[Feature] HELP! I’m a Victim of Crypto Scam, What Should I Do?

With cryptocurrency on a gradual ascent to becoming a popular digital asset used for transactions in the technologically advanced world as we know of today, more people are slowly but surely using crypto to conduct transactions, especially with the anonymity that comes with it. Therefore, it is unavoidable that it has caught the attention of scammers, resulting in crypto scams riding on its coattails.

To know more about the various types of crypto scams and NFT fraud, as well as how to spot the telltale signs, you can read all about it here: https://www.coinlive.com/news/detail/?id=10581.

Unfortunately, with crypto scams evolving faster and becoming more sophisticated than we can comprehend, they in turn become increasingly harder to prevent, much less to spot. If you have fallen victim to a crypto scam, what should you do? Keep in mind that if you can recover the funds, then great but more often than not, it is not as reversible as you think.

1)DO NOT DELETE! Keep All the Records

Either for reporting purposes or to ensure you do not fall victim to it again, it is always good to keep proper record of your transactions and communications, if any. Losing track of any vital information can impede your reporting process. To ensure proper documentation of the crypto scam, ensure you have all transaction identification (ID) codes (a number generated from the electronic transfer of funds), the process of how the scam started, what transpired, how much was lost, and any other relevant information.

The ID codes will allow you and the authorities to trace the funds and see where it is going, which boosts the odds of you recovering your funds. These ID codes will also allow you to obtain information on the sending and receiving addresses, fees, and transaction amounts.

2) Keep an Eye on Your Credit

Check your credit report when you know you have been victimised by a crypto scam so you can identify and find out more about the fraudulent accounts opened in your name. In addition, add a fraud alert by contacting the relevant bank linked to your credit report to protect your account from future scams.

3) You Are Not Alone

Chances are, you are not the only one who fell for a particular crypto scam. There are many active online communities that share news about cryptocurrencies. Reach out to others in the community to see if anyone has encountered similar issues, build a network of people so that you can collectively work together to report or resolve the issues.

4) Report Report Report

Contact your local authorities straight away because they will have the best information on what resources are available to you so you can make an informed decision on which agencies you should report to and what your next course of action should be. One report might not equate to much but if more people step out to speak out and report, it aids in building momentum for an investigation to be launched.

If you fund your crypto account and send funds to a scammer using an exchange, notify them so the exchange can provided added security to your account. On Singapore’s Cyber Security Awareness Alliance’s website, you can provide information on scams via the Police hotline or making an online submission.

MetaMask tweeted on 27 May that it had partnered with Asset Reality, a platform for accessing and recovering seized crypto and digital assets, to tackle crypto fraud

MetaMask and Asset Reality has joined forces with the former providing users with an interface to report any crypto scams, and the latter stepping in to keep users in the loop with the case status. MetaMask’s strategy involves collating information from a number of victims to help in identifying the scammer and decreasing the cost of recovering the stolen assets. Victims can submit a ticket for investigation as seen below.

According to Alex Herman, MetaMask’s support product lead, digital asset recovery is challenging due to the anonymity and “immutable” nature of cryptocurrencies. He explained, “While traditional systems opt for transactions to be reversible and accounts to be frozen, crypto has prioritised the control of the individual user and decentralised systems. Bad actors can also use obfuscation techniques to make it harder to track stolen funds.”

MetaMask co-founder Dan Finlay believes it is imperative for victims to file complaints regardless of the amount as it is crucial in accelerating investigation, prompting proper and quick legal actions. With this new mechanism that MetaMask and Asset Reality have in place, faster recovery of stolen digital funds is now possible.

The form to fill in if you were a crypto scam victim

Based on the reply by the Minister for Home Affairs and Minister for Law in Singapore, Mr K Shanmugam, with regard to a parliamentary question on cryptocurrency game scams, he expressed that given the vast majority of such crypto scams are perpetrated by overseas scammers, there is a limit to how much local law enforcement agencies can do. The ability to solve cases will depend on the degree of cooperation from overseas law enforcement agencies. He further stated that the “Police has established a crypto taskforce in 2018 to monitor the cryptocurrency landscape, develop and improve operational procedures in the investigation and seizing of cryptocurrencies, and establish working relationships with overseas law enforcement agencies, industry professionals, and academic experts.” The taskforce also works closely with the Monetary Authority of Singapore (MAS).

At the end of the day, do your due diligence and the best defense is to be cautious. Learn from your experience, reflect on what had transpired, and learn to safeguard yourself moving forward.

Disclaimer: The content in this article is solely the author’s opinion and is by no means financial/investment advice; it is purely for educational/informational purpose only. Please do your own research (DYOR) and never invest what you cannot afford to lose.