Victims of cryptocurrency scams can now exhale with relief. MetaMask, a well-known cryptocurrency wallet, recently collaborated with Asset Reality, a London-based specialist in digital asset scam investigations and recovery, to assist fraud victims in recovering their lost cryptocurrency holdings.
Victims Of Crypto Scams Must Come Forward
Dan Finlay, a co-founder of MetaMask, thinks it’s crucial for scam victims to report their experiences, even if it’s just a little bit at first. This is essential for quickening the investigation and triggering appropriate and efficient legal action.
Cryptocurrency worth tens of thousands to hundreds of millions of dollars has been stolen or defrauded. Online crypto scam and hack victims have experienced emotional and mental agony, primarily because they feel trapped or in a vacuum as the attackers plan their next move. On a physical, emotional, and economical level, it has been agonising.
Now that MetaMask and Asset Reality have a new mechanism in place, it is possible to quickly recover digital funds that have been stolen. The Web3 ecosystem’s security levels will be raised as a result. The plan calls for enhancing security procedures, upgrading digital asset backup, and educating users about cryptocurrency hacks and scams.
Example of a Crypto Scam
The following circumstance is one that bitcoin tax attorneys frequently encounter:
1. A scammer will call or message a potential victim on social media, telling them they have a fantastic opportunity to gain money. Today’s most popular platforms are Telegram, Discord, and WhatsApp, in that order.
2. The con artist will pretend to be a cryptocurrency specialist who works for a major tech business, such as Google, or as a financial advisor, investor, or member of the company.
3. To persuade a potential victim that they are a very successful bitcoin investor or trader, the fraudster would show images of outstanding returns. By offering free trade advice, the con artist may occasionally try to win over potential victims.
4. By promising substantial returns, the scammer will persuade the prospective victim to “invest” a modest to the moderate sum of money.
5. In order to persuade the victim that their investment is doing very well, the con artist would deliver screenshots to the victim. The victim will believe that everything is going well at this point and that it would be prudent to “invest” additional money.
6. The con artist will keep convincing the victim that everything is fine and will persuade them to make additional investments, including withdrawals from retirement savings.
7. When the victim is ready to collect their said winnings, they tell the con artist that they want to withdraw their money. The con artist will probably say that you must pay a lot of taxes, which can’t just be taken out of your “profits.”
8. How it ends: When the victim tries to “cash out” or withdraw their money, they are unable to do so. The con artist will then vanish and become unreachable.
Avoiding Crypto Scams
When someone chooses to “withdraw” their funds or convert their funds into USD, this may be a huge red flag that you have been duped. You are probably the victim of fraud if the “advisor” or “institution” insists that you must pay taxes before you can withdraw your money or claims that there is some other compliance issue.
Instructions to Get Your Cash Back From Tricks Utilizing Digital Forms Of Money
- It’s difficult to get your cash back from tricks utilizing digital currency. Leinweber claims that because blockchain transactions cannot be changed, there is little chance you will get your money back.
- Despite this, he continues to encourage people to file police reports. He asserts that if you report a scam, the government may be able to locate the perpetrators and retrieve your funds.
- To avoid becoming a victim of fraud once more, the best course of action is to exercise greater caution with future assets.
Dealing with cryptocurrency fraud can be frustrating, especially if you don’t know how to get your money back. However, with the assistance of the investigators, you can quickly locate the con artist and seize your money if you keep the aforementioned information in mind.