For those that aren’t aware, it’s possible for scammers to go the extra mile and offer false hope for recovering the loss that’s already been stolen from you, by targeting investors when, behind the scenes, it’s actually a broker scam, mostly targeting those affected from the crypto crash in 2022.


To avoid these crypto recovery scams, it’s recommended that you look out for these signs:

Empty Promises

Cryptocurrency scammers may try to reach out to you via phone, email, text, and even social media. If by chance they get in contact with you listen to the words that they may use after they are done posing as government officials, private recovery experts, or law enforcement they will begin to claim that your losses are linked to market manipulation and that they can get it back to you in the blink of an eye after you pass on all your private information.


Unfortunately, it’s not common for these people to reach out to you. Although they monitor the crypto tax landscape, there is so much that goes that it’s unlikely they are reaching out to you to offer you a refund. The bad news is that crypto is constantly fluctuating and general drops within the market are not retrievable.


The same principle applies to your scam losses, it’s highly likely that the ones promising recovery are the ones that stole it from you in the first place, taking their persona of government officials or private recovery experts claiming to have some good news on your current claim and the only way to get it back to you is if you pay a fee or access to your account. If you fall for this method, this could be even more devastating and can involve more steps for your wealth recovery attorney to take to recover your funds.

Tips for Avoiding Crypto Recovery Fraud

Here are a few extra measures you should take if contact does occur:  

Verify Identities and Claims

Don’t take all the information they give you and use it. The emails and websites they give you do exist but that doesn’t mean they are honest. Therefore, take all that information and look up the relevant agency. For example, if they are claiming to be your local law enforcement, reach out to them yourself and verify the information they have been feeding you, and ask as many questions as you can, if the name is verified ask to speak to them straight away.


Rely On Known Contacts

Sometimes, if it’s the criminal that scammed you in the first place, they are already aware of the details of the case which can be convincing. We recommend that they stick solely to the information that’s provided on the records to contact on your case. Reach out to them directly, ask if there are any new developments in your case, and report any further fraudulent activity.


Avoid Payment Fees

This should be a huge red flag, any legitimate recovery firms would never collect their fees until all the work is done and you have recovered your losses. As your investment fraud attorney wil let you know, any mention of a firm collecting payment before recovery should be avoided.


Demand a Contract

No reputable recovery firm would not have paperwork on hand, ask to see it before you agree to do anything. If there is hesitation or a delay, end all communication and immediately report to the correct authorities.


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