By Evan Spicer
Director of Cryptocurrency Investigations
Cryptocurrency is an exciting trend, but it has also led to unscrupulous actors hiding thanks to blockchain technology. Since transactions are anonymous on the blockchain, the common perception is that it is safe for criminals to find refuge in the blockchain and launder their money.
However, forensic investigators are also leveraging some advantages the blockchain provides in tracking transactions. All transaction records on the blockchain are public and are easily accessed, even though they are anonymous. Crypto reports created by fund recovery experts also play an essential role in helping investigators catch crypto scams.
Our certified cryptocurrency researchers at MyChargeBack create intelligence reports and crypto reports that help investigators track down crypto scams. We also provide guidance to consumers who are trying to recover their funds from broker disputes, forex scams and other types of fraud. Talk to MyChargeBack if you have been the target of bitcoin wallet theft or a crypto scam.
The Challenge of Cryptocurrency and the Blockchain
Since 2020, cryptocurrency fraud has increased over 100%. The FBI, Interpol, and government agencies worldwide have warned consumers about the problem of crypto fraud and bitcoin wallet theft. The blockchain is perceived as a thick jungle where criminals can hide anonymously.
Real names are not used on the blockchain. It is easy to create a fake brand on social media, advertise some extravagant crypto trading deal, ask for crypto keys and codes, and then disappear with the money.
The blockchain is an impressive new technology that, in many ways, has defied government regulation, even though governments such as China’s have tried to shut down crypto exchanges. Many governments are looking for ways to regulate cryptocurrency, but these solutions will probably not be developed and implemented in the near future. In the meantime, consumers have to be quite careful dealing with cryptocurrency transactions.
Blockchain technology operates like a ledger in which all transactions are recorded and cannot be erased. When a new transaction is made, a block is created. New crypto-coins are created through complex mathematical problems involving multiple computers.
Many people are attracted to bitcoin and other types of cryptocurrencies because they are fully digital and are outside of the scope of government control. There is a dark side, however, to this freedom from regulation. Because cryptocurrency is not regulated by government agencies, there is little recourse in cases of bitcoin wallet theft and cryptocurrency scams.
However, forensic investigators have developed methods for tracking down cryptocurrency transactions and can unmask the identity of the people and behind these transactions. They use their own methods as well as crypto reports developed by third parties to assist their efforts.
How Investigators Track Down Crypto Scams
Although cryptocurrency transactions are anonymous on the blockchain, forensic investigators, with some digging, can uncover who is behind them. Although names are not used, there are codes available. When someone reports bitcoin wallet theft or a bitcoin fraud, they can follow the codes and look at other transactions.
The transactions made by these codes can be traced and examined. There can be suspicious fluctuations in amounts that can signal money laundering and the number of transactions. Investigators can look at IP addresses as well as the size and type of transactions.
Because patterns can be seen on the blockchain, in some ways it can be easier for investigators to spot crypto scams. Once the investigators can show a pattern that indicates fraudulent behavior, they can use the IP address so that a court order can be obtained for codes and keys that can unmask the identities of the people behind the crypto scams. Once this is done, the crypto fraudsters can be brought to justice.
How Crypto Reports Can Help
Crypto reports can make the job of investigators easier by mapping out transactions and providing records. Fund recovery agents speak with clients and discuss the experience with the theft or crypto fraud. The client provides information and records of transactions that can provide a starting point for investigators.
The crypto intelligence report can also provide speculation and leads about who may be behind the fraudulent transactions. These leads can be helpful and provide a roadmap that will help investigators trace out the story of the funds and figure out what happened to them. It can also give the investigators a basis for requesting a court order or a subpoena for codes and keys that can identify the suspect.
The Effectiveness of MyChargeBack Crypto Reports
MyChargeBack is a financial services firm that has extensive experience with creating intelligence reports and tracking down crypto transactions on the blockchain. Our experts consult with clients and discuss their cases. With this information, we can create a crypto report that will help authorities track down who received the crypto and help clients recover funds.
Some argue that crypto recovery is elusive because transactions on the blockchain cannot be reversed. However, in cases of fraud, legal authorities can force criminals to return funds to people they have defrauded. In addition, fund recovery services can let the targets know that they have been tracked down and they may immediately return funds to avoid more serious consequences.
For clients who have lost crypto due to fraud or other disputes, MyChargeBack can make the difference between fund recovery and loss. After an initial consultation, MyChargeBack professionals will decide whether the case can be pursued or not.
If the case is accepted, MyChargeBack will interview clients and ask for transaction records, a detailed account of how the fraud happened and other relevant information. They will also ask for any communications on social media or through email, along with screenshots that can tell the story and give investigators a full picture of what happened. The more information you provide, the more likely the crypto report will have a successful result.
Need a Crypto Report? Contact MyChargeBack Experts
If you have lost money to a crypto fraud or are involved in a broker dispute, it is important to seek guidance immediately. Consult with MyChargeBack experts and provide information that can help us draw up an crypto intelligence report and speak on your behalf to law enforcement authorities. We can assist investigators and help you pursue your case.