Cryptocurrency Fraud: How One Company Helps Track and Recover Digital Assets
Scam Tracker: Watch Out for Spring Scams
Spring weather can present the perfect climate for scams.
Published June 25, 2024 2:20pm CDT
7 On Your Side: Cryptocurrency Fraud
Investment scams, including cryptocurrency-related scams, were the number one riskiest scam in 2023, according to the Better Business Bureau.
AUSTIN, Texas – Investment scams, especially those involving cryptocurrency, topped the list of the riskiest scams in 2023. The Better Business Bureau has confirmed this alarming trend. Earlier this month, the FTC warned consumers about online love interests pushing them to invest in cryptocurrency.
Big Numbers, Big Losses
"We're looking at around $53 billion that is dripping out of the U.S. economy every year, through only crypto scams," said Bezalel Eithan Raviv, co-founder and CEO of Lionsgate Network, a company dedicated to helping people recover funds lost to cryptocurrency scams. "The U.S. is the most targeted nation, and Texas is the most targeted state in the U.S., so we can say that Texas is the most targeted space in the world as far as crypto scams."
According to the FBI's Elder Fraud Report, over $1.1 billion in crypto was stolen from Americans aged 60 and over through scams in 2023.
Be Aware of Spring Scams
Spring weather can present the perfect climate for scams. Our 7 On Your Side reporter, Carissa Lehmkuhl, highlights a few scams that could take place during spring. But Raviv points out that more young professionals are also being targeted.
"A very well-coordinated looting campaign, a very intelligent, smart, illusive crypto scheme, is something you can't understand until you're in it," he said. "These people are extremely clever, and they work on emotions."
New Tactics: From WhatsApp to LinkedIn
While well-known scams often start with a WhatsApp or Facebook message, Raviv mentions a growing trend of using a fake LinkedIn profile.
"They will develop a protagonist, someone who is in the realm of crypto," said Raviv. "It has many followers and likes and comments, and they will draw you in through the suit and the tie."
How Lionsgate Network Tracks Stolen Money
At Lionsgate, they are both tracking the trends and tracking the stolen money.
List of the 'Riskiest' Scams in 2023: Report
The "riskiest" scams in 2023 were investment scams, including cryptocurrency investment scams, according to a new report from the Better Business Bureau.
The Recovery Process
"The best way for them to stash it is crypto…and now, to recover it is basically to know where it is to understand the intricacies of exchanges, tokens, blockchains, blenders, and mixers," explained Raviv. "The one thing we provide in crypto scams is the tool, not the solution. The tool is essentially the missing analysis, which is the evidence to law enforcement. When we have a streamlined recovery process with law enforcement, the money can be frozen within less than a week and retrieved by court order, sometimes in another week. I'm not saying it's the case for everyone…There are a lot of parameters that have to come about in order for us to be able to do it."
Prevention is Key
However, to prevent reaching that stage, remember if it's too good to be true, it probably is. These scams can be highly sophisticated.
"As a scammer, you can create a campaign specifically, let's say, for people who have been divorced in the past three months. You can target specific people based on their vulnerabilities," said Raviv. "And there you go. You can create a story that will align with that specific group."
