![]() ![]() While these services are different from the outright scams mentioned above, there are still issues that customers should be aware of.Īgain, practically all such private services require upfront payments regardless of the outcome. Consequently, there are many self-proclaimed private blockchain experts and investigators promising to help victims trace their stolen funds. The transparent nature of blockchain allows anyone to see details of each and every cryptocurrency transaction. Services Offered by Private Cryptocurrency Investigators Many of these companies attempt to conceal their true locations, portraying themselves as registered in or operating from jurisdictions like the United States or United Kingdom, while searches show that their “employees” are actually located in the same locations as the perpetrators of the original frauds. Government agencies have issued warnings about such services, noting that they commonly recycle victim lists from the initial scams.Ī quick Google or Linkedin search for employees of such companies can often reveal employment histories at companies that have been the subject of regulatory actions, critical media reporting, and/or poor user reviews. Connections to Fraud Networksįraudulent recovery services are often owned by individuals connected to investment fraud networks. In addition to not paying these fees, victims should also avoid sharing sensitive details such as their bank account information with the alleged recovery services. The FTC notes that in the United States, “telemarketers selling recovery services can’t ask for or accept payment until seven business days after they deliver the money or the item they recovered to you because it’s against the law.” The US Federal Trade Commission (FTC) warns that these upfront fees can be called many different things, including a “retainer fee,” “processing fee,” or “administrative charge.” Often, they will require a fee before engaging with victims’ cases at all. Predatory recovery services mostly require a flat fee upfront for their services regardless of the outcome of their tracing or fund recovery. Below are some common components of cryptocurrency-specific recovery scams that our team has identified. In our work with Binance’s Global Intelligence and Investigations team, we have encountered suspects advertising cryptocurrency fraud on social networks, forums, and consumer review websites focused on investment losses. The US Commodity Futures Trading Commission (CFTC) has warned consumers that these services run promotions in places where victims are looking for help, such as in the media. Regulators and consumer protection advocates have provided advice on how to identify and avoid fraudulent recovery services. However, following the impressive global growth of cryptocurrency adoption, it is not surprising to see criminals refocusing some of their activities on this sector. ![]() Regulatory agencies and law enforcement around the world have previously warned users about the dangers of illegitimate asset recovery services. This is not a new scheme, and one not exclusive to the digital asset space. Such schemes are another form of an “advance-fee fraud” whereby victims pay upfront expecting larger returns later. ![]() Is the money truly gone? Who is behind the fraud? What recourse do I have and who should I report it to? Unfortunately, there are bad actors out there waiting to take advantage of victims by offering fraudulent recovery services. Oftentimes, there is a great deal of confusion and uncertainty. A Familiar Threatīeing the victim of an investment or other type of scam can be emotionally and financially devastating, stressful, and embarrassing. Scammers that use this method pose as providing a legitimate avenue to recover funds that victims have lost via theft, fraud, or hacking, essentially targeting the people who had already lost their money to criminals. Learn more about fraudulent recovery services and how to spot them from those with first-hand expertise – the members of Binance’s Global Intelligence and Investigations team.Īmong many criminal schemes that seek to part cryptocurrency users from their funds, fraudulent recovery services hold a special spot. ![]() Think twice before paying for a false hope of getting your assets back!Īctual recovery is dependent on police seizure orders and assistance from cryptocurrency exchanges. Most produce investigation reports of little value or are downright fraudulent. There are many private blockchain investigators promising recovery of stolen digital funds. ![]()
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