Crypto Recovery Scams: How to Avoid Being Scammed Twice

While this article is about crypto recovery scams, the same advice applies to any “recovery service” that offers to help you get back money you’ve been scammed out of.

Don’t trust them.

Quite likely, that service is not going to get you your money back, no matter how much you pay them. Does that mean it’s impossible to recover money lost in scam? No. It is possible that you might be that group of some people who get their money back, usually with the help of government agencies, law enforcement agencies and expert attorneys.

The desperation factor.

However, the frustration and horror of losing money puts some victims in a state of desperation. They take the scammers bait of a sure recovery.

That only makes the scam artist’s job easier, according to Nick Smart, a cryptocurrency expert. “They don’t have to work so hard [to create a great sense of urgency] because they’ve already got one. You’re already desperate.”

The modern-day ambulance chaser.

Lawyers who show up in hospitals looking for car-accident victims and/or their families are still referred to as ambulance chasers. They may be sleazy, however, at least they’re real lawyers offering a real service.

The scammers (or pretenders) who claim to be able help victims recover money in a crypto fraud cases are lying. They’re giving false hope to the desperate victims while taking their money along the way.

Here’s what you need to know about recovery services, and the process of attempting to recover money lost in a cryptocurrency or any other scams.

The truth about crypto recovery services.

1. It is possible to recovery your funds. However, you need to take the proper steps.
2. You should never pay, and shouldn’t have to pay, any upfront money to anyone.
3. Your first move should be to report the fraud and to contact the authorities.
4. You should never respond to any ad, call or suggestion from anyone who claims they know a service who will get you your money back.

How you become easy prey in recovery service fraud.

The impact of loss and the desperate need to be “made whole” makes victims easy prey for predators.

Thile the above facts about recovery services are true and can work—they’re your best hope for getting some money back. But desperate investors will do whatever they can to get all their money back fast.

That’s why they’re easy prey.

1. They might be too embarrassed to tell their families and friends that they they’ve lost their money, even if the investment seemed smart at the time.
2. They might think going to the police is too drastic or even not necessary. After all, the recovery service ads their reading about often claim going to the police first is just a waste of time.
3. They might really believe that the police or government agencies (FBI, FTC, etc.) are too slow footed and behind the technical times to catch up to sophisticated crypto scammers.
4. Again, they certainly think that the longer they wait to get help from an expert, the lower the chance of getting their money back.

The scammers will be sure to stress all of these points in their messages to potential targets.

“Crypto recovery scams say, “talk to an expert.”

Here is an example of what a fraudulent claim might tell a victim looking to recover their money. See how they promise to get your money back and even discourage people from contacting the police. 

You can certainly recover your stolen cryptocurrency regardless of the amount. Sure, you might think you should report the theft to the police and the platform’s security team, but don’t. Fact is, there is little they can do. Finding a reputable recovery service is by far the fastest way to recover your stolen or misused cryptocurrency.

A lot of the fishing for recovery scam victims starts on social media. Probably on a site where the discussion of crypto scams are taking place. A scammer will post a comment, saying to the crypto victim “you should talk to my friend, who helped me get my funds back,” explains Nick Smart.

”They give the scam victim the expert’s contact information, and they soon communicate,” saysNick. “You contact them and then you will start losing your money all over again. Which is really quite sad, to be honest with you. It’s not only that you’re going to lose money from the crypto scam and you’re going to pay these guys to help you, but you’re also going to be attacked again and again and again.”

The allure of crypto: fast, easy money.

Cybersecurity experts say that one of the reasons cryptocurrency scams and recovery scams seem to work “so well” is that much of the industry is new and seems exotic, mysterious and alluring.

It also seems to hold a lot of promise when it comes to getting rich quick. Though most people don’t know how or why that’s the case. It is for the brave and daring, even though there is no doubt it is also confusing and risky.

And that’s precisely why crypto scams work, and right behind them, cryptocurrency scams.

Because once the victim realizes their quick profits didn’t materialize—and instead they’ve lost their money—they’ll do all they can to get it back.

That’s why it’s important not to make a big mistake when that happens.

Don’t pay up front for recovery services to anyone!

Like we said right at the top of this article, you should never pay anyone money upfront to help you recover money. All the experts stress that you should always refuse to pay any money up front for asset recovery services. Do not let your emotions or desperation cloud that judgment or you could fall for a crypto recovery scam.

Consider, if you own a car and it was stolen, would you call a “car recovery service” or call the police to report it? We all know the answer. Even government authorities agree.

According to the U.S. Federal Trade Commission (FTC), scammers (or even legitimate but  deceptive recovery business) will typically ask victims for money upfront before they can start on the case. They’ll make it seem legitimate by calling it a special name:

• a retainer fee
• an advance fee
• a processing fee
• an upfront administrative cost

Whatever they call it, it’s against the law. Why? Because, the FTC says, companies that offer recovery of assets aren’t allowed to accept or even ask for payment from a client until the you receive some recovered money from them. 

Not only should you not pay them a fee upfront, but you also shouldn’t provide any financial details unrelated to the fraud. They don’t need to know your Social Security number, bank account numbers or annual income.

Good advice. Listen to the Easy Prey podcast.

The experts have spoken. If you’ve been taken in a cryptocurrency or other financial scam, report the crime to law enforcement first! Follow their advice, and don’t be swayed by whatever you hear on websites and social media.

For more expert insights on fraud and scams, follow the Easy Prey podcast, hosted by Chris Parker, CEO of WhatIsMyIpAddress.com