Reporting a Bitcoin Scam

Everything new has a stir of excitement and uncertainty. It is this uncertainty in people’s minds that fuel the possibility of dark deceit. Cryptocurrency is still a novice as compared to fiat currencies. People are aware of it but not really well-versed. This significant shift will take a while. The popularity of the currencies has leveraged cryptocurrencies to rise from the status quo.

The market for the cryptocurrencies during the pandemic has performed well for itself. This has shown the potential that cryptocurrencies hold. With this positive news, many illegal activities attached to it have been reported. People who have never invested in cryptocurrency have fallen prey to some Ponzi schemes. Earlier, too, there existed such plans in the disguise of good return investments like that of the ‘Cryptoqueen Scandal.’

The advantage that such scammers are taking is of the ambiguity that people have before investing in cryptocurrency. Many believed that their investment is reckoning profits as they visibly saw steady graphs and could not make sense that they were actually fake. They weren’t even familiar with cryptocurrency’s nature, to begin with.

Very little do they also know that many countries don’t have cryptocurrencies as part of their financial, legal framework. So, when these victims choose to report the scams, they do not have any decree under which they can register their complaint. You will have to immediately report to police officials with certain documents that can help track these scammers if you find yourself in one such case. The documents that would be required are-

  1. A written outline of the entire incident with details

This must include how they contacted you and what their offer was, including how the transaction was carried out. If any portfolio like a website or an app that they used must also be shared.

  1. Address of Bitcoin

BTC has addresses that make it easy to track its endpoint.

  1. Amount of Bitcoin involved

There is no guarantee that his amount can be recovered but might be essential for investigation.

  1. Addresses from-to of the Bitcoin

It will keep track of the end to end transaction as otherwise tracking them is challenging.

Some talks and consideration of protection against such scams are being explored to be structured. Till then, there is a really plain and simple method, described above, that people can adopt in case they find themselves in a treacherous trap.