What to do if you are scammed. If you think you've been interacting with a crypto scammer, and have paid them money, contact your bank and other important services and let them know. You can ask for the fraud department, which will guide you through steps to secure your finances and other information.
In some cases, it may be possible to recover a portion or all of the funds through legal means or assistance from law enforcement agencies. However, it's important to note that recovering funds from cryptocurrency scams can be challenging, and in many instances, complete recovery may not be possible.
If money was stolen from you through a virtual currency scam, report it to your local police. If they resist taking your report, persist so that you have a record of the loss. Also report it to the FTC at ReportFraud.ftc.gov. To learn more, check out the FTC's additional guidance at ftc.gov/cryptocurrency.
Be aware, scammers can disguise their name so they appear to be someone you have saved in your contacts, like “mum” or “dad”. The ACSC is here to help all Australians affected by cyber incidents. Call our hotline 24/7 on 1300 CYBER1 (1300 292 371) if you need help or go to ReportCyber.
In Australia, if a customer transfers funds to the wrong account, the bank that sent the money is largely responsible for dealing with the complaint, rather than the bank that received it. They also have no obligation to repay scam victims.
If you present reasonable evidence that you were the victim of a scam, your bank or credit card company may be legally obligated to refund the money. Government agencies that protect consumer rights can help you get your money back if your bank or credit card company refuses to cooperate.
What to do if you are scammed. If you think you've been interacting with a crypto scammer, and have paid them money, contact your bank and other important services and let them know. You can ask for the fraud department, which will guide you through steps to secure your finances and other information.
Many VASPs, cryptocurrency exchange platforms and decentralised finance firms demand identity verification information when creating accounts. If a scammer has used such services for cryptocurrency dealings, this personal data can be accessed with a civil subpoena or criminal warrant.
Can You Chargeback Cryptocurrency? Transactions using cryptocurrencies like bitcoin aren't subject to chargebacks. In cryptocurrency transfers, the funds are placed in escrow until the transaction is confirmed by both parties. Once the transaction is complete, there is no way to reverse it.
If you think you have been the victim of a cryptocurrency scam, contact your bank immediately and report it to Action Fraud, the National Fraud and Cyber Crime Reporting Centre.
There are several methods to convert Bitcoin into cash. The most common options include using cryptocurrency exchanges, peer-to-peer platforms, Bitcoin ATMs, or selling Bitcoin directly to individuals or businesses who are willing to buy it for cash.
Due to the nature of digital currency protocols, transactions cannot be cancelled or altered once they are initiated. This is what allows merchants to accept digital currency without the risk of chargebacks.
Cryptocurrency Usually Isn't Totally Anonymous
The transparency of the crypto realm is often a good thing, but it's always worth noting that your transactions will almost never be untraceable due to blockchain explorers, and there is a chance of your identity being uncovered through your wallet address.
Bitcoin can be stolen if a hacker gains access to your wallet. Hackers can accomplish this in one of two ways: 1) Directly, through email phishing scams that give hackers access to your wallet, enabling them to transfer your Bitcoin into theirs.
Investigative Use – Bitcoin is often used on the dark web, which is a part of the Internet that requires special software access. The dark web provides a layer of anonymity for illicit transactions using bitcoin. However, it is still possible to trace seized bitcoins back to these dealings.
Former crypto titan Sam Bankman-Fried pleads not guilty to fraud. The 30-year-old FTX founder, formerly worth an estimated $26bn, could face a sentence of up to 115 years in US prison.
Consider filing a complaint with the Federal Trade Commission. If you've been a victim of fraud, identity theft or deceptive business practices, filing a consumer complaint with the FTC may be a good option for you to potentially recover money from a scammer.
Stop all contact with the scammer
Once you realise you are being scammed, do not continue the conversation. Hang up the phone. Don't reply to emails or letters scammers have sent you. If you have been scammed online, block the scammer from contacting you.
The chargeback process lets you ask your bank to refund a payment on your debit card when a purchase has gone wrong.
Most banks should reimburse you if you've transferred money to someone because of a scam. This type of scam is known as an 'authorised push payment'. If you've paid by Direct Debit, you should be able to get a full refund under the Direct Debit Guarantee.
If you paid a scammer with a debit card:
The bank must provide a provisional credit to your account within 10 days, and it has up to 45 days to complete the investigation. If the bank determines that the charge was fraudulent, it must refund your money and remove the charge from your account [*].
The easiest way to become a victim of a bank scam is to share your banking info — e.g., account numbers, PIN codes, social security number — with someone you don't know well and trust. If someone asks for sensitive banking details, proceed with caution.
If you've recently purchased crypto via card, ACH or Open Banking, your crypto may be subject to a holding period. During a holding period, you cannot withdraw from your cash (GBP, EUR, or USD) account, send funds to your DeFi Wallet, or send to an external wallet.