Cryptocurrency scams are getting more and more difficult to spot. With scammers using shiny websites and deceptive endorsements, even seasoned investors can get carried away when trying to invest.
Even if you are not the victim, but you know there is a crime or fraud related to cryptocurrency, you should report it, as you can get a whistleblower award for doing so.
Here are the six things you should do, in case you think you've witnessed a crypto crime. (If it's a major scam, go straight to number six.)
Also Read: South Koreans Lost $5 Billion in Crypto Crimes
1-Keep your records
When reporting fraud, you may need to provide records of your transactions and communications. If you do not keep your records, it may mean that the authorities will not take you seriously, and you may miss the possibility of refunding you if you are a victim of fraud. Keeping records means more than just not deleting emails and text messages.
In addition to having it on your mobile device, you should also make copies and save them to cloud storage Cloud, in case anything happens to your device. The same is true for transaction records.
These things may be visible in an online account, but you can never be sure when the company will remove them. Fraud investigations can also take a long time, so it is important to have a long-term plan, to keep these records secure.
Also Read: Hong Kong: Cryptocurrency Crime Reaches Record Levels
2- Contact the company - but never pay for withdrawals
In case you feel that something is not right in a cryptocurrency investment, you should contact the company immediately, to make sure that there is no confusion.
You should contact them via email and phone, as well as use social media platforms, as they can let others know that you are having problems. And if the company responds and asks you to make a payment to withdraw your money, it is better not to pay it under any circumstances.
And if the scam or scam is spread, you will surely lose more money. But if the company is legitimate, you should be able to negotiate the release of your money, without making further payments.
Read also: Cryptocurrency scam gang arrested in South Korea!
3- Find allies
In many cryptocurrencies, there are active online communities that share news via reddit Reddit And Discord And Telegram and other platforms. And in case you are having problems investing in cryptocurrency, but you are not sure if it is a scam or not, you should reach out to others in the community, to see if they have faced similar issues.
Also, these communities can be a useful way to get information, so beware of any advice you get, which could encourage you to pay more to withdraw your money.
As mentioned above, this advice should be ignored. The best way to use online communities is to share your concerns so that others are aware of potential problems, and to build a network of people in similar circumstances, so you can work collectively to solve or report problems.
And if you are sure that something is a scam, you can also alert others by using online review platforms like Trustpilot.
Read also: Because of a crypto scam... 5 years imprisonment for the head of the world's first decentralized finance platform
4- Inform the local authorities
Once you have determined that you have been the victim of a scam or fraud, you should contact your local authorities immediately. Although local authorities may not open an immediate investigation, they will get the best information about the resources available to you, and can tell you which other agencies you should report to.
Also, all too often, cybercrime agencies wait until they receive a number of reports of scams before they open an investigation, so even if the amount you lost is relatively small, it is important to report this to these agencies, as it can help with the investigation.
5- Consider informing the US authorities
Depending on the scale of the fraud, it may be beneficial to report fraud to authorities in other countries, as this can improve your chances of arresting the perpetrators. And when it comes to prosecuting crypto crimes, the United States is the leader.
In the United States there is a Cybercrime Complaint Center to which you can file a complaint, as well as two regulatory agencies (SEC And CFTC . Commodity Futures Trading Commission) that prosecute fraud and crime in the field of cryptography.
If you are a US resident, there is a greater chance that US authorities will act on your information, but even if they are not, there are no restrictions on non-US individuals submitting reports to these agencies.
Read also: Americans’ losses due to cryptocurrency fraud are estimated at $80 million..!!
6- Talk to a lawyer
If you are aware of a major cryptocurrency fraud or crime, you should definitely speak with an attorney who specializes in reporting cryptocurrency fraud.
Where attorneys can advise you on the best place to report, and they can also report information on your behalf.
Most importantly, an attorney can advise you on whether you qualify for a whistleblower award. The whistleblower award is a payment you can get if you report fraud, to certain regulators in the United States.
This includes non-internet-related crimes, as long as there is involvement in cryptocurrency, such as paying bribes or money laundering. The average whistleblower award is from SEC, over four million dollars, so it's definitely worth talking to a lawyer.
It's worth noting here, that most lawyers who report fraud operate on a contingency fee basis, which means you won't pay anything, unless you get a whistleblower award.
0 Comments
Any Queries , You May Ask