In the world of financial crimes, there’s a category of scammers even more unscrupulous than others: those who take advantage of those who have already suffered losses due to fraud. In this regard, Decripto offers a free preliminary consulting service to determine whether the lost money is recoverable or not. These are deceitful individuals who, taking advantage of victims’ desperation, promise to recover lost funds. However, behind these promises lies a dark deceit known as the ‘Asset Recovery Scam‘.
The mechanism of scams
The scam is straightforward: scammers contact those who have already fallen victim to a financial scam, offering to recover the funds in exchange for an upfront payment. Victims fall into the trap, paying twice for the same mistake. This deceitful practice exploits various human vulnerabilities, including the failure to learn from past mistakes and the desperation of those trying to recover lost savings. Scammers, often the perpetrators of the initial fraud, reach out to victims through emails, social media, or online forums. Driven by hope to recoup their losses, victims pay an upfront fee without realizing they are falling into another deception. Conversely, recovering lost funds involves, first and foremost, the need to work with an industry expert like Decripto, an investigative journal aimed at unmasking crypto scammers, as evidenced by the scoop on the Uefa Football project, to assist in reporting the crime to the relevant authorities and take legal action or recover lost assets.
The ‘Asset Recovery’ scam is based on multiple deceits. Some victims, referred to as ‘repeat victims,’ continue to lose money without learning from past mistakes. Desperation drives others to make rash choices, disregarding the lack of realistic chances of recovery. Furthermore, victims’ limited financial knowledge contributes to their naivety, leading them to pay without questioning the validity of the promises. Deceits extend beyond just charging an upfront fee; scammers invent additional expenses, pushing victims to pay substantial sums in a futile attempt to recover funds. At times, the original fraudsters themselves collaborate with recovery scammers to keep victims in a state of uncertainty, preventing them from filing complaints with the relevant authorities.
The authorities’ alarm
Regulatory authorities and consumer advocacy associations are stepping up efforts to warn consumers about the risks associated with fraudulent recovery services designed to exploit the desperation of those who have fallen victim to crypto scams. The alert comes from the United States, both from the Commodity Futures Trading Commission (CFTC) and Binance’s Global Intelligence and Investigations, which have identified recurring patterns of aggressive advertising on platforms such as social media:
- Advance fees: authorities warn about the tactics used by some recovery services that demand fixed upfront fees regardless of the outcome of their activities. The United States’ Federal Trade Commission (FTC) highlights the illegality of demanding payments within seven business days of money delivery, emphasizing that fees can take various forms, such as “maintenance fees” or “administrative fees.” Victims are advised not to share sensitive data, like banking information, with such services.
- Connections to previous scams: government agency investigations indicate that many of these fraudulent recovery services are closely linked to investment scam networks. Authorities recommend users research employees of such companies through platforms like Google or LinkedIn, which often reveal connections to companies involved in legal actions or with negative reviews.
The risk of private entities
Investigators or private agencies that promise to trace stolen funds using blockchain technology also require upfront payments. Although different from fraudulent services, the quality of results obtained through automated tools raises concerns. Some distinguish themselves by claiming to provide only ‘pre-recovery services,’ and Binance’s stance is clear in not processing requests from private investigators without involvement from law enforcement. A viable alternative to private investigators or agencies is to turn to our journal for immediate contact with our team of experts, who analyze transactions and trace the path of funds, providing a detailed report on which funds theoretically can be recovered and which cannot, initiating discussions on potential legal actions.
Report to law enforcement agencies
Binance advises victims to report scams directly to law enforcement, following specific procedures such as the FBI’s IC3 in the United States or national police agencies for those living in the European Union. Providing comprehensive details, including messages, contact information, and relevant crypto transactions, is crucial to facilitate an effective investigation
The key to be safe from these scams is to categorically refuse to pay any upfront amount. Legitimate recovery specialists only request payment after actually recovering the funds. Stay vigilant, learn from past mistakes, and avoid falling into the trap of ‘Asset Recovery’ frauds again.
If you have been scammed online, fill out our form. Our team of analysts will provide you with a free pre-analysis on the recoverability of your lost funds and advice for subsequent actions, including legal ones, aimed at reimbursing the stolen money.