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FBI shuts down websites involved in crypto recovery scams

GrafaGrafa2024/09/16 03:40
By:Mahathir Bayena

The Federal Bureau of Investigation (FBI) has seized websites linked to fraudulent cryptocurrency recovery services, targeting scams that exploit victims of crypto fraud. 

The FBI’s San Diego office announced that it had shut down the websites of three companies—Mychargeback, Payback Ltd., and Claim Justice—that falsely claimed to recover lost or stolen cryptocurrency. 

According to the FBI, these companies "have no track record in doing so" and were instead deceiving victims through misleading practices.

These companies claimed to specialise in recovering lost crypto funds but often failed to deliver results. 

The FBI explained, “Representatives of these companies often advertise strong success in recovering victim funds but have no track record in doing so.” 

They typically charged high upfront fees and sometimes demanded a commission if funds were supposedly recovered. 

To appear legitimate, they used extensive social media advertising, including fake reviews and endorsements, which misled victims into believing they were credible.

Victims were often drawn in by these false promises, paying large fees upfront with hopes of recovering their lost assets. 

The FBI detailed how these companies would sometimes claim to be affiliated with law enforcement or financial institutions to build trust. 

“If anyone claims to be affiliated with law enforcement,” the FBI warned, “individuals should verify their identity before sharing any information.”

To help the public avoid falling victim to these scams, the FBI has offered several recommendations. 

They advise conducting thorough research on any recovery service being considered, avoiding interactions with unknown individuals offering unsolicited help, and never sharing personal financial information. 

Potential victims are also encouraged to report scams through the FBI’s Internet Crime Complaint Center.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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