By Evan Spicer
Director of Cryptocurrency Investigations
MyChargeBack
It’s no secret that there are more crypto scams than ever before. The FBI has identified crypto scams as a rapidly growing category of fraud and expects an increase in these offenses in the coming years. Not only is the number of frauds increasing, but the average amount of money per customer stolen has risen substantially.
According a to Fraud.org report on news trends, the average amount crypto investors lost on frauds was $18,700 up tenfold from $1,700 in 2021.
Even Seasoned Investors Fall for Crypto Scams
What do these numbers mean? It’s clear that crypto scams aren’t stealing money only from people who feel like just taking a chance with a few hundred bucks. Instead, they are targeting seasoned investors who presumably don’t worry about putting large amounts of money on the line.
That isn’t surprising, because crypto scam techniques are becoming increasingly sophisticated. Many of these websites are indistinguishable from sites of regulated brokers. In fact, many of them go so far as to clone these websites and adopt a name similar to a licensed broker with a strong reputation. Without double-checking and looking closely, it can be easy to mistake a fake broker for the real thing.
Losing Your Nest Egg to a Crypto Scam
The most tragic crypto scam cases of all are people who lose their life savings. They may have been putting money aside for their children’s college education or for retirement. Many are seniors on a fixed income. These people may not necessarily be gullible or desperate – they are simply looking for an effective way to grow their savings and have security for decades.
These investors may feel that since cryptocurrencies are the wave of the future, they should grab a metaphorical surfboard. The broker may persuade them they are licensed, especially if they have cloned a website and are passing themselves off as a regulated broker. However, these crypto scam stories end the same way – the customers lose their money. That doesn’t mean you can’t have a crypto recovery happy ending. It does mean that you’ll need experts on your side to improve your chances of crypto recovery.
How to Keep Your Savings Safe from Crypto Scams
If even top investors can lose money to a crypto scam, is there hope for the rest of us? Fortunately, yes! Following these steps will keep your money safe online:
- Check for a current, high-caliber brokerage license
- Confirm and verify all contact information
- Check the credentials of the brokers
- Beware of guaranteed returns and bonuses
- Read terms and conditions carefully
- If you run into trouble with getting a withdrawal from a broker, contact MyChargeBack
If You’ve Lost Money to a Crypto Scam, Contact MyChargeBack
It’s important not to give up if you are a victim of online fraud, but to seek recourse immediately. 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.
