lost cryptocurrency due to fraud or theft, consider the following steps:
Collect as much evidence as possible.
Report the incident to the police or the relevant regulatory authority.
Reach out to a legitimate law firm that offers "recovery" services that you have researched and can trust.
If you know it, try to contact the exchange where the scammer converted your cryptocurrency into cash.