Crypto investigations

CRYPTOcurrency INVESTIGATIONS

Cryptocurrency Scams

A scam is a fraudulent or deceptive scheme designed to trick someone into giving away their money, other digital assets and personal information. Scammers use various tactics to make their victims believe they are dealing with a legitimate website, a promising offer, a lottery or an airdrop. Their intentions aren’t honest.

A con artist uses psychological triggers like fear, urgency and desire to manipulate his victims into making decisions in the benefit of the scammer. They can use fake investment opportunities, phishing emails or pyramid schemes to lure victims in their trap.

A scammer might also steal your money because of a hack or because they stole your private key.

In 2021, more than 46,000 people reported to the FTC losing over $1 billion to cryptocurrency scams. Scammers are increasingly targeting the elderly. By 2023, IC3 had received over 880,000 complaints with over $12.5 billion in losses. People over the age of 60 lost $3.4 billion, an 11% increase from the previous year. Many of them were tricked into withdrawing large amounts of cash and depositing it into cryptocurrency ATMs on addresses they didn’t control.

We provide a preliminary assessment of your incident. Our investigation includes incident response, an OSINT investigation and monitoring services. We gather information to uncover the identity of the fraudsters, the location of the stolen funds, and the laundering network used by the fraudsters.

CRYPTOcurrency INVESTIGATIONS

Investment Fraud

Cryptocurrency investment fraud are a significant global issue affecting investors worldwide. According to the FBI’s 2022 Internet Crime Report, these cryptocurrency scams saw a sharp 183% increase in just one year, resulting in over $2.57 billion in losses. This concerning trend not only impacts investors but also contributes to funding potential illegal activities.

Scammers may use social media to lure investors into their story. To promote their business, criminals may use fake endorsements and images of celebrities, manipulate software to distort prices and investment returns, or have professional-looking crypto investment websites. But if their story sounds too good to be true, it probably is.

You should be the only one in control of your cryptocurrency wallet. If you didn’t set up your wallet yourself or can’t access your money at all times, it’s probably a scam. You should stop the payment immediately.

Tracelon offers various services to investigate cryptocurrency investment scams. Our investigation will search for leads to identify the perpetrators of the scam, determine the location of the stolen funds, and can facilitate the recovery of your assets.

CRYPTOcurrency INVESTIGATIONS

Romance Scams

In a romance scam, a criminal attempts to establish a romantic relationship through social media or dating sites, with the goal of deceiving individuals into transferring cryptocurrency assets. In 2023, the FTC received 65,716 reports of romance scams, resulting in a loss of 1.179 million. In comparison to 2020, there has been a 63% increase. 

The scammer creates a fake identity and presents himself mostly as an attractive and successful individual. He might have stolen pictures and information to make his profile seem more authentic. He builds up trust and connection with the victim.

After a period of time, he may present promising opportunities in cryptocurrencies or share personal challenges where he urgently needs money, assuring the victim that he’ll repay the debt as soon as he’s able. Which he never does.

The scammer simply vanishes, along with the cryptocurrencies he has stolen. The scammer employs emotional manipulation, not only stealing cryptocurrencies but also damaging the victim’s trust and emotional status.

If you’ve fallen victim to any of these scams, it’s crucial to remember that you’re not alone. Reporting these incidents is essential. It enables law enforcement to gather crucial information needed to combat these scams and safeguard the online community.

Our team has extensive experience handling cases of romance scams. We’re skilled at gathering and organizing evidence in these often complex cases to produce detailed reports with actionable leads for law enforcement.

cryptocurrency investigations

Cryptocurrency Embezzlement

Cryptocurrency embezzlement involves the unauthorized redirection of funds and affects both individuals and organizations. Despite blockchain’s security properties, such as the permanence of transaction records and the use of pseudonyms, fraudsters have developed complex strategies to hide the flow of illicit funds.

They use techniques such as mixers, tumblers, and privacy-focused cryptocurrencies such as Monero. Criminals are also taking advantage of regulatory inconsistencies across different geographical regions to complicate the tracing process.

Tracelon uses blockchain analytics tools to track funds and identify the theft transactions, supporting the recovery of embezzled assets. We can rely on a network, working with cryptocurrency exchanges, swapping services, and other relevant stakeholders. We inform law enforcement of any relevant information that may help build your case.

If you are a victim of cryptocurrency embezzlement, quick action is essential. Early detection and intervention can greatly improve your chances of recovering your assets. 

cryptocurrency investigations

Compromised Wallets

Noticing unauthorized transactions in your wallet is a sign that it may have been compromised. Various factors such as malware downloads, phishing sites, or leaked private keys can compromise the security of your wallet.

Tracelon’s first step is to conduct a thorough investigation to determine the cause of the breach, trace the stolen funds and gather relevant information. Our role extends to facilitating communication with law enforcement and other essential cryptocurrency services to limit further financial damage.

Cryptocurrency investigations

Ransomware and Blackmail

Ransomware, the demand for cryptocurrency ransoms, is a significant and growing cyber threat. Over the past few years, it has become one of the fastest growing and most damaging forms of cyber crime.

Ransomware is a dangerous form of cyberattack in which criminals prevent access to computer systems or threaten to release data unless a ransom is paid. A type of malware, such as a virus or Trojan horse, infects a victim’s computer and manipulates the infected system so that the victim is unable to use all or part of the computer system and the data stored on it. The victim usually receives a pop-up ransom note shortly thereafter, demanding that the victim pay a ransom to regain full access to the system and files.

Blackmail is a crime in which the victim is threatened with revealing information about a person unless the victim pays money.

Tracelon is committed to building stronger defenses against these threats through public-private partnerships and strategic information sharing. Our customized solutions are designed to help individuals and organizations strengthen their cyber defenses against ransomware and blackmail.