Double Scams in Crypto: How Scammers Target Victims Twice?
Imagine losing money in a scam and then falling for another scam while trying to recover it. Ouch!! Unfortunately, this is a real issue in the cryptocurrency world, known as a “double scam.”
Scammers use clever tricks to deceive victims not once but twice. They usually do this by pretending to help recover lost funds. Crypto Accountants will explain how double scams work, why they happen, and how to protect yourself from becoming a victim twice.
What is a Double Scam?
A double scam is when scammers target victims of an initial scam a second time. They promise to help them recover their lost money but actually trick them again.
After the initial loss, victims are often desperate to get their money back. It makes them vulnerable to further deception.
How Do Double Scams Work?
Double scams involve two steps. Let’s walk you through these:
The Initial Scam
The first scam is usually a classic type of crypto fraud. We can understand this through some examples of common initial scams:
Fake Investment Schemes
Scammers create a fake website or app. They promise huge returns on crypto investments. Victims deposit their money, but the "investment" is just a lie.
Phishing Attacks
Scammers send messages or emails pretending to be from legitimate crypto exchanges, tricking users into sharing login information. Once they have the credentials, they steal the crypto.
Read More: Tips to Avoid Phishing Scams
Rug Pulls in DeFi Projects
A team launches a new cryptocurrency or DeFi project, raises funds from investors, and then vanishes with the money.
Once the victim has fallen for one of these scams, the scammers set up the next phase: the double scam.
Read More: Rug Pull Scams in Crypto World
The Secondary Scam
After the initial loss, scammers reach out to the victim, offering a fake "recovery" service. They might contact the victim via email, phone, or social media.
Here’s how they approach:
Pretending to Be Recovery Experts
Scammers pose as professionals from “recovery firms,” law enforcement agencies, or even private investigators, claiming they can track and retrieve stolen funds.
Charging Recovery Fees
Scammers say they need a small “fee” or “deposit” to start the recovery process. They assure the victim that the fee is necessary and that they’ll get it back once the funds are recovered.
Asking for Personal Information
Some scammers ask for additional details, such as wallet addresses, transaction history, or even login credentials. They use this information for further theft.
Unfortunately, once the victim pays or shares personal information, the scammers disappear. However, they can still contact you again, and keep on contacting, until a third or fourth scam happens.
Why Are Double Scams So Common?
Double scams are widespread in the crypto field because of these three main factors:
Emotional Vulnerability
After being scammed, people often feel desperate, embarrassed, or anxious. Scammers use these emotions to convince them to trust the recovery scheme.
Lack of Knowledge
Crypto can be complex, and not everyone knows how fund recovery works. Scammers take advantage of this lack of knowledge. They trick victims with fake processes and unreal promises.
Appeal of Quick Recovery
Many victims want a fast way to get their money back, and scammers promise just that. By claiming they have special tools or insider connections, they lure people in with a false sense of hope.
Common Signs of a Double Scam
If you have been scammed before, here are red flags that might signal a double scam attempt:
Unsolicited Contact
Real recovery firms don’t reach out to you without a prior request. If someone contacts you offering recovery help without you asking, be cautious.
Upfront Fees or Deposits
Asking for upfront fees is a classic sign of a double scam. Reputable firms generally charge after recovery, not before.
Too-Good-To-Be-True Promises
Phrases like "guaranteed recovery" or "special access to lost funds" are unrealistic. Fund recovery is challenging, and no one can guarantee it, especially in crypto.
Requests for Sensitive Information
Asking for your private keys, wallet passwords, or detailed transaction history is suspicious. Recovery firms do not need this level of access to investigate.
How to Protect Yourself from Double Scams
Here are practical steps to safeguard yourself if you've fallen victim to an initial scam:
Verify the Legitimacy of Recovery Services
Check if the company is real by searching online reviews, forums, or community boards.
Use trusted sites like LinkedIn or Glassdoor to see if the recovery firm is well-known and has real employees.
Avoid Unsolicited Help
If someone contacts you offering recovery services out of nowhere, ignore it. Legitimate companies don’t cold-call people about sensitive topics like scam recovery.
Don’t Pay Upfront Fees
Recovery services should only charge a fee once they successfully recover your funds. Avoid companies that demand an initial payment.
Be Careful with Your Data
Never give away your private keys, passwords, or other sensitive details. Recovery companies don’t need full access to your crypto accounts to assist you.
Report Scams to Relevant Authorities
If you’re a victim, report it to a reliable authority, like your country’s financial regulatory body or the Federal Trade Commission (FTC) in the U.S. They can help track scams and prevent others from becoming victims.
What To Do If You Have Been Scammed Twice?
Crypto Accountants share some steps to take if you fell for a double scam:
Collect Evidence
Keep all messages, receipts, and any information you have about both scams.
Contact Legal Authorities
Inform relevant crypto organizations such as the Cyber Crime Reporting Portal and local authorities about the scam. They may not be able to recover your payments, but they can help hunt down and prevent similar scams.
Warn Others
Sharing your experience in online crypto forums or groups can help spread awareness and prevent others from falling for the same trick.
Final Thoughts!
Double scams in crypto are a harsh reality, preying on those who have already suffered losses. Scammers know how to play on emotions and take advantage of people’s hopes for recovery.
Remember, real recovery takes time, and anyone promising instant results is likely not genuine. For more information on crypto tax and advisory, you can contact the Crypto Accountants and we will take care of it all.