As cryptocurrency and the blockchain advance, so do crypto scams. Scammers have continued to develop more innovative ways to steal hard-earned funds from you. You also have to be alert to avoid falling victim to these scams.
If you do fall victim, you should also know who to call for people tracing. This is why this article has outlined how you can identify crypto scams and how the Coin Dispute Network can help you track down crypto scammers.
How Coin Dispute Network Tracks Down Crypto Scammers
The Coin Dispute Network aims to protect its clients from losing their cryptocurrency by disputing stolen or lost crypto and giving it back to the rightful owners.
They offer guidance and support on handling such situations, free of charge. The process of recovering your stolen crypto is broken down into four steps, as seen below.
Your Cryptocurrency Is Located On The Blockchain
The first step that the Coin Dispute Network uses to recover your stolen crypto is to analyze the blockchain and locate your stolen funds. This will enable the hitch-free tracing of the wallet address to which your funds have been sent.
This process will be much easier if you report as soon as the incident occurs. Not writing as soon as the issue occurs gives the crypto scammers time to transfer the funds to cold storage. So, you must always report a scam as soon as it happens to prevent the scammer from getting away.
A Dispute Report Is Created
After your fund is located, a dispute is created as to the authenticity of the transaction. You must make a formal dispute report to catch the scammers.
The information from their KYC is then used to identify them, and they can face the consequences of their actions. This is why the CDN works hand-in-hand with the Department of Police.
Coin Dispute Network Leverages Their Networks Within The Blockchain
The Coin Dispute Network is a stakeholder within the blockchain community, so they have extensive contacts and deep connections within the blockchain community.
They can analyze the transaction history and contact necessary vendors within the community. Thus, they leverage these contacts to recover your stolen or lost funds.
A Stop-Recover Operation Is Done And Your Funds Are Recovered
Lastly, the Coin Dispute Network monitors the blockchain and track down the scammer’s activities to perform a stop-recover operation as soon as the scammer attempts to withdraw the funds.
How To Identify Crypto Scams
Some ways to identify a crypto scam include; a promise of huge gains with little investment, a demand that you only pay for goods via cryptocurrency, and a guarantee of free money or sure increase.
A sense of urgency to quickly invest in the cryptocurrency, poorly written whitepapers, or content. In all, these crypto scams are not 100% full-proof. You must be careful before performing any transaction or clicking any suspicious link.