What institutions fail to grasp about crypto and investment fraud
Date: | Week 28 | Reading time: 7 minutes | Updated: Author: Simcha Schrijver
In short
Authorities and crypto fraud: police, banks and regulators want to help, but often lack the time and specialist capacity to work a crypto case through fully. That is not unwillingness. An independent report that anyone can follow does help a case move forward faster.
Paucitas is an independent expert firm in the Netherlands that investigates investment fraud and crypto fraud, in hundreds of cases a year. Victims, solicitors, banks and other bodies can all come to us.
Get in touch with Paucitas or ring +31 20 244 5774. A first conversation is free, for victims and for authorities alike.
In a nutshell
A crypto case takes a lot of time and knowledge, and that is not available everywhere. Paucitas does take that time and sets out the facts. That puts the victim, the bank and the police all in a stronger position.
Perhaps you reported it, told your bank and filed a complaint, and have heard little since. That is frustrating, especially when a lot of money is involved. Or you work at a bank, regulator or police force yourself, and see crypto cases growing while the time per case stays the same.
This article explains why crypto cases often stall with authorities, and how an independent investigation can help. It is very much an outstretched hand, not criticism. More about our approach in crypto fraud investigation.
Why do authorities sometimes get stuck on crypto fraud?
In crypto fraud, money often passes through dozens of addresses, switches currency and crosses borders within a short time. To really get to the bottom of such a case takes specialist knowledge and, above all, a lot of time. At many bodies that combination is scarce, while the number of cases keeps rising.
That is not a criticism. A detective has dozens of other cases on the desk. A bank is not an investigation firm and does not need to be. The result, though, is that victims sometimes wait a long time, while valuable traces grow older.
What can the police do about crypto fraud?
Reporting matters. In England, Wales and Northern Ireland you report via Report Fraud; in Scotland you contact Police Scotland. The police then have to prioritise, because they cannot take on every case at once. Europol also points out that investment fraud is often international and technically complex.
A report with a clear overview of the transactions, the route of the money and the platforms involved is far more useful to the police than a loose account. That is exactly where an independent report can make the difference.
What do banks do when fraud is suspected?
Banks must act quickly on signs of fraud or unusual transactions and, where needed, submit a suspicious activity report to the NCA. All banks follow the same rules, whether it is an app-based bank or a traditional high street bank. What differs is how they work: one bank handles much through its app or chat, another through a named contact.
What a bank cannot see is what happens on the blockchain outside its own systems. If your account is frozen or the bank asks where your money came from, factual evidence helps. Also read bank freezes your account over crypto.
What does an independent report add?
Paucitas works everything out: the transactions, the route of the money, the parties involved, the documents and the timeline. We do all tracing ourselves, without tracing tools, and check every step. We also go through all conversations, documents, emails and other communication, so that a complete picture emerges of where all the money went. The result is a chain reconstruction in a report that anyone can follow and understand step by step: the police, the bank, a solicitor and the victim too.
Such a report does not replace the police or the regulator. It is groundwork that helps them see more quickly how a case fits together. What they do with it is their decision.
An example from practice
A man of around 55 had lost a large part of his savings through an investment platform. He reported it and told his bank, but heard nothing for weeks. He no longer knew which step made sense.
Paucitas mapped the route of his money, from his bank account through an exchange to the platform's addresses. With the report he added to his police report and went back to his bank. He now knew exactly what had happened and where the money had gone.
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.
Stuck with an authority? Get in touch, or ring +31 20 244 5774. You can call at any time, 24/7.
Can authorities consult Paucitas themselves?
Yes, and we welcome it. A bank, regulator, local authority or police force that wants to understand a crypto case better can always get in touch. A first consultation is free. Paucitas provides facts and evidence, the judgement and the decision stay with the competent body.
For banks, conveyancers and compliance teams
Where there is doubt about the origin of a customer's crypto, Paucitas maps out the flow of funds factually, so you can proceed on evidenced data. More in banks, conveyancers and compliance and an expert report for the court.
What can you do now as a victim?
Keep all messages, transaction details and screenshots. Be careful with anyone who promises to get your money back: that is often a recovery scam, as the FCA also warns. Then let Paucitas take a look with you. The report shows whether money is still available, or where it went, and what the next steps are, such as reporting it to the police or flagging it to the FCA. The Paucitas report is then a strong attachment that sets everything out fully and clearly. An overview of possible steps is in scammed with crypto: where to turn.
- Costs: every investigation is tailored. You receive a bespoke quote beforehand that we go through together, with no surprises.
- Turnaround: from the same day to around two weeks.
- Availability: you can ring at any time, we answer the form within 1 to 3 hours, and email within 24 hours, usually the same day.
Want to know what is possible in your case? Get in touch for a no-obligation introduction, or ring +31 20 244 5774.
Sources: Report Fraud; Police Scotland, scams and frauds; National Crime Agency, suspicious activity reports; FCA, recovery room scams; Europol, investment 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.
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Frequently asked questions about authorities and crypto fraud
Why do I hear so little after reporting?
Paucitas explains: the police have many cases and must prioritise. That is not unwillingness. A report with a clear overview of the transactions is easier for them to use.
Can a bank use an independent report?
Paucitas: yes. A bank can use the Paucitas report as factual evidence, for instance with a frozen account or a question about origin. What the bank decides remains up to the bank.
Does Paucitas take over the work of the police?
Paucitas does not take it over, but provides groundwork that the police and other bodies can use. Investigation and decisions stay with the competent authority.
Can I get my money back after reporting it to the police?
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.
What does an investigation by Paucitas cost?
Paucitas tailors every investigation. You receive a bespoke quote beforehand that we go through together, with no surprises. The intake is free.
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.