Frequently asked questions about crypto fraud and scams
Date: | Week: 31 | Reading time: 7 minutes | Updated: Author: Simcha Schrijver
In short
Crypto fraud is a scam in which you are persuaded to transfer crypto, or in which your crypto is stolen. If you think it is happening to you, it is wise not to pay anything more and to keep everything. Whether it really is a scam often only becomes clear once someone looks at where the money went.
Paucitas is an independent expert firm in the Netherlands that investigates investment fraud and crypto fraud, in hundreds of cases a year. We map out where your money went.
Get in touch with Paucitas or ring +31 20 244 5774, also in the evening and at weekends. A free intake is without obligation.
In a nutshell
Being scammed, or suspecting it, is distressing. You do not have to work it out alone. Paucitas looks at it with you first, maps the money trail and then helps you take targeted steps with your bank, the police or the FCA.
Anyone who thinks they have been scammed with crypto usually has the same questions. Is this really a scam? Should I report it first or have something looked into first? Is it still worth it after weeks or months? And what does it cost? It is completely normal to feel unsure about all of this.
Below are the answers from Paucitas' day-to-day practice, deliberately kept short.
What exactly is crypto fraud?
Crypto fraud is a scam in which you transfer crypto on the basis of a false story, or in which your crypto is stolen. Well-known forms are a fake crypto platform, a boiler room that puts you under pressure by phone, pig butchering and the romance scam, in which someone first builds a bond with you. Fake support staff asking for your recovery phrase are also common.
With investment fraud you put money into an investment that does not exist or is not what it seems. If that fake investment is in crypto, it is both. More under crypto fraud in our glossary.
What should you do first if you think you have been scammed?
It is best not to pay anything more, even if you are promised that one last payment will release your money. Tell your bank or payment provider about any recent transfer. Keep everything: transaction details, addresses, bank statements, screenshots and messages. Delete nothing, even if it is painful to look at.
Then it is time to let someone look at it with you. Get in touch with Paucitas or ring +31 20 244 5774. We will tell you straight away what makes sense in your situation.
How do you know whether it really is a scam?
That is often not clear straight away. There are signs that can point to a scam: high promised returns, pressure to decide quickly, a withdrawal that only works after yet another payment, or contact that started on social media. How such an approach looks is described in crypto scams via social media and recognising a fake crypto platform. The FCA Warning List can also help.
Sometimes it turns out to be a genuine platform that is slow or asking for verification. Sometimes it is a scam. You get clarity once Paucitas looks at the route of your money: where did it go, and what does that say about the platform?
What can Paucitas do in a crypto scam?
Paucitas does all tracing itself, without tracing tools. We follow your money across the blockchain and work everything out: the transactions, the route of the money, which addresses and platforms belong together, the documents and the timeline. We also go through all conversations, documents, emails and other communication. That gives you a complete picture of what happened and where all the money went. You receive a report that anyone can follow and understand step by step.
You can add that report to your fraud report, use it in a conversation with your bank or give it to your solicitor. Sometimes it turns out that money is still in a recognisable place. With larger, organised schemes an investigation often achieves more, as described in investment fraud as a business.
An example from practice
Over a few months, a man had put more and more into a trading platform he found through a social media advert. When he wanted to withdraw, he first had to pay "tax". He wondered whether he was overreacting.
Paucitas followed his deposits and found that the money never reached a trading account, but went through a series of addresses to an exchange. With that report he reported the fraud and flagged the platform to the regulator.
Paucitas takes privacy very seriously and never shares clients' personal details. This is a composite example: names, amounts and details have been changed. The situation is one we see in practice.
What can you do with the Paucitas report?
The report shows whether money is still available, or where it went, and what the next steps are. In a scam, one of those steps is reporting it to Report Fraud, or to Police Scotland if you live in Scotland, and with an investment offer, flagging the firm to the FCA. The Paucitas report is then a strong attachment, because it sets everything out fully and clearly. A police report then rests on recorded facts rather than on a reconstruction from memory. More about where to go is on scammed with crypto: where to go.
How do you recognise follow-up fraud?
Victims are strikingly often approached again, by parties promising to get your money back in exchange for an upfront fee. That is a recovery scam, and the FCA warns about recovery room scams. Paucitas never asks for your recovery phrase and makes no promises about getting money back. In doubt about an offer? Ring us first.
What does an investigation cost and how long does it take?
- Costs: every investigation is tailored. You receive a quote in advance that we go through together, with no surprises.
- Turnaround: from the same day to around two weeks, depending on the case.
- Intake: free and without obligation. If an investigation is unlikely to achieve much in your situation, we tell you straight away.
Get in touch or ring +31 20 244 5774. Through the form you will hear from us within 1 to 3 hours. More about our approach under crypto fraud investigation.
Sources: Report Fraud; Police Scotland, scams and frauds; FCA Warning List; FCA, recovery room scams.
Do you have questions about this blog?
Feel free to get in touch with Paucitas. Paucitas can be reached by phone 24/7, including evenings and weekends. Through the contact form we usually reply within 1 to 3 hours, and we answer e-mail within 24 hours.
Contact form
Usually a reply within 1 to 3 hours
"*" indicates required fields
We only use your details to contact you about your request. You can read more about this in our privacy statement.
Frequently asked questions about crypto fraud and scams
Can you get crypto back after a scam?
Paucitas: that depends on your situation. If you still have access to your own wallet or account holding funds, there may still be options. If everything has been sent to the fraudsters, the picture is different. That cannot be judged from a distance. Paucitas first looks at your situation and tells you honestly what is and is not possible. Be careful with anyone who promises in advance that your money will come back. In doubt? Contact Paucitas and you will know where you stand.
Is an investigation still worthwhile after weeks or months?
Paucitas finds that it often is. The blockchain forgets nothing, so the route can still be followed. The sooner, the greater the chance that money is still sitting somewhere.
What can I do with the Paucitas report?
Paucitas shows in the report whether money is still available or where it went, and which next steps make sense. If you report it to the police, the report is a strong attachment that sets everything out fully and clearly.
I have been scammed with crypto. Where can I go in the UK?
Paucitas can help, as an independent expert firm in the Netherlands that also works for clients in the UK and maps the money trail and the full course of events for you. With that report you can then take targeted next steps, for example with Report Fraud, Police Scotland or, with an investment offer, the FCA.
I feel ashamed. Should I?
Paucitas: no, there is no reason to. Scammers are professional and know exactly how to win trust. It happens to experienced investors too. We listen without judgement.
From Amsterdam, for the whole of the UK
Everything can be done fully online. Prefer to meet in person? You are very welcome at our office in Amsterdam, by appointment.
Paucitas is an independent expert firm based in the Netherlands that, for clients across the UK, investigates investment fraud and crypto fraud, establishes the origin and legitimacy of crypto assets and prepares expert reports for legal proceedings and compliance.
Your own situation
If you are reading this, you probably have a question about your own situation. That is exactly what Paucitas does.
The first step is contact by phone. You can book that call by phone or through the contact form, so you do not have to wait. In the call we look together at what can factually be established in your case and what Paucitas can examine for you.