The popularity of cryptocurrencies like Bitcoin and Ethereum is increasing with time. However, if more people are attracted to them, they will face many fake scams. And according to the reported cases, it’s increasing over time.
For instance, look at this data, we collected, which shows how cryptocurrency scams are increasing over time. It has increased almost 4x in the 5 years.
Nowadays, scammers employ numerous strategies to deceive innocent investors who are eager to earn money from crypto. One such tactic involves launching fake cryptocurrencies on decentralized exchanges like PancakeSwap, where anyone can create a coin without the need for coding skills.
So, if a coin is only on any DEX, it’s one of the strongest signals to tell that it’s a fake crypto. Additionally, some coins on exchanges are used to scam people with pump-and-dump strategies.
These frauds appear so genuine that many people globally fall for them. Thousands of individuals lose huge amounts of money through these deceitful processes every year.
Consequently, people begin questioning the whole cryptocurrency idea as their cash is no longer there.
This is a big problem to address. It goes far beyond money. Victims who have been scammed feel sad, betrayed, and lost.
However, if one falls into the trap of such fake crypto scams, one should not get discouraged. Getting your money back after it has been stolen is difficult but it can be done with proper help.
We have discussed every step you should take if you have fallen victim to a fake crypto scam. However, if you have already reported the incident to exchanges and legal authorities, then you should contact a fake crypto recovery expert to recover your money.
Fake crypto recovery experts are blockchain professionals who know the loopholes left in each transaction that can reverse the crypto if it was scammed.
So, it’s a no-brainer (if you were truly scammed and deserve your money) that you will get your crypto back.
Contact them here:
“Thank you so much! I couldn’t be more appreciative. Just wished there were more genuine and honest companies like yours out there.”
If you haven’t done anything else, these are steps you must take immediately. Let’s discuss in detail.
Identifying phony cryptocurrency scams:
If you are new to cryptocurrency, it might surprise you that, yes, cryptocurrency can be faked. However, if you understand blockchain, you will realize that over time, it has become so easy to create cryptocurrencies. You can use any blockchain, such as Ethereum (which is widely used) or BNB, to launch your cryptocurrency.
Therefore, it’s crucial to research a coin even before you invest.
In addition to this, there are some widely related scams that are often associated with fake cryptocurrencies. Therefore, you should also understand these scams to ensure whether the cryptocurrency you are investing in is genuine or if you are falling into a crypto scammer’s trap.
In Ponzi schemes, people make big promises about your money and then when you give them it, they use other people’s cash to pay for the returns. It’s like using the new people’s money to take care of the old ones.
For instance, they might ask you to invest in a coin, refer it to X people and get Y amount a month for life. It’s totally unrealistic and a scam.
Pump and dump schemes:
Scammers hype up a cheap cryptocurrency to make its price rise. When it becomes high, they sell theirs, and its price drops, which leads others to lose money.
For instance, if someone says, “Buy this coin; it’ll double tomorrow,” they might be tricking you to raise the price and then sell.
Pump and dump coins are available on many exchanges especially which are not regulated yet.
Fake ICOs (Initial Coin Offerings):
Scammers create a fake cryptocurrency, promise big things, and ask people to invest. They take the money and don’t deliver what they promised.
For instance, someone contacted me on Telegram, claiming that his friend is sharing a secret coin that will experience a significant price increase in a day or two.
I inquired about the coin, and he mentioned it was $PGT. Upon researching the website, I discovered that it was indeed being used to scam people. They had been making promises for a year about launching soon.
When I mentioned that there was no news on the site about the launch on PancakeSwap, he promptly deleted all the messages, making it impossible for me to report him.
In essence, they were scamming people with a combination of fake crypto and an ICO scam.
Fake Wallets and Exchanges:
- Fake Wallets: These are fake applications and while they pretend to secure your digital money, instead of protecting it, they steal your information. Once you wish to utilize them for payment, suddenly the coins that you thought were safe disappear into thin air.
- Fake Exchanges: They mimic real cryptocurrency trading platforms. You can trade but withdrawing or trading on them keeps your funds frozen.
For instance, one gets a new app that is meant to keep his or her coins secure. Eventually, when it comes to trying to recover those coins later on, it appears impossible because the app is not real.
Here are the steps you should take to get your cash back from fake crypto
But first, a word of caution – it is not easy to reclaim your money from the “crypto scammers,” as I would hate to give false hopes.
There are, however, some steps you may try and use that might assist in recovering your money, although this is not certain.
Nonetheless, cryptocurrencies do not have standard consumer protections like other forms of payment, and once the transfer has been made, it is almost impossible to reverse them but there are ways to catch up with the culprits and get your money back.
I will outline a few possible ways that you could potentially get back lost cryptocurrency or recover stolen funds, depending on your situation.
Do not forget to write everything about the scam
When you try to remember what exactly happened during a fraud several months ago, it looks difficult because things keep moving so fast and there are some emotions that you have been coping with.
Record all the happenings as soon as possible. This should include the names of people involved in the scam, their phone numbers if available, social media IDs, websites, and any online forums on which you had contacts with them.
Jot down how much money you lost, where it was sent, when, and other details that may be instrumental in tracking your cash.
There is a need to maintain an elaborate diary of all events that will help cryptocurrency investigators and police get a better understanding of how these fraudsters operate.
Avoid communicating with the con artist:
Once you have gathered your proof, terminate all correspondence. Do not let the fraudsters know, as they may delete WhatsApp chats or deactivate websites before you can get a chance to capture their screenshots.
Report the scam to the crypto exchanges:
If you’ve been asked by scammers to create a wallet on a legitimate crypto exchange where you will then transfer funds to their wallet, it is worth reporting this scam on its platform.
I have had talks with victims of fraud who were advised to open accounts on Coinbase, Binance, Crypto.com and some other large exchanges and buy cryptocurrency that would fund the scam they had joined.
The exchanges might be unable to facilitate the recovery of your funds but they might freeze transactions or help find patterns in behavior and wallet use that could assist in tracking down scammers.
The more people who report these scammers, the more evidence will exist for exchanges to act against them.
Get help from crypto recovery services:
There are a number of crypto scam recovery companies that specialize in this area in the US and across the world and utilize knowledge and other methods to make sure that your crypto is given back.
For example, “Online Investment Scams” is one organization that goes beyond mere recovery of lost crypto; it also verifies if a crypto wallet is secure before its use.
Different vendors may have different ways of charging for their services. Some recover money for you and then later ask for some percentage as payment, while others may charge an agreed fee. If all you want them to do is to confirm if a wallet is secure, they will only levy you once and for all.
So who can these companies come to the assistance of? Others deal with major corporations or those who have lost large amounts, like over $1 million. However, there are also companies such as “Online Investment Scams” that offer support to ordinary individuals whose losses are not so significant.
Can the authorities help me get my money back when I fall victim to a crypto scam?
I keep telling people to report any fraud cases that happen to them in their own countries, even though there is little hope of getting back the cash.
By giving these cases, you help the authorities build up an impression of how exactly the conmen operate and if caught, they will be able to return your funds because they are on your system.
For this reason, you can always lodge similar claims with relevant fraud authorities within your locality, even regarding crypto scams.
Crypto scams in the UK should be reported to Action Fraud, which is a police-run agency for victims of fraud and scams.
In the US, you can report crypto scams to the FBI’s Internet Crime Complaint Center (IC3) and your local police department.
It also helps other people if you do so. They might not only have a chance of capturing the fraudsters but also sometimes issue alerts through social media about specific fraudulent activities taking place.
What this means is that by reporting it, at least you will have done something about stopping those criminals.
Crypto is a captivating and fast-moving space that is full of opportunities for making money as well as improving the lives of millions of people by giving them access to financial freedom they would otherwise not have.
However, it remains mostly unregulated and thus will encourage scammers to thrive, more so when many people hardly understand how crypto works or what is legitimate or not.
Everyone has been pitched the image of the crypto millionaire leaning on a sports car on social media, but the truth is that it is usually much harder to make money in this market than most people assume, unless you get lucky.
Cryptocurrencies like Bitcoin are merely part of an age-old get-rich-quick scheme.
Find out facts from some easily available online resources and never believe any person who says he can make you rich overnight. This way, you will be better equipped to tackle some scams on your cryptonary journey.
Are there fake Bitcoins?
No, there are no fake Bitcoins. In fact, none of the existing cryptocurrency be faked if you understand a few things.
1. Every existing crypto has a unique blockchain address, find that out and you can verify it on any platform.
2. If a crypto is available on top centralized exchanges (CEXs) for over an year and has some good trading volume, like over $20K, it’s more likely to be a real coin.
If you are still scammed, you should contact a Bitcoin recovery expert.