As cryptocurrencies continue to gain global recognition, digital scammers and fraudsters have turned to other methods such as phishing and business impersonation to continue cryptocurrency frauds and fool people. The digital fraud is a big issue in the cryptocurrency world. A recent study claims that in 2021 more than $7.7 billion in cryptocurrency was duped from people and businesses using frauds. Business impersonation is a major problem for blockchain and web 3.0 businesses because customers lose money and revenue while the original brand loses its reputation. If you or your business is, a victim of online fraud here is how you report it to the authority.
How to report crypto frauds
Are you not sure what to do next after you got ransacked by a cryptocurrency scam, the most important thing you should be doing is filing a complaint as fast as possible to the highest authorities and notifying the incident with proof to the cryptocurrency exchange. It is advised to report frauds as quickly as possible because crypto scammers will not wait long to move funds off the cryptocurrency platform and making it impossible to investigate. The authorities to which you should go to file an online fraud report may vary from country to country. However, the Bitcoin frauds complaints should contain the below information:
Personal information (name, address, telephone, and email)
Details regarding the scammers or the individual taking the funds
Transaction IDs
A unique string of letters and digits used to denote a record of a cryptocurrency transfer from one address to another is called a transaction ID (or TXID). Additionally it is also called the transaction hash. The hash contains information such as the day and time, the sender’s and recipient’s addresses the value of each transaction, the fees, and more. Investigators will want all of the transaction IDs that identify the money you provided to the con artists in order to properly monitor your stolen monies. After an online fraud report, the responsible authorities may electronically identify and trace the transfer history and present location of the stolen currency by utilizing transaction IDs.
Particular details on how you were tricked
Evidence of ownership of the stolen funds
Any other useful information you believe is essential to strengthening your complaint.
Your digital signature
For brands and businesses located in the United States, lodge an online fraud report to the local police station. Furthermore, you can also report your case to the below authorities:
The Federal Trade Commission
The Commodity Futures Trading Commission
The U.S Securities and Exchange Commission
The Internet Crime Complaint Center
Europol is a useful tool for companies with operations in Europe to locate the necessary and competent authorities to report cryptocurrency fraud. If your Member State does not have a specific online alternative, Europol advises filing a complaint in person at your neighborhood police station. Cryptocurrency has a number of built-in characteristics that make it simple for fraudsters to operate, even if the sector is expanding quickly and important players are working to find speedy solutions.
