The cryptocurrency market can be a volatile and risky place, and unfortunately, this makes it a prime target for scammers. Following the 2022 crypto crash, many investors found themselves at the mercy of fraudsters offering bogus crypto recovery services. At O1ne Mortgage, we believe in safeguarding your financial well-being. In this article, we will explore how to avoid crypto recovery scams and protect your investments. For any mortgage service needs, feel free to call us at 213-732-3074.

Avoid These Crypto Recovery Scams

Scammers use various tactics to deceive investors. Here are some common methods:

Promising to Recover Market Losses

Fraudsters may pose as government officials, law enforcement officers, or private recovery experts, claiming they can recover your trading losses. They might use technical jargon and bogus credentials to sound convincing. However, the sad truth is that losses from drops in crypto value are generally not recoverable. Anyone claiming otherwise is trying to exploit your misfortune.

Promising to Recover Prior Scam Losses

If you’ve been scammed before, criminals may target you again, claiming to have recovered your funds. They might ask for a tax or administrative fee to return your money. Complying with their demands will only result in further losses.

Touting Phony Expertise

Scammers often create fake websites and social media accounts to tout testimonials from made-up customers. They may even get coverage from understaffed news outlets. Be wary of any unsolicited advice or links to fraudulent websites.

How to Recover Crypto Assets

While reversing market losses is impossible, there are legitimate recovery services that can help you regain access to your crypto assets under certain circumstances:

• If you’ve lost access to your crypto wallet due to a computer crash or lost passwords, data-recovery experts may be able to help by extracting the contents of damaged hardware.
• If your crypto exchange files for bankruptcy, notify the court of your claim by completing a proof of claim form. Be prepared to wait a long time and possibly recover only a fraction of your lost funds.

Tips for Avoiding Crypto-Recovery Scams

Here are steps you can take to protect yourself from crypto scammers:

Verify Identities

If you receive a crypto-recovery offer, don’t respond using the contact information provided. Look up the relevant agency and reach out yourself to confirm the legitimacy of the communication.

Rely on Known Contacts

If someone claims to be following up on a past fraud incident, use information from your records to contact the individuals who handled your case. Report any contacts from phony investigators.

Beware Shady Contact Information

Steer clear of anyone who reaches out with suspect contact information or refuses to provide it.

Avoid Payment Ploys

Legitimate asset recovery services never collect fees upfront. Be wary of anyone asking for payment in the form of gift cards or wire transfers.

Insist on a Contract

No reputable service provider will start work without providing an overview of their services and associated pricing. Insist on reviewing paperwork before agreeing to any work.

Guard Personal Info

Never give out your bank account information, Social Security number, passwords, or private crypto key to anyone promising recovery of lost crypto value.

Recognize Promises That Are Too Good to Be True

Investments involve risk, and crypto is riskier than many. There are no quick fixes for losses, and anyone offering one is not trustworthy.

What to Do if You Fall Victim to a Crypto Recovery Scam

If you believe you’ve been victimized by crypto recovery scammers, take the following steps:

• Report the incident to the authorities using the FTC’s interactive form. If your holdings include crypto futures or other derivatives, alert the U.S. Commodity Futures Trading Commission (CFTC).
• If you’ve provided criminals with bank account numbers, passwords, or other personal information, change passwords immediately and notify the relevant institutions.
• If you believe your Social Security number has been stolen, place a fraud alert or security freeze on your credit reports at the national credit bureaus.

The Bottom Line

Criminals are eager to exploit your suffering and anxiety, adding to your financial losses with empty promises and false hope. If you’ve been affected by crypto market losses or swindled out of your holdings, it’s natural to seek a way to recover what you’ve lost. However, pursuing phony solutions could just add to your problems. Be mindful of the predator’s tactics and take care to avoid compounding your losses.

At O1ne Mortgage, we are committed to helping you navigate your financial journey safely. For any mortgage service needs, call us at 213-732-3074. Our team of experts is here to assist you with reliable and trustworthy services.