How to block bitcoin wallet scammers and where to complain

Attackers use services that allow them to hide the origin of funds. Colloquially, they are called “mixers” because of the mixing of input transactions to cover their tracks.

However, thanks to companies that specialize in tracking stolen coins (Chainalysis), there are tools that can trace the entire chain of transfers to the final recipient and identify the owner.

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Such services cost from several thousand dollars (the final price depends on the complexity of the analysis) and therefore are not used when the damage caused is insignificant.

Where to complain about a fraudulent bitcoin wallet

The sooner the user draws attention to the theft of cryptocurrency, the higher the chances of getting their coins and tokens back. There are several effective methods to counteract the scam. One of them is to complain about the Bitcoin wallet of the fraudster on major thematic sites and forums.

Algorithm of actions in case of cryptocurrency theft

In the situation of illegal seizure of digital assets, the user should perform the following actions:

1. Save correspondence and contacts through which communication with the fraudster was conducted.
2. Report the unauthorized transfer of funds to the support service of the exchange.
3. Publish information about the incident through cybercrime platforms and forums.
4. File a police report about the fraud.
5. Use the services of transaction tracking companies.
6. File a claim with the court for a refund.

Any information that allows you to identify the attacker should be passed to law enforcement. After an investigation, the confiscated coins can be returned according to the lawsuit.

Ways to protect yourself from cryptocurrency scammers

Blockchain technology is evolving, but digital currencies are still not immune to attacks from hackers. Simple tips will reduce the risk of being scammed and keep coins and tokens in your possession:

• Use only trusted services. When choosing an exchange or exchanger, you should familiarize yourself with customer reviews, trading volumes and the size of commissions. To avoid phishing (spoofing) it is worth paying attention to the address bar in the browser. If the link differs from the original, you should immediately leave this site.
• Separately store cryptocurrencies. The breakdown of capital is a security issue. In case of a hack, the damage will be limited to the amount on one wallet.
• Set up 2FA. Enabling two-factor authentication will increase account protection, reduce the risk of losing access.
• Avoid highly profitable investing. Offers to take cryptocurrency into trust for a profitable short-term investment almost always mean deception. Once the coins are transferred, any communication between the scammer and the investor is cut off.

Is it possible to return stolen BTC

These are isolated cases so far, but some users managed to get back cryptocurrency. We are talking about large sums, amounting to hundreds of thousands of US dollars. For example, the London court, for the first time in world practice used interim measures in a case of fraud with digital assets. A UK resident gave 64 BTC to a trust management company, but the investment company turned out to be fictitious and the coins were transferred to other addresses. With the help of experienced lawyers and digital experts, it was possible to trace the funds and seize 2 BTC wallets of the fraudsters located on the Binance and Kraken exchanges.

Summary

As cryptocurrency grows in popularity and value, the number of attempts to steal coins through hacking or fraud will increase. The activities of fraudsters are not aimed at finding infrastructural vulnerabilities, but at influencing wallet owners. For this purpose, they create fake websites, copying the design of the original ones, and get the information entered by the user.

The second way of committing crimes is investment pyramids with promised monthly accruals of very high interest. Attackers also inject malicious code into fake cryptocurrency apps on official Android and IOS platforms. As digital assets are legalized, laws are emerging based on which law enforcement agencies can start investigating crimes.

If a user has encountered fraud, then all available information about the transaction should be saved and contact the police.

If the amount of damage caused is significant (more than several thousand dollars), it is necessary to involve cryptocurrency crime analytics companies in the investigation. They will help trace the entire path of stolen funds to the final destination.

Frequently Asked Questions