The cryptocurrency industry is slowly but surely catching up with today's world. It has transcended through skepticism and unpopular culture to become one of the most prosperous spaces in the financial sector. In addition, it has an excellent option for people who want to invest their money, both for its profitable nature and for its monetary security.
As it is, this is a big deal for all cryptocurrency investors. Also, remember that the watchdogs must renew their tactics to fight back and recover the stolen cryptocurrencies. This article hopes to answer various questions, including the recovery of scammed cryptocurrencies and what the authorities are doing.
Understanding crypto scams
The form that crypto scams take is a hot and varied topic for crypto investors and regulators alike. Some are more prevalent than others, always targeting novice rather than experienced investors. However, scammers are incorporating new tricks up their sleeves to target even the best of the best.
Some of the most common scams include ICO scams, pump and dump scams, mining scams, trading bot scams, phishing scams, ransomware, social media scams to name just a few.
Considering the decentralized and anonymous nature of cryptocurrencies, tracking down the culprits can be a real hassle. Furthermore, the lack of clearly delineated regulations regarding cryptocurrencies globally creates a void of guidelines on what to do and what not to do within the space.
How to protect yourself from crypto scams
Keeping in mind that perpetrators will always be there looking for quick ways to make money, here are some tips on how to avoid crypto scams:
Knowledge is the best defense
Do extensive research on everything you get involved with. This way, you have a better chance of fending off scammers by knowing what to look for. Keep in mind that understanding your own path is better than concentrating on someone else's thoughts and opinions. This point goes a long way, even when looking for a good service provider.
Most of the time, if a deal is too good, think twice. Whether it's an IC O, an advertisement, or a celebrity, extremely bullish deals have a problem. A good example is during the Twitter hack in June 2020, where hackers took over celebrity Twitter accounts. So while the offers to send your funds to the listed addresses for double the amount seemed legitimate, they weren't.
Avoid random URLs or popups
First, it is always advisable to access your wallets offline as it is less susceptible to cyber/ malware attacks. However, if necessary, you should beware of random URLs or popups offering bonuses. These are some of the most typical ways cyber criminals use to infiltrate users' wallets.
Other ways to protect yourself are to check whitepapers, transactional activities of different tokens, avoid SMS, among others.
Ways used by regulators to recover scammed cryptocurrencies
Cryptographic transactions are known to be irreversible. This element instilled the idea that once crypto funds are seized by scammers, it is impossible to get them back; probably this is not the case. As previously stated, cryptocurrency regulators are struggling to figure out new ways to find stolen cryptocurrency funds. The process has a better chance of success now than before thanks to your knowledge and the help of various tools.
Help from exchanges and social websites
The best example of this point is with the Twitter Hack in 2020. While hackers took over the accounts of celebrities who scammed Twitter users out of their funds, the mind was stopped by the authorities pretty quickly. Furthermore, the 17-year-old's scheme resulted in just $118,000 worth of cryptocurrency, mainly because concerned officials found out early.
The success cannot be attributed to the FBI alone because Twitter, Discord, and Coinbase helped during the investigation. Obtaining information from such institutions can be a problem in most cases; however, obtaining court orders requiring the release of cryptographic codes takes regulators a long way in their investigation. Also, combined with today's advanced technology, identifying scammers and other cyber attackers is relatively easier.
Cryptocurrency recovery company
Another major contributor to the recovery of scammed cryptocurrencies is fund recovery companies. His experience conducting investigations and investigations related to cryptocurrencies is a vital addition to law enforcement.
By collecting information from victims, these companies can provide useful reports to regulators as they hunt for the culprits. Also, they are the ones who go to the parties if you fall victim to a crypto scam to start the recovery process. A well-known company that deals with the same thing is Recover scammed bitcoin and scammed cryptocurrency by reporting to Broker Complaint Alert.
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