There are many scammers in the crypto world looking to take advantage of people and take their crypto funds or money. While there are a variety of scams, such as ransomware, Ponzi schemes, fake exchanges, face ICOs, and so on, most of them use Bitcoin or promise Bitcoin returns, as it is the number one coin in the crypto space. Of course, there are many other scams focusing on either gaining or using the promise of certain coins, but today, we will be focusing on users who have been scammed of their BTC.
So, let’s say you got scammed and lost your Bitcoin or money, what are you doing now? Well, that depends on the method of finance you used.
If You Paid Using Bitcoin
If you paid your scammers using Bitcoin or other cryptos, it is very hard to do something, as such transactions are irreversible. Also, depending on the jurisdiction, there are very few authorities to whom you can report to. This is one of the disadvantages of assuming control of your own finances.
However, you may attempt some strategies to try and salvage some of your funds:
1. Threaten Them
If you lost your Bitcoin on a trading platform, crypto casino, or Ponzi scheme, send them an email in which you tell them if they do not return your money, you will report them to the financial authorities. While this may not work most of the time, it’s worth a try.
2. Report Them
Report them to the relevant financial authorities of your country or the state in which the company operates so that the government can take action. If more complaints add up, then maybe a lawsuit can be started, or other legal measures can be taken against them.
3. Contact Crypto Wallet Provider
If you inform your wallet provider that the last transfer you made was to a scam, the wallet provider may cease all transfers with the scam, thus preventing others from sending money to it and the scammers from receiving the funds.
4. Find Legal Advice
While lawyers’ fees can add up and surpass the sum you lost, in some circumstances, it may be helpful to get to see if you should seek retribution for your loss and what are your chances of getting a reimbursement.
5. Post Experience Online
Make your story known through social media, so that other investors do not lose their funds.
If You Paid Using Credit Card
Maybe you’ve been duped into paying a Bitcoin scam with a credit or debit card, but this is somewhat better news, as you can use chargeback to restore funds, and you also benefit from protection if things go wrong under section 75 of the Consumer Credit Act.
But this claim also depends on the type of scam in which you have lost your money. Section 75 of the Consumer Credit Act or chargeback can be enacted when you paid for goods or services, and the scam breached their contract by not providing those products or they disappeared.
Another condition that must be met is that the product or service you lost your money on must have a cost between £100 and £30,000.
If You Paid via Debit Card
If you paid your funds by using a debit card, you can apply for a chargeback as well with your bank. While the exact guidelines differ based on your provider, the chargeback feature applies to all debit card purchases for goods costing less than £100. But there are no certainties that the bank will restore your loss.
If You Sent Money via Bank Wire
In the case where you sent your funds to the scam platform directly by wiring them through your bank account, then you should immediately contact your bank. You should also file a complaint to your bank specifying that it was a transfer to a scam, and the bank can try and recuperate the funds when they receive your notification.
Payments via PayPal
Let’s say you bought or paid for a Bitcoin mining service through PayPal, and you didn’t receive the service or product from the scammer, you could use the PayPal Buyer Protection to recuperate your funds. However, keep in mind that there are some limitations to using this protection scheme.
In the case where the scammer can create a fake PayPal payment page to collect your bank details. If you lost money through this type of scam, then you will not be able to apply for the PayPal Buyer Protection Scheme.
This is because the scammer just made use of their brand without their knowledge to appear legitimate and to get you to put in your account details. Thus, PayPal has nothing to do with the transaction and is not obligated to enact its policies.
Payments via Other Wire Services
When using wire services, such as MoneyGram, PayPoint, or Western Union to send money to a Bitcoin scam, there are policies that can get the user his funds back. The services mentioned above offer tips on how to avoid fraud and scams, but that is about it.
If a scammer got access to your bank account or credit card, then you can forward a claim to your bank saying it was an illegal transaction.
Or if you use your card to pay for a certain service with it, and then you find a larger sum has been withdrawn without your consent or the money has been subtracted by someone else, you can also make a claim about the additional amount that has been taken from you.
According to the Payment Services Regulations 2009 and the Banking Conduct of Business, banks and building societies are obligated to provide refunds in such situations. If an unauthorized transaction occurred from your account, be sure to report it as soon as you find out about it.
We imagine that there is nothing worse than being scammed out of your hard-earned money or Bitcoin. The suggestions provided above might not always help in getting your money back, but you should always try whatever options are available before giving up. With that said, please proceed with caution before giving any of your money to any kind of service, company, or platform.
Featured image: thedailybeast.com