Page 22 - WBG NOV2024

FEATURE

I was scammed

What do I do now?

Practical notes from a

crypto investigator

Crypto Scams – a multibillion-dollar problem
Crypto scams are on the rise globally and estimates
put the annual losses in the tens of billions of USD.
Governments and law enforcement are struggling to keep
up with the speed of the new technology. Many lawyers By Björn Wahlström,
also don’t know how to deal with the crypto portions of a CEO of Sphere State Group
fraud committed on the blockchain, and victims are often
left fending for themselves. This article looks at some of
the key points to consider if you have, unfortunately, fallen
victim to a cryptocurrency fraud. I also look at the role of 1. Cease All Transactions and Communication
the investigator. Immediately stop any further transactions with the suspected fraudster
and avoid responding to their communications. Consider blocking
What do these scams look like? fraudulent account on WhatsApp and other apps. Continuing interactions
There are many scams around, but typically they all seek could lead to additional losses or compromise your personal information
to establish a relationship of trust and confidence with further.
the victim, and then when that relationship has been
established, some form of investment opportunity is 2. Document All Evidence
usually discreetly inserted, which may or may not relate Screenshot and securely store all relevant information, including
to cryptocurrencies. The victim invests in the opportunity transaction hashes, wallet addresses, emails, WhatsApp messages,
and is then strung along until they get suspicious. At that receipts, and any other correspondence. Pay special attention to apps that
point, when they try to withdraw funds, the scammers very fraudsters might be able to delete once they realize the game is up. These
often raise the issue of a tax demand or require additional records will form the backbone for future legal action or investigations.
funds to be sent in order to facilitate a withdrawal. Quite
often, most of the money lost is actually lost during this last 3. Secure Your Digital Wallets and Accounts
phase, where people start to chase their losses. Change passwords to crypto exchange accounts, enable two-factor
authentication to apps, and consider moving remaining funds to a secure
Been scammed? It’s really not your fault cold wallet. Do a careful audit of what systems the scammers might have
Victims often blame themselves, but falling victim to a access to and remove access. This prevents further unauthorized access
scam has nothing to do with being smart or stupid. In fact, and protects your remaining assets.
scammers are particularly adept at targeting emotionally
intelligent individuals who have often succeeded in 4. Alert Financial Institutions and review personal data exposure
business because of that emotional intelligence. That may If non-crypto payments were involved you should also inform your banks
not be much comfort, but it is important to understand and credit card companies about the fraud, especially if any linked
that you have done nothing wrong by falling prey to a accounts or transactions could be affected. Your bank might be able to
sophisticated scam. reverse payments if they are notified quickly and in some jurisdictions the
bank might be obliged to try to recall payments already made. If your
You’ve been scammed. What can you do? personal information has been compromised you may also need to
Here are some immediate first steps to take, but, in consider which other systems fraudsters can gain access to, for instance
principle, to stand realistic prospects of successful recovery through information on your passport, or using your social security
of your funds, you will need to urgently appoint legal and number. If you took out loans on false premisses you might be covered by
investigative professionals with experience in this area. fraud insurance.

20 W.A.D Beyond Global