What Is Blockchain Digital Forensics?

Blockchain Forensics

The phrase “blockchain forensics” includes two concepts we may have heard of, but may not engage with directly in our daily lives.

If you buy, sell, or trade bitcoin and other cryptocurrencies, you have dealt with the blockchain, a ledger technology that records all crypto transactions. Regarding forensics, we see stories involving forensics in crime movies or series or in news articles. 

In short, blockchain forensics is the science of detecting financial crypto crime, including bitcoin scams. Until recently, many people felt that once they lost money on the blockchain, it was gone forever.  

Fortunately, we are seeing increasing numbers of crypto scams being detected, brought to justice, and forced to return money to their victims. This has become possible through advances in bitcoin forensics.

Bitcoin fraud alert

How Blockchain Forensics Tracks Down Crypto Scams

The goal of the blockchain digital forensics process is to find evidence of crypto crime and uncover information about the people behind it. 

Unlike bank transactions, financial activity on the blockchain is there for everyone to see. In fact, this transparency is one of the main benefits of the blockchain. Every time we send bitcoin to someone, it’s recorded on the blockchain forever, and anyone can see it. 

However, there are no names or addresses attached to those anonymous bitcoin wallets. Bitcoin forensics analysis uses cutting-edge technology and time-honored investigation techniques to uncover identities behind suspicious crypto wallets that may be used as part of a crypto crime.

What Are Some Examples of Blockchain Forensics Successes? 

We see blockchain digital forensics success stories every day as we pursue fund recovery for our clients. However, there are some high-profile crypto recovery cases that should sound familiar to anyone who has been keeping track of the headlines for the past few years. 

In 2021, Colonial Pipeline, which provided fuel to consumers along the East Coast, was attacked with ransomware. This attack represents one of the worst fears of the digital era – that essential utilities would be held hostage by cybercriminals. 

The ransomware attackers threatened to keep Colonial Pipeline shut until it paid $5 million in bitcoin. The ransom was paid, and service was restored, but in the end, the ransomware attackers were the losers. The FBI used advanced blockchain forensics tools and methods to uncover the identities of the ransomware attackers and managed to recover almost all of the $5 million.

Digital forensic tools

The Crucial Role Bitcoin Forensics Tools Play in Crypto Recovery

Clearly, the ransomware attackers underestimated the FBI and their bitcoin forensics tools,  technology and strategies. The key to this crypto recovery victory was a combination of technology and investigation methods. This means combining the best of cutting-edge solutions and traditional investigation to track down the names behind crypto scams. 

Advanced technology tracks bitcoin wallets to real-world data, such as names and addresses. These links can be created through websites, social media updates, and darknet sources. Exclusive software can track suspicious bitcoin wallets and survey activity. Once the technology recognizes and establishes patterns, it can be easier not only to deduce identities but to predict where they will strike next. 

It’s not enough to launch a full bitcoin forensics investigation and unmask the names and addresses behind suspicious bitcoin wallets. The findings have to be presented in a way that will tell a story and indicate where the money went. This information will give the authorities leads in their own investigations into crypto scams.

Why You Need Blockchain Digital Forensics Experts

Even people who are knowledgeable about cryptocurrency may feel overwhelmed when they have lost money to a crypto scam. Most people feel they are clever enough not to fall for online fraud, and often, there is a period of denial. They may believe they are dealing with a legitimate broker and feel certain they will eventually be granted a withdrawal. 

Of course, in the case of crypto scams, this doesn’t happen. Often, by the time customers realize that they are dealing with financial fraud, the culprits have already started laundering the money on the blockchain through many crypto wallets. 

Digital Forensics

At this point, there is still hope, but crypto fraud victims need bitcoin forensics analysis professionals with exclusive technology and refined crypto investigation techniques that will unmask the names and addresses behind frauds on the blockchain. 

Some people may feel it’s best to go it alone. They can do this, but solo efforts are rarely successful. The reason the FBI managed to track down the Colonial Pipeline ransomware criminals so quickly is that they used crypto trace software not available to the general public and they employed the most seasoned investigators to uncover the ransomware crime. 

MyChargeBack uses technology that is usually available only to law enforcement and government officials to uncover identities on the blockchain. In addition, our staff has combined decades of experience dealing with fund recovery cases and retrieving funds for our clients.

Get Started Tracking Down Crypto Transactions with MyChargeBack Professionals Today

MyChargeBack experts have extensive knowledge, proven methods, and cutting-edge applications, software, and databases. We understand the dynamics of the crypto tracking process and have a working relationship with law enforcement agencies and regulators. We will empower you to get results from your claim.