No one wants to fall victim to a scam. It’s even worse to lose money in one. Cybercrime victims have been known to lose thousands of dollars to online scams. In worst-case scenarios, people have lost their entire life savings they spent decades building up. No matter how much money was lost, the first question on victims’ minds is whether they can recover stolen funds. Despite the complex nature of the process, fraud recovery is possible. However, there are specific circumstances and factors that can increase or decrease the likelihood of success. Continue reading to learn if fraud recovery is an option for you.
Is Fraud Recovery Possible?
Fraud recovery requires many factors to be successful. The type of payment is important because different methods are easier or more difficult to trace. The identity of the cybercriminal is also a factor. Known cybercriminals can be forced by the legal system or authorities to return the funds. Lastly, how quickly a victim acts is the most important factor for successful fraud recovery.
Our experts recommend that you immediately collect evidence of the scam pertaining to the time and method of payment. You should also report fraudulent charges to your bank as soon as possible.
How to Respond If You Paid a Scammer
Every payment method has a different recovery process. Depending on the form of transaction, they may be reversible or lost forever. Below are our experts’ recommendations when it comes to recovering stolen funds, based on the payment method.
- Credit card payments. Credit card providers will typically reverse fraudulent charges while their internal department investigates the transactions. Victims should contact the company or bank that issued the card immediately and notify them of the fraudulent charge.
- Bank transfers. Contact your bank and alert them of the unauthorized transaction. Request that they reverse the transaction and return your money. The faster you notify them, the better.
- Cash payments. If you mailed a cash payment by U.S. mail, try contacting the Postal Inspection Service. They may be able to intercept the package before it reaches the destination. Once the cash reaches the scammer, fraud recovery is practically impossible.
- Scammers commonly use crypto because these transactions are extremely difficult to trace and reverse. However, crypto fraud recovery is possible. Report the scam to law enforcement as soon as possible to have the best chance of recovering stolen funds.
- Gift cards and prepaid debit cards. Similar to crypto fraud recovery, scammers also prefer to use gift cards and prepaid debit cards. They are extremely difficult to trace, making recovery of stolen funds nearly impossible. Try contacting the company that issued the gift card, alerting them to the scam and need for a refund.
- Payment services or apps. Mobile payment services like Venmo offer protection for certain payments. Transactions for goods and services or toward business profiles can be refunded. However, you should always read the terms and conditions of a payment service to understand their processes fully.
Recovering Crypto and Tracing Blockchain-Based Wallets
Many experts have access to specialized tools, allowing them to perform crypto wallet tracing. This is the process of monitoring and analyzing the transaction history of a blockchain-based wallet. The authorities can work with centralized crypto platforms to trace transactions through different wallets.
They can also request user information about the owner of certain wallets. Experts may be able to tie transactions to an individual, supporting crypto fraud recovery and the possibility of legal action. However, the process of crypto wallet tracing is very complex.
Report the Scam to the Proper Agencies
Many victims of online scams avoid reporting schemes that they fell victim to. They may want to keep it private to avoid humiliation or shame. However, reporting scams is vital. It allows law enforcement agencies to track cybercrime trends across the country and can lead to investigations. Here are the three main law enforcement agencies to report a scam to when you have lost money.
- Local Law Enforcement. File a police report immediately after being threatened or scammed. Make sure to include evidence, such as messages, transaction records, social media profiles involved, etc. You can visit your local police department in person or call their non-emergency phone number.
- Federal Trade Commission (FTC). The FTC has a reporting system specifically for commerce scams. This agency can’t recover money lost to a scam for you. However, they will provide essential support. The FTC can sue businesses, shut down fraudulent websites, and impose fines. Reports to the FTC are also referred to the appropriate local, state, and federal authorities. You can report a scam to the FTC at ftc.gov
- Federal Bureau of Investigation (FBI). While local law enforcement has authority over their locality, the FBI has jurisdiction over the country. You can report scams to the FBI’s Internet Crime Complaint Center (IC3), where they can pursue perpetrators globally. The FBI has connections to international law enforcement agencies to pursue criminals in different countries. You can report a scam to the IC3 by visiting their website.
Why Timing Matters in Fraud Recovery
Timing is extremely important when it comes to fraud recovery. The longer it takes to reverse a transaction, the harder it will be to recover stolen funds. Once a scammer receives a victim’s funds and withdraws them, the fraud recovery process becomes virtually impossible.
Cybercriminals also tend to cover their own tracks by erasing data associated with the scam. Things like deleting messages, moving money around, and withdrawing funds make tracing scammers more difficult.
The Role of Law Enforcement and Legal Professionals
With the identity of your scammer, you can take legal action to recover lost funds. You can file a civil lawsuit for damages, fraud, or whatever else applies to your situation. Class action lawsuits are legal avenues for groups of individuals to hold organizations responsible. It’s important to work with a fraud recovery legal professional to understand all your options.
For scams that cross borders, the International Criminal Police Organization (INTERPOL) is an essential resource. INTERPOL consists of 196 countries that help police communicate with each other in different countries. They can help victims recover scammed money. However, they can also help bring global perpetrators to justice.
How One Man Lost $500K. A Painful Lesson in Investment Fraud
Mr. Richard Giam thought he would never fall for a scam until he learned a painful lesson. In 2019, a friend introduced a forex trader to Giam who shared an investment opportunity. He invested a small amount to test the waters, and he saw the promised return on investment. He continued investing for years and even brought friends and family into the opportunity.
One day, the investor was suddenly charged and arrested for fraud. Giam soon after realized that all of his investments were involved in a huge Ponzi scheme. Giam lost $500K to the scam and many of his friends and family lost money as well. Some of his relationships did not survive the incident. However, many of his loved ones found it in their hearts to forgive him.
A Real-World Story of Crypto Fraud Recovery
A resident of Maine wanted to donate to a friend who needed a lung transplant. She clicked on a link on a social media platform that appeared to be for the friend. However, it actually was a malicious link that extracted tens of thousands of dollars from her bank account.
She immediately alerted law enforcement who worked with the Wisconsin Department of Justice to recover stolen funds. The authorities traced the funds to an online cryptocurrency trading website and recovered over $26,000.
Work with Cybersecurity Experts to Recover from a Scam
Private cybersecurity firms like Cyber Investigation Inc. have deep knowledge of scam tactics and how to help victims recover. By acting quickly and strategically, they will work to improve the chances for successful fraud recovery.
Working on your behalf, these experts can also trace the digital footprint to uncover a perpetrator’s geolocation and identity. While recovering stolen funds is not a certainty, these specialists understand how to give victims the strongest chance.
If you or someone you know has been impacted by an online scam, take action as soon as possible. Reach out for expert support by contacting Cyber Investigation Inc.
