Bitcoin is a decentralized digital currency, without any type of central bank regulation or administrator oversight for the currency. Bitcoin can be transferred from user to user on the peer-to-peer network without intermediaries. Due to its decentralized nature, cybercriminals and fraudsters use cryptocurrency to operate scams and launder finances. Secure cryptocurrency payments have many benefits, but as popularity grows, it is a target for scammers and Bitcoin fraud cases grow by the day. These criminals take advantage of new crypto users’ ignorance as to how the technology works.
The main Bitcoin scams
Malware and viruses in fake Bitcoin wallets
Using social media, scammers offer effortless ways to acquire Bitcoin by sharing links, which transfer malware to the victim’s devices. This malware gives the scammer access to the victims’ information and compromises their existing cryptocurrency resources.
Bitcoin ‘flipping’
Many investors purchase digital currency, hoping that it will rise in value in the future. However, many investors are not patient enough and hope to realize their profit earlier. This is where the “Bitcoin flipping scams” come in, where scammers promise to increase their investments quickly. Instead, they simply steal the investors’ Bitcoin.
Bitcoin phishing
With Bitcoin phishing, scammers pose as an organization on the internet, offering legitimate Bitcoin services. They often impersonate reputable companies, which is why these scams are so successful. The online scammers then convince the victims to give their Bitcoin keys and, once the key has been acquired, they can access the victim’s wallet and do whatever they please with it.
Pyramid schemes
Cryptocurrency is also used for more traditional schemes like the well-known pyramid schemes. With these pyramid schemes, investors pay into the scheme and recruit other people to join, to keep the scheme going. The fraudsters make people sign up for a low-risk, but high-profit scheme. The people at the top will profit, but the ones further down end up losing their entire investment.
What to do as a Victim of Bitcoin Fraud?
We know there can be some shame involved in being a victim of Bitcoin fraud. However, there is no shame in being a victim of these sophisticated operations. So by accepting this, and seeking help, you can recover some or all of your lost funds.
Lost Bitcoins are hard to trace, but not impossible.
Our cryptocurrency fraud investigators have extensive experience in recovering lost cryptocurrency funds for our clients. We know how these schemes and how scammers work to target their victims. We also understand how professional misconduct may cause you to lose your funds. Our experience and knowledge in the cryptocurrency fraud industry, as well as cybercrime, enables us to help you recover your loss and hold fraudsters to account by identifying them.
Civil and/or Criminal Remedies
We work with forensic accountants and prosecution agencies, both domestic and international, to trace and recover your cryptocurrency assets. We use very sophisticated tools and software to trace even the most difficult transactions.
Our investigators specialize in identifying anonymous users on the internet, such as Bitcoin fraudsters. When identified, there must be evidence of some kind of wrongdoing to pursue the identified scammer directly for the repayment of the funds they stole. In civil cases, the standard of proof only requires evidence to satisfy the “balance of probabilities”, which is lower than the criminal standard, which is “beyond reasonable doubt”.
Contact Rexxfield Cryptocurrency Investigators
When it comes to investigating cryptocurrency fraud, extreme tact and attention to detail are vital. Every case is different, which is why we don’t offer one-size-fits-all solutions. As such, we offer free consultations to determine if and how we can best serve you.
