Cryptocurrency-related crimes are on the rise and unsuspecting victims are paying the price.
Recovering stolen crypto is not impossible and heavily depends on the circumstances of each case.
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WATCH HEREPeggy Herbert lost $34,000 to a crypto-ATM scam but authorities were able to halt the transaction and recover her money.
But this isn’t always the case especially when crypto has been removed from your wallet.
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“They can funnel the funds through mixers or blenders, where it will be very difficult for us to trace the actual funds of the clients to a specific wallet,” Bezalel Eithan Raviv said.
Raviv is the CEO of Lionsgate Network, a blockchain analysis firm in Israel. He describes himself as a digital crime stopper who works with authorities to track down lost cryptocurrency.
“With our technology, it doesn't matter who targeted you, what matters is that we are able to trace your money to suspect wallet and freeze that wallet with law enforcement collaboration,” Raviv said.
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He says many crypto investors fall prey to fake investment websites. Dummy platforms look legitimate and mimic existing platforms, but they are just fronts to gather your personal information and take your money.
It can appear like you are investing, but the money is going to a scammer.
Raviv says the best way to avoid this is to do your research on the platform before you use it.
“You'd have to research the company, the EIN, the location of the company, their social media pages, to see who the CEO is, who is the founder, who is (in) the board of directors, you have to really become an investigator to understand who's behind the scenes,” Raviv explains.
He suggests using well-known and reputable cryptocurrency exchanges. If you aren’t familiar with the site, check if the site is listed on trusted directories. Pay attention, look for misspellings and strange URLs.
“If you are able to become aware of their tactics behind the scenes, it's the best defense from being targeted,” Raviv said.
It is also helpful to avoid unsolicited offers to invest in crypto from people you don’t know. Often, scammers will reach out on social media or through email. These could be phishing attempts. If you think you’ve been the victim of a crypto scam, you can call local law enforcement and reach out to the FBI Internet Crime Center.
