For many, digital currencies are a way to earn good money. But the issue of security in the field of cryptocurrency requires special attention. As fraudsters exploit this sector due to its novelty, high-tech nature, and poor oversight by regulatory authorities. Often scammers work in groups, using complex social engineering schemes to seize users' assets.
To protect your crypto from scammers, you need to understand what methods swindlers might use to deceive people. You also need to know the mechanisms by which stolen cryptocurrency can be returned.
Fraud schemes for stealing digital currencies
There are several common schemes used by fraudsters to steal cryptocurrency.
Fake technical support. This is one of the easiest methods for stealing digital currencies. Scammers offer account registration via messenger (such as Telegram). All actions by fraudsters are carried out through some activations and account verification. As a result of obtaining a private key or seed phrase, the attackers withdraw the crypto to their wallet within minutes.
Cryptopil represents small fractions of digital currencies. Criminals send them to the addresses of "active wallets." The blockchains of these particles are completely open. They allow tracking all the movements of coins. With this method, swindlers gain access to a person's assets. Then the attackers begin to act aggressively: blackmail, extortion, or brute force.
Malicious cryptomining (cryptojacking). It involves using malicious code embedded on a website without the user's consent. As a result, the computer's performance slows down, and the user's security is compromised.
Fraudsters also create fake cryptocurrency exchanges and wallets.
Is it possible to return bitcoin stolen by scammers
Definitely saying yes is not possible. Because it all depends on several factors:
- the method used by the scammers. If the coin transfer was anonymous and through a private channel, the return will be difficult;
- scale of the fraud. Priority will be given to the theft of large sums. It's much easier to track a large transaction than a small cryptocurrency transfer;
- jurisdiction – most criminals operate internationally. Because of this, the choice of investigating authorities is controversial, complicating the process of returning the crypto;
- availability of evidence. Identifying the scammer will make the process faster and easier. The presence of facts confirming the theft of digital assets is also important.
These aspects help determine the chances of returning the stolen money and also learn how to return cryptocurrency from attackers.
Basics of conducting an investigation in the field of crypto crimes
Investigations in the cryptocurrency sector have some difficulties. This is due to the lack of a regulatory body. The mechanism for returning cryptocurrency involves conducting a small investigation.
There are 4 stages of dealing with stolen digital assets:
- Theft process – when a trader or investor discovers unauthorized cryptocurrency withdrawal, they contact law enforcement. The victim usually provides all possible information about the incident;
- Forensic analysis – at this stage, all digital evidence is monitored. This is done with the help of a special person – an AML officer;
- Transaction evaluation. Here, data on cryptocurrency operations are analyzed. Stolen money is tracked, and any wallets or exchanges involved in the fraud are identified;
- Coin seizure. This only happens if a suspect has been identified.
Theft of cryptocurrency is a five-minute matter, but its return can take a long time. Conducting an investigation without an AML officer is almost impossible. They cooperate with law enforcement, and their task is to study the conducted transactions in detail. This helps to identify the initiator of the theft and the place of the fraudulent operation. Once the AML officer identifies the scammer, the police take over. They gather evidence for an arrest and facilitate further legal proceedings.
How to protect yourself from theft of digital assets
By following a few simple tips, you can independently prevent the theft of coins.
It is recommended to store all passwords in a hard-to-access place so that no one can access them. Never disclose your mnemonic phrase (SEED phrase) to outsiders. Under no circumstances should you click on links that seem suspicious, as they may contain malicious software.
Another security measure is two-factor authentication for personal accounts when registering a cryptocurrency wallet. It's also worth creating complex passwords for crypto wallets. Experts strongly advise using multiple services for storing digital assets.
In addition, it is recommended to keep most coins in cold wallets.
Returning cryptocurrency assets is a complex procedure. The theft of coins is a serious problem, which requires developing new effective methods for solving it. The main difficulty is that there is no necessary control at the legislative level. Therefore, the security of investors using cryptocurrency is at great risk. Usually, users give up and do not make efforts to return the coins stolen by attackers. In any case, one should not delay but immediately seek help from lawyers and law enforcement. This is the only method that can assist in the return of cryptocurrency assets.
Protect your cryptocurrencies and don't let yourself be deceived by cybercriminals.