FBI Guidance for Cryptocurrency Scam Victims (2024)

FAQs

FBI Guidance for Cryptocurrency Scam Victims? ›

Check the token and address on an open source blockchain explorer to see if the address has been labeled as suspicious. Continue to educate yourself on impersonation tokens and address-poisoning attacks. If you have fallen victim to a scam, report it to the FBI's Internet Crime Complaint Center at IC3.gov.

By examining the blockchain, experts can follow the flow of funds from the victim to the scammer. This process helps identify potential avenues for recovering stolen cryptocurrency. Experts utilize sophisticated tools and techniques to analyze blockchain data, providing valuable insights into fraudulent activities.

The FBI warns Americans against using cryptocurrency money transmitting services that are not registered as Money Services Businesses ( MSB ) according to United States federal law ( 31 U.S.C.

Legitimate crypto recovery services specialize in assisting individuals to regain access to their digital assets through technical means, such as data recovery from damaged storage devices or forgotten password retrieval.

The scam starts similarly as an online relationship, but instead of asking for cash, the scammer convinces the victim to invest in cryptocurrency. To demonstrate the returns on investment, victims are directed to websites that appear authentic but are instead controlled by the scammer.

In case you can't recall the lost asset, use the block explorer associated with your missing transaction to search the address of the wallet the funds were sent from or the Coinbase address they were sent to. Check the results for transactions involving assets that Coinbase doesn't support.

This could be as simple as creating a website intending to defraud visitors out of their Bitcoin. Depending on the amount defrauded, defendants face between 1 and 30 years in prison, and $1,000 to $10,000 in fines.

Yes, Bitcoin and other cryptocurrencies can be traced. Transactions are recorded on a public ledger, making them accessible to anyone, including government agencies. Centralized exchanges provide customer data, such as wallet addresses and personal information, to the IRS.

Criminals use cryptocurrencies such as Bitcoin for various purposes including laundering dirty money, scamming victims out of funds, defrauding investors, monetizing ransomware, or buying illicit goods.

What happens if you get scammed out of crypto? ›

File a report with the FBI. Make sure to include your wallet address (the digital address where you store your cryptocurrency), the scammer's wallet address, and the transaction hash for each transaction. If you need help filing a report, our Office can assist you. File a complaint for assistance.

Report the scam to your crypto exchange

By providing your exchange with important details about the scam, they may be able to identify the scammers and prevent them from perpetrating future scams. In rare cases, they may be able to freeze the perpetrator's account and potentially return the stolen crypto.

A common misconception is that bitcoin, or other cryptocurrency is impossible to trace and recover. This isn't true, but the process can be complex and these sophisticated scammers will not make it easy.

If you believe you or someone you know may be a victim of a cryptocurrency scam, immediately submit a report to the FBI Internet Crime Complaint Center (IC3) at www.ic3.gov or contact your local FBI Field Office and provide as much transaction information as possible.

If they find a Bitcoin transaction related to a crime, they can work with the FBI to track some crypto funds internationally. Besides analyzing available data, authorities can also request information from centralized exchanges. As a rule, exchanges are obligated to share that information.

Federal agents warn that thieves are setting up a fake website, advertising a new cryptocurrency. According to the FBI, that website usually has lots of information on it and looks sophisticated, clean, and legitimate. The only problem is that the supposed cryptocurrency they're advertising is fake.

If you've been a victim of fraud, identity theft, or deceptive business practices, you can report them to the Federal Trade Commission. In 2022 alone, the FTC was able to issue more than $392 million in refunds to people who lost money to illegal business practices.

Partial recovery: In some cases, some of your stolen crypto might be recoverable. This could involve freezing funds on exchanges, working with law enforcement to track transactions, or utilizing specialized tracing services.

Coinbase Account Protection does not cover reimbursem*nt of funds that you voluntarily sent to a third party in connection with an investment scam or otherwise, or if you mistakenly bought Digital Currency or sent Digital Currency to the wrong addressee.