Digital Currency Scams

Digital Currency Scam

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Some of the frauds we investigated

How It works

Review your case

Based on our experience, we are performing preliminary checks to assess whether your case can result in a substantial retrieval of losses.

Gather the evidence

We then gather every piece of evidence you have from your contact with the scammers along the way.

Investigation Report

We investigate your case and the people who scammed you to provide a detailed Investigation Report.

Action Plan

Get expert help to track and recover your lost crypto with a personalized approach.

Expert Assistance

Our team of experts can guide you through the process of recovering your losses.

Get your money back

Once you successfully execute the action plan, you'll recover your lost funds.

Binary Options Scam: Retrieve Your Lost Funds

As you may be aware, the U.S. Department of Justice (DOJ) and the FBI have conducted an investigation into a number of recovery companies, including Payback. Payback fully cooperated with the authorities throughout their investigation, and we are pleased with their decision to return our website in order to resume our operations in the US.

This inquiry into Payback was an opportunity for us to perfect our product and services and ensure stricter compliance with applicable US law. We look forward to continuing our work helping victims of online scam get their money back.

Your money back guarantee

Retrieving your losses can be a lengthy process, and it all starts with our investigation. Therefore, we must have your trust every step of the way. So, if for any reason you are doubtful, you can ask for a full refund within 14 business days.*

The first step to protecting yourself from frauds and scams is to be knowledgeable of these threats and always be one step ahead of the scammers. But even if you were scammed, there’s no need to worry because we can help and show you how to get your money back.

What is digital currency?

Digital currency is a form of currency that exists only in digital or electronic form. At its core, it’s meant to be a secure and decentralized medium of exchange, often using blockchain technology to record transactions. And due to its potential for high returns, it’s gained significant attention as an investment tool in recent years. However, it’s important to remember that digital currency is highly volatile and shaded in anonymity, which makes it a breeding ground for scammers.

Three important Digital Currencies

Digital Coins:

The original and most valuable digital currency, often seen as “digital gold” due to its limited supply and potential as a store of value. It’s widely accepted and recognized, with growing institutional adoption. It was created in 2009 and operates on a decentralized blockchain network.

Ethereum

The second-largest digital currency by market capitalization, and the most valuable “Altcoin” (a term used to describe digital currencies other than Digital Coins). While its underlying blockchain technology powers a vast ecosystem of projects, including decentralized finance (DeFi) applications, Ethereum itself functions as a digital currency with its own unique features and use cases.

Ripple:

A digital currency designed for fast and efficient cross-border payments, particularly targeting financial institutions. However, it faced legal challenges from the SEC, highlighting the regulatory risks associated with digital currencies. Ripple’s native cryptocurrency is called XRP.

Key points

🔸 Digital Currencies are a brand new asset class that provides enormous investment opportunities – but substantial risks as well.

🔸 Beware promises of quick wealth.

🔸 Do your own due diligence and investigate wallets, websites, and information.

🔸 Avoid risking money you can’t afford to lose.

Is digital currency a scam?

Digital currencies are not a scam by themselves, but they are something like the Wild West when it comes to speculation. That’s why if you want to invest in digital currencies and trade in them, you need to work with a trusted and regulated exchange.

Thankfully, you have a plethora of exchanges to choose from. Perhaps the most well-respected and trusted is Coinbase. Other notable and trustworthy crypto exchanges are Binance, Kraken, KuCoin, and Bittrex. And if you want to use a completely different exchange, make sure to do your due diligence and research before investing any money.

Digital Coins mining scams

Mining is how Digital Currencies like Digital Coins are created, a process known as Proof of Work. Mining requires significant computational power to complete highly sophisticated algorithms to record transactions on the distributed ledger. When “blocks” are mined and added to the “chain,” the miner is rewarded with Digital Coins. Because mining requires an immense power, cost, and infrastructure, many scams seek individuals to “invest” in mining projects, a form of passive income. Thankfully, this scam is less common with the advent of 3rd generation blockchains like Cardano that use a staking system versus mining – no massive power or infrastructure requirements and allows individuals the opportunity to make passive income much easier than with the legacy mining processes.

Digital Coins wallet scams

Digital Coins (and all digital currency) is held in digital wallets. Wallets have two keys – a private key and a public key. A public key is basically like an address to send something to. A private key is what gives permission to spend or send your digital currency. Digital Coins wallet scams involve scams that target new entrants into the digital currency space. Because digital currency is held in digital wallets, many digital currency fraud schemes have come into the space encouraging you to utilize their wallets. These scams involve asking you to send your private key – don’t!

Pump and Dump scams

A fraud that is almost endemic in the digital currency space are pump and dump scams. Similar to what happens to stocks, pump and dump scams involve an individual or entity acquiring a large amount of an alt-coin and then pushing positive news (fake or real) to encourage as many people to buy as possible. Social media platforms are the primary outlet that the pump and dump creators utilize. Once the price has surged, the creators sell at the top and then let everyone else suffer the consequences of rapidly falling prices.

Pyramid Schemes

If you want to learn an excellent example of a pyramid scheme in the digital currency space, look up OneCoin. Pyramid schemes in Digital Currencies are the same as fraud schemes in any other market; the only difference here is that the fraudsters are now capitalizing on the growth of digital currencies to target you and make you believe you’ll become wealthy overnight.

ICO Scams/Exit Scams

ICO stands for Initial Coin Offering. This is similar to the IPO (Initial Public Offering) process – but without the traditional regulatory processes. Between 2016 and late 2018, the digital currency market was consumed with Ponzi-like ICOs that promised new revolutionary technology. Well over 75% of the thousands of coins that entered the market failed, with a large portion of them fraudulent in nature. These fraudsters would push their coin as the most “innovative” in blockchain, making promises with no real product. This is similar to pump and dump schemes, where after the money is made, the ICO vanishes with your funds. As always, be careful if you are choosing an early-stage digital currency. This is especially bad if you time, thoroughly vet, and analyze the project.

High-Interest Return Scams

A growing trend in the digital currency space, specifically the decentralized finance (DeFi) space, is the promise of high-interest rates for yield farming. At its core, what you do is deposit or stake various digital currencies into a DeFi project, which then lends it out or stakes it further and then shares the yield. But be very cautious about any promise of higher than 10% to 15% APR. And, you must avoid the fine print of even legitimate and regulated entities. There are some projects that require you to leave your deposit for up to 90-days in order to earn the highest yield.

Digital Currency Exchange Scams

When Digital Coins and other Altcoins became a tradable market, there were fewer exchanges than what exists now. At the time, more and more exchanges popped up, but not all of these Digital Currency exchanges were legitimate. Many were fronts that looked and appeared to be a place to buy and sell Digital Currency, but the owners of the exchange would take users’ Digital Currency and exit the market. These exchanges were often not platform scams but owners would suddenly pull the plug and take your digital funds.

The most famous scam, Mt.Gox Digital Currency Exchange, was the largest cryptocurrency exchange in 2013 and early 2014. Mt.Gox processed over 70% of all traded Digital Coins and had mismanagement chaos within. Insiders stole billions from the exchange, resulting in the company collapsing. Even today, the company is still slowly initiating its trading return and liquidity of the exchange.

While this is rare today, be cautious of shady or newly growing Digital Currency exchanges that suddenly shut down, report volatile or dishonest volume, and lack transparency.

Fall prey to a Digital Currency scam? How you can get your money back

If you’ve been the victim of Digital Currency or Digital Coins scams, don’t be disheartened. But do the next right actions and work with the correct platform that can recover your assets or coordinate with authorities to track the fraud. Yes, it is possible.

There are many solutions depending on the scam and the nature of the fraud. Many people have recovered Digital Coins and other Digital Currency fraud schemes. It is essential to find the right service to assist you.

Start by contacting the right digital currency fraud recovery expert or legal team. From there, you can start the process of Crypto asset recovery. Time is critical. The faster you follow your work with proper action, the higher the probability of getting your money back.

Document everything, provide as much detail as possible about the scamming process, and try every possible method to get your money back.

What is Crypto Asset Recovery?

Crypto asset recovery is a specialized field that, as the name suggests, recovers stolen digital currencies with the use of cutting-edge blockchain technology. It involves tracking, identifying, and ultimately securing digital assets when they are lost or stolen due to theft, fraud, scams, or other malicious activities.

The Role of Blockchain Technology

Blockchain technology is a bit of a double-edged sword when it comes to recovering assets because of its nature. The good news is that transactions are transparent, which helps track them. The tricky part is that users can be anonymous on the blockchain, which can complicate the process. But don’t worry – our team uses special tools to navigate those issues and find the best way to get your assets back.

Legal Frameworks and Regulations

The legal landscape surrounding crypto asset recovery is always changing, but we make sure to stay at the forefront of regulatory developments and only use tactics that are compliant and effective. We work within the existing legal frameworks to help our clients pursue every actionable avenue to remedy their situation.

A Tailored Approach

Every digital currency scam is unique, and so is every investigation. That’s why we take a personalized approach to every investigation and start with investigation reports and action plans to help locate assets and theft. With these in hand, you’ll be able to go after your scammers and have the tools and evidence you need to retrieve your money.

How to avoid Digital Currency scams

🔸 Verify websites and research the background of people involved in the Digital Currency. Avoid anything that seems vague or not clear. Don’t be in a big rush to quickly download wallet files, take pledges, or visit links.

🔸 Use reputable and regulated exchanges.

🔸 Consult experts in the space or speak with your financial advisor before investing any money in Digital Currencies.

🔸 The temptation to become wealthy overnight in this space is big. Don’t fall into false promises and flashy sales pitches.

🔸 When looking for a Digital Currency exchange to buy and sell Digital Currency, make sure the exchange has regulated oversight, is properly audited, and has a solid reputation for itself or its assets. Any reputable and legitimate exchange will ensure that reviews are all stellar for the platform.

🔸 Be careful about leaving Digital Currency on any exchange for any extended period. If you have purchased Digital Currency in order to invest and hold long-term and anticipate its value to grow in a few years, consider purchasing a cold-storage hardware wallet.

Crypto Scam FAQ

Can you get scammed on Digital Coins?

Scammers and fraudsters exist everywhere, and this is especially true when it comes to Digital Coins. As a brand new asset class, be very careful when it comes to opportunities in this investment space.

How can you spot a Digital Coins scammer?

Digital Coins scammers are just like any other scammer. They will use high-pressure tactics, make you feel like you are missing out on a once-in-a-lifetime opportunity, and show you false promises of riches and results. They will make it all seem too good to be true.

Can you lose money on Digital Coins?

Absolutely! As with any investment in any speculative market, the loss of value and your money is always at an inherent risk. But that is different from losing money because someone scammed you. Loss of value and market gyrations are one thing – but fraud is another.

How We Empower You to Take Action

At Payback, we specialize in helping victims of digital currency scams. We’ll investigate your case, gather evidence, and provide you with the tools and resources you need to go after what was taken from you.

What is digital currency?
Three important Digital Currencies
Is digital currency a scam?
Fall prey to a digital currency scam? How you can get your money back
What is Crypto Asset Recovery?
The Role of Blockchain Technology
Legal Frameworks and Regulations
A Tailored Approach
How to avoid digital currency scams
FAQ

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The types of scams we can help you with

Binary Options

Digital Currency

Forex

Property scams

Credit card phishing

Stock trading

Romance

Other scams

More about Payback and our Fraud Investigation Services

About Payback

PayBack has only one mission: to protect people from frauds and scams online worldwide, whatever it takes. We help victims of online fraud retrieve what is rightfully theirs using our Investigation Reports and tailored Action plans. Although several types of scams have stood the test of time and are constantly growing in number of victims, new scams constantly pop up. Our job is to stay updated on both old and new scams to help the victims and inform our clients on how to stay safe in the future. We aim to be the number one company in the world to whom people can turn when they try to protect themselves from scams or when they need the tools to fight back after being a victim.

How do Our Investigation Reports help retrieve losses?

Very often, recovering losses from a scam doesn’t require a lawyer, court, or the legal system in general. Processes such as ADR allow one to retrieve money lost to a scam without a lengthy legal procedure. Yet to do that, one needs to be familiar with the ADR process, with the intricacies of the bodies involved, and armed with the needed evidence. This is where our Investigation Reports come in handy. The investigation report not only finds and gathers all the needed evidence in one place, but it also provides a suggested Action Plan that guides our clients through the retrieval processes (such as ADR) and shows them step-by-step how to navigate them and what exactly they should do to retrieve their losses.

Do all cases end with a successful outcome?

Unfortunately, no. For example, some scams involve people taking cash from their victims. Such cases rarely have a successful outcome, and we make sure people who come to us with such cases know it. It is very important to us to be transparent with our clients, and we make sure to give them an honest and straightforward assessment of their case and what we believe they can expect in terms of retrieval of losses. So, if we believe you can do nothing to retrieve your money, we will tell you so immediately.

How do I know if I have a chance of retrieving my money?

This is exactly why our “Free consultation call” practice is in place. It gives you a chance to tell us what happened and get our initial thoughts free of charge. Once we present our opinion and similar cases we’ve dealt with before, you can make a more educated decision about whether our services are for you or not. So, before making a decision, secure a free consultation, and let’s move on from there.

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