Crypto scam victims can now use the scam reporting tool to report, track and recover funds

KEY POINTS

  • Internet Crime Report listed 1,500 reports of scams involving crypto ATMs
  • These scams cost $28 million in losses
  • Scam Reporting Tool will help officials around the world catch crypto scammers

Cryptocurrency scam victims are heartbroken as most of them, having lost their life savings, don’t know the steps to report a scam or threat, but a new tool promises to streamline that. process and promises not only to track but also to recover stolen funds.

The unprecedented rise in popularity of cryptocurrency and digital assets has not only attracted many curious investors who want to let their money work for them, but also cybercriminals and malicious actors who want to steal money from unsuspecting victims. Unlike stocks, bonds, and mutual funds, crypto investments are not regulated by any government or central bank and are subject to far less regulatory protection and penalties, making them more attractive to scammers.

The Cryptocurrency Compliance Cooperative, or Crypto3C, in conjunction with cybercrime data sharing platform Cybera, has now launched the scam reporting tool. “This tool is a response to the need for an official point of sale where victims of cryptocurrency scams can report threats and incidents to officials to help track and recover funds. It will also help to identify these nefarious actors and prevent future crimes,” the organization said in a statement.

Scammers use social media platforms to launch financial scams. Photo: Geralt/Pixabay

Victims of crypto scams can use the Scam Reporting Tool to “Report any Bitcoin ATM, online exchange, or crypto-related POS by filling out a brief online form. A criminal complaint will then be filed automatically by the tool to law enforcement officials and blockchain forensic partners.

With Cybera’s date-centric platform, officials everywhere can use data to prevent scammers from victimizing unsuspecting crypto investors and holders. The FBI’s 2021 Internet Crime Complaint Center (IC3) report listed 1,500 reports of scams involving crypto ATMs worth approximately $28 million.

The bureau also received 4,325 complaints with a collective value of approximately $429 million “from victims of trust/romance scams who also reported using investments and cryptocurrencies.”

The scam reporting tool is available on the official website of the Cryptocurrency Compliance Cooperative. “We are committed to providing education to all industry players to create a safer cryptocurrency ecosystem. Part of that involves providing law enforcement with resources and access to data that they can use,” Crypto3C chief executive Seth Sattler said in the statement.

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