Report a Cryptocurrency Scam

 

Reporting a cryptocurrency scam can help you recover any stolen funds. In addition, it can prevent other people from falling victim to the same scam and potentially help law enforcement agencies stop cybercriminals. It's important to document all relevant information and evidence, including transaction details and wallet addresses. The more detailed your documentation, the easier it is for investigators to trace the scam and prosecute the criminals.

Report cryptocurrency scam can take many forms. Some involve phishing webpages that capture the information you enter. Others impersonate official companies such as Amazon, Microsoft, FedEx or your bank and send you messages on social media or via text, email or voicemail. These messages may warn that your account has been compromised or your money is at risk and ask you to buy and send crypto as a remedy.

Other scams involve fraudulent investment opportunities. Victims are told their funds will grow in value if they invest with the scammer's platform. Eventually, the scammer will close the site and leave with your money. Victims may also be targeted by "agents" who direct them to a crypto ATM, provide a QR code and instruct them to insert cash or other assets into the machine. They'll then tell the victim to send their cryptocurrency to a wallet address they provide.

Older adults are particularly vulnerable to crypto scams, says Amy Nofziger, director of fraud victim support with AARP. The reason is that older people typically have more wealth than other age groups. They also are more likely to own cryptocurrencies and have invested in them for longer periods of time. Scammers know this, and they target this population by using a variety of tactics.

One common way of targeting this demographic is by threatening to make embarrassing or compromising photos, videos or other information public unless victims send them a payment in cryptocurrency. This is a form of blackmail and is illegal. If you get such a message, report it immediately.

In the past, victims of crypto scams have reported being able to recover their funds by reporting the incident to the exchange platforms that were involved. This step doesn't guarantee recovery, but it can make it more difficult for cybercriminals to use other exchanges to steal your cryptocurrency.

Scams involving cryptocurrency often involve complex and convoluted schemes that can be difficult for even the most tech-savvy users to understand. In these cases, it's usually best to seek help from a trusted individual who is familiar with cryptocurrency and can provide guidance.

It's also important to contact your Morgan Stanley Financial Advisor and your local FBI field office if you suspect that you've fallen victim to a crypto scam. It's never too late to take steps to protect yourself, your family and friends.