The emergence of digital assets
Cryptocurrencies were the catalyst for all the scams and fraud that the internet had to offer to its people. The arrival of digital assets did not go unnoticed. For instance, the infamous MtGox incident took place in 2014, in which 800,000 bitcoins worth a whopping $1.6 billion were stolen from the Tokyo-based company. As a result, people became aware of the system’s shortcomings and con artists went on a looting spree. From that moment on, Cryptocurrencies received more than their fair share of hate, jokes and heated arguments that people made in this blog, and for good reasons. They turned out to be complete crap from a monetary perspective as well as from a lack of transparency and trust factor.
The rise of blockchain
In January 2018, I made the controversial statement about scam ethereum scams, on twitter. Some negative comments came back, and naturally, the usual gossip in the crypto community ensued.
The truth is this: Cryptocurrencies are growing fast in an environment where most companies are struggling to make their mark. It’s a hungry space. People are seeing people like Rob Meurer and his ponzi scam all over social media. Do you really think people like that are going to be overlooked? Unfortunately, the answer to that question is “no.”
Before anyone realizes what is happening, scammers will be everywhere, very fast.
Stealing money like this requires a lot of teamwork. The scammers create fake accounts, like we have seen. And then start to build up trust with users.
Fund recovery companies are specialists in fund recovery. A lot of well-known scam operators are popular on ICO forums, social networks and other crypto communities and these scammers tend to launch scams and phishing attacks, which are sent to victims in the form of email.
These fraudulent campaigns usually send out fraudulent emails and contain the following content:
“Your account has been frozen due to fraudulent activity on your Ethereum account. There is an opportunity for you to restore your funds and regain access. You will need to pay a fee to fund your account and allow us to recover your funds. Alternatively, we will request that you to transfer your funds to an asset stored at Coinbase and you will be refunded 100% of the funds recovered in 48 hours.
What you should know to protect yourself
The only way to get the money you’ve lost back is by finding the fraudulent perpetrator, filing a lawsuit against them, and winning the case. In most cases, the real perpetrator will not come forward because they will never come forward themselves and cause so much loss to others. You need to hold them accountable for their actions by securing your money and getting it back.
Ethereum scam victims who want to take legal action against scammers need to find the appropriate companies that are only interested in recovering funds lost in scams. At fund recovery company ize, we handle cases like this one exclusively. We have a vast network of lawyers and investigators in different jurisdictions that work tirelessly to bring down scammers and recover funds for victims.
Recognize the signs of an Ethereum scam
One way to spot a scam is to figure out if the recipient of your funds is a scammer. When money starts flowing into your account, the scammer will claim that they want to send you a payment that you’ve authorized by the various measures such as creating an account with your email address and password. Other indicators that the transaction is fraud are the length of time it takes for them to transfer your money and the request for information that you will need to send a payment like a payment address or other validations. These markers are often vague and can provide more clues to the scammer’s methods.
Refrain from sending Ether or other crypto-currencies to someone you don’t know
When receiving a crypto-currency transaction, there are several signs that you should be wary of.
Know your investments before investing
Before investing your funds, it’s essential to identify which type of coin you’d be investing. Which ones are popular and why, or are these new coins worth investing? To answer the latter question, you should look into their developer’s reputations, interact with the developer in a friendly and constructive manner, and learn the security measures the developer has implemented. This process will help you develop a better understanding of the coin’s project’s fundamentals, meaning it’s much easier to make informed decisions.
Furthermore, it’s essential to understand the background of the project’s community.
Always be on the lookout for scams
Many forms of digital attack are being carried out by these so-called cybercriminals. Their objective is to scam you into making online payments, wire transfers, and other automated means in order to receive the software or other materials they require in order to operate the virus or malware.
In the past year, we’ve seen multiple massive blockchain scams emerge. You’ve probably come across the current Bitcoin and Ethereum scams as well as other cryptocurrencies or digital currencies. A lot of people fall prey to scams simply because they lack knowledge of the digital system in which they are involved. So here are the things you can do to avoid falling into scams.