A well-known crypto recovery scam recently resurfaced in a slightly modified way. Like many other scams, this one also tries to exploit the credibility and reputation of legitimate companies, including Cryptosec and Crypto Investigators. This scheme came to our attention through two channels: first, from astute individuals who contacted Cryptosec to verify claims of association made by these scammers; and more alarmingly, from victims who reached out after having already lost their crypto. Sometimes even blaming us for the losses. In this post, we will try to shed light on this scam, not only to educate our readers about its mechanics but also to emphasize the importance of verifying the legitimacy of any individual or entity claiming an association with any reputable crypto investigation companies. The Anatomy of the Scam The scam begins with scammers gathering email addresses and other contact information of cryptocurrency users from a variety of sources. These lists might originate from leaked user databases of crypto exchanges or crypto-related news websites. However, the scammers don’t stop there. They also actively seek out contact information of individuals who have previously fallen victim to crypto scams and have publicly shared their experiences. Additionally, they target users of bankrupt...Read More

In the U.S. alone, SIM-swapping attacks resulted in $72 million worth of losses last year, four-million dollars more than 2021, according to the Federal Bureau of Investigation. In a 2022 public service announcement, the FBI defined SIM swapping as a “malicious technique where criminal actors target mobile carriers to gain access to victims’ bank accounts, virtual currency accounts, and other sensitive information.” The PSA noted that threat actors “primarily conduct SIM swap schemes using social engineering, insider threat, or phishing techniques.” Threat actors execute their SIM swap attacks via social-engineering ruses, where they impersonate authorized mobile-carrier account holders and dupe customer service representatives into “switching the victim’s mobile number to a SIM card in the criminal’s possession,” according to the PSA. Even more troubling are insider-threat scenarios. In these cases, mobile carrier employees function as co-conspirators, facilitating thieves’ access to the customer accounts they are targeting in exchange for the cut of the action. These malicious insiders are often recruited on Dark Web cybercriminal forums and on Telegram. Threat actor Pwnstar recruits mobile carrier insiders on the Dark Web, source: RAMP Threat actor @Facer sells access to an AT&T insider who can lookup targets, source: Telegram Meanwhile, threat actors also...Read More

Verified crypto-exchange accounts have become a hot commodity on the dark web, with login credentials available for as little as $20, according to May data from threat intelligence firm Privacy Affairs. But the price for verified crypto accounts has been steadily rising, with some ‘logs,’ a darknet slang term for stolen or nominee credentials, fetching as much as $2,650 per account, Privacy Affairs research shows. While the U.S.-based Bittrex crypto exchange hosts the cheapest logs, Germany’s N26 mobile banking platform claims the most expensive ones. This price increase has occurred despite a generally bearish market environment for crypto assets. Fueled by Western financial sanctions issued in retaliation for Russia’s invasion of Ukraine, listings for verified crypto accounts have also experienced a dramatic increase over the last year, according to Russian media reports. A January 2023 article published in Kommersant said that the volume of dark-web solicitations for verified crypto exchange accounts had already doubled over the beginning of 2022. Cybersecurity experts interviewed by Kommersant asserted that this growth is the byproduct of “restrictions imposed by crypto exchanges against Russians.” Igor Sergienko, a director for the development of special services at RTK-Solar, a Russian cybersecurity firm, noted that many crypto exchanges...Read More

Annualized data from blockchain forensics provider Chainalysis indicates that crypto-enabled crime has dropped precipitously through the first half of 2023, but cybercriminals are also continuously evolving new cash-out methods to cover their tracks. Chainalysis’s mid-year update found that crypto inflows to “known illicit entities” were down 65% compared to where they were last June. Meanwhile, crypto flows to high-risk entities, which generally entail “mixers” and non-compliant exchanges were down 42%. Crypto mixers are protocols that enable large groups of users to pool their funds together in a deposit wallet that is programmed to redistribute tumbled crypto assets back to designated receivers. Specifically, mixer protocols scramble large clusters of crypto deposit inputs and transfer outputs together, making it difficult for blockchain sleuths to determine what the initial sources of a mixer recipient’s funding streams are. Mixers can thus help threat actors obfuscate the illicit origins of their crypto, although blockchain forensics tools can still detect mixer service wallet addresses and any outputs that receive funds from them. Still, mixed crypto fund flows only indicate heightened risk, not smoking-gun evidence of criminality.   Recent examples of infamous and now-dismantled mixing services include Helix and Tornado Cash. But an endless array of new...Read More

(Please also read our Avoid Crypto Recovery Scams – Step-by-Step Guide.) To safeguard yourself from falling victim to crypto recovery scams, it’s crucial to be aware of the crypto recovery lies and deceptive tactics employed by scammers. In this guide, we will dissect several actual statements made by these scammers, debunking their falsehoods and shedding light on their fraudulent practices. By understanding these crypto recovery lies, you can better protect yourself from the clutches of fake “crypto recovery” services. Crypto Recovery Lies: “We are associated with Crypto Investigators / Cryptosec / Chainalysis / Ciphertrace / Other reputable crypto investigations firm” Explanation: Scammers often impersonate reputable firms, mimicking logos and using similar email domains. If approached randomly with crypto recovery offers, don’t trust blindly. Always verify by contacting the claimed firm directly through their official website’s email. Crypto Recovery Lies: “We have insider connections with cryptocurrency exchanges and can recover your funds.” Explanation: Legitimate cryptocurrency exchanges prioritize the privacy and security of their users. No reputable exchange would disclose sensitive information or collaborate with anyone without proper legal procedures. Scammers prey on victims’ desperation by falsely claiming exclusive access to insider information, which is simply a lie. Crypto Recovery Lies: “We...Read More

As experts in the field of crypto recovery, Crypto Investigators offer a crypto recovery pricing structure that takes into account the multifaceted nature of crypto investigations and legal processes required for recovery. Our fees are determined by several factors, including the complexity of the case, the amount of cryptocurrency lost, and the jurisdictions involved. It’s important to understand that regardless of the case specifics or the chosen fee model, the base fee for our crypto recovery services always starts at $20,000. We take pride in our ability to adapt to the unique needs of our clients and we are committed to providing flexibility in our crypto recovery pricing models. Our goal is to collaborate with you to determine a fee structure that best suits your specific situation and budget. Crypto Recovery Pricing Models Hourly rate One popular crypto recovery pricing option we offer is an hourly rate, capped at a pre-agreed total fee. Under this model, we charge for our investigative and legal services on an hourly basis at regular intervals, with the total fee independent of the outcome of the recovery process. This approach ensures complete transparency, as we provide regular updates throughout the process and present our timesheets...Read More

(Please also read our Avoid Crypto Recovery Scams – Step-by-Step Guide.) While we offer crypto tracing and investigation services for various reasons, from corporate M&A due diligence, internal fraud investigations, to finding hidden assets in a divorce, we are most often contacted to help recover stolen digital assets. So how does a legitimate crypto recovery service operate? Please be aware that our services cater exclusively to corporations, law firms, family offices, and law enforcement agencies. Regrettably, we are not equipped to assist individual victims of cryptocurrency scams. If you’re an individual who has suffered from such a scam, we advise you to seek legal counsel prior to contacting us. Introduction Recently, there has been a disturbing surge in fake crypto recovery services, often referred to as “crypto recovery scams.” These malicious operators prey on victims of cryptocurrency fraud, exploiting their desperation to recoup lost assets. They typically ask for up-front fees for a recovery service that, in reality, never materializes, effectively scamming victims twice over. With this escalating problem, there’s an urgent need for awareness and education. Recognizing this, Crypto Investigators has taken a proactive step to safeguard potential victims. We have launched a series of informative blog posts aimed...Read More