By Michael B. Cohen
Vice President of Global Operations
MyChargeBack
The number of crypto frauds and online trading schemes is growing to epic proportions. Worldwide, consumers lost $5.8 billion to online fraud in 2021, a 70% increase from 2021, according to CNBC. It looks like 2022 will be another record year for online trading schemes.
There is a silver lining – the majority of these losses are preventable. Although in some cases, hackers may steal money from a bitcoin wallet or a payment platform, many of these frauds involve the conscious transfer of money from the victim to the cyber thief under false pretenses.
Elijah Jackson MyChargeBack Digital Marketing Manager provides an easy, step-by-step approach to keeping your money safe online. His recent webinar, available on YouTube, outlines steps for checking out financial services, detecting signs of fraud, and what to do if you’ve lost money to a fake broker or unauthorized crypto exchange.
Signs of a Fraud: What You Need to Know
We all understand tips and tools to keep our data safe online and secure our devices. The learning process for online trading safety is similar. It’s important to learn the safety rules. Once you adopt these habits, it will be second nature and you can feel safe trading with a licensed, reliable broker.
In this video, Elijah Jackson outlines what you need to know about secure online trading and alerts viewers to common signs of fraud.
Approaches Victims Through Social Media or Dating Apps
We all get sick of spam and annoying ads. Businesses understand this and so do cybercriminals. That’s why they find it simpler to adopt fake identities and befriend people on social media or dating apps. Be careful about people you’ve just met on these platforms and avoid them the second they start to talk about money.
Guarantees Profits
Even the most stable markets can’t be predicted with precision. That’s why any broker that guarantees returns, especially specific amounts, is probably not honest.
Sketchy Regulation Status
Don’t ever open an account with a broker that has no license. There are no exceptions to this rule. Even crypto platforms and exchanges should have licenses.
When the Broker Isn’t Interested in Your Investor Profile
A legitimate broker will ask you questions. They have an ethical responsibility not to put financially unstable clients in further financial danger. Licensed brokers will ask about your financial background, investing style and other questions. Many fake brokers simply sign people up in just minutes. This apparent convenience masks poor motives and huge risks.
Requests Access to Your Computer
There is no reason a broker should need access to your computer. This is a clear sign of fraud. Once someone can use your computer, they can make transactions on your behalf and rob you of data and money.
Insists on Using Only Cryptocurrency for Deposits
One reason cryptocurrency is the chosen payment method among fake brokers is they feel they can hide customers’ funds in anonymous bitcoin wallets.
Keeps Asking for More Deposits
Often fraudsters can’t hide their greed. They keep asking for more money, often even if trades have lost or before they will allow the client to withdraw their money.
Creates Obstacles to Withdrawals
Many people don’t realize they are caught in a scam until they aren’t able to withdraw their money. You know you’re stuck when the fake broker won’t allow you access to your funds. They may ask you to pay extremely high fees, phony taxes or claim you need to earn more money trading first. These are all lame excuses.
What To Do If You’ve Been Targeted by a Fraud
Don’t Panic
The first step is to stay calm. There are resources available and many success stories. Keeping up your hopes and thinking clearly will help you get through the process and take the right course of action.
Gather All Information
Make sure you have all documentation, including communication, transaction data, screenshots, and other information so you can make a detailed claim.
Get Assistance
There’s no need to go it alone. Thankfully, MyChargeBack has the experience, technology and knowledge of the dispute process will give you a distinct advantage.
How MyChargeBack Will Help
If you are suspicious about your broker, don’t delay, but seek guidance from MyChargeBack. We have complex transaction dispute experience and provide in-depth consultation to our clients. Our pioneering dispute technology, blockchain analytics and consulting will help your claim succeed.
MyChargeBack Will Investigate Your Fraud Case
If you have lost money to financial fraud, talk to the MyChargeBack team. Our crypto investigations will provide evidence to bolster your claim.
MyChargeBack has developed working relationships with law enforcement agencies worldwide, has extensive knowledge and experience with crypto tracking, and can improve your prospects of getting your funds back.
