What Can I Do after Losing My Bitcoins to a Scam?

Bitcoin Scam

You wanted to get your hands on some crypto coins, but things ended up in the worst possible manner for you. You invest your money and in return, you got scammed. What can you do about this situation? Is there a way for you to get your money back? Well, the answer is not a simple yes or no. Whether you will get your money back or not depends on how you have lost it. Do keep in mind though that in most cases, the money never comes back to the investor or trader. People have lost millions of dollars in bitcoin scams and never got anything back.

So, will you get your money back after you have been scammed? Here’s Neuercapitalscam explains a detailed answer to the question.


Getting Your Bitcoins Back after a Scam

As mentioned earlier, getting your money back depends on how you have lost the money. We will discuss different scenarios and the possibility of getting your money back in those scenarios. You can find out which particular scenario defines your situation the best and take action accordingly.


·  Losing Bitcoins on an Exchange

A lot of people have lost their bitcoins on exchanges. Cryptocurrency exchanges are places where you can give fiat money to get a cryptocurrency. You can also exchange one cryptocurrency for another on these exchanges. In the past, a lot of exchanges have gotten hacked. If an exchange says that its system has been hacked and your money is gone, consider it gone forever. There is no way you are going to get your money back in this scenario because the exchange has already lifted its hands in the air.

The other scenario is when the exchange turns out to be a scam. Such exchanges disappear after they have collected millions dollars worth of cryptocurrency already. If the exchange disappears, you are not getting your money back. If the developers of the exchange get caught, there is a thin chance of getting the money back. However, if you take the case of a Korean scam exchange as an example, no one ever got their money back even after its developers were caught.


·  Losing Bitcoins with a Broker

Usually, you will not be trading bitcoins with an online broker. What you are usually trading is a CFD, which is a contract with a face value that could be the fraction of the actual bitcoin value. But what if you fund your account to trade bitcoins and then lose the money. Again, there are two situations that can take place. Either the broker is regulated or not regulated. If the broker is regulated, you have a strong chance of getting your money back. If your broker is not regulated, you can bid farewell to your bitcoins. To prevent this from happening, you should choose only regulated brokers.


·  Losing Bitcoin from the Wallet

Yes, that’s very much possible. When you buy bitcoins, you have to find a place to store them. The place to store your bitcoins is the cryptocurrency wallet. You can use a variety of cryptocurrency wallets. There are different types, and each type has a different level of security. Some wallets are always connected to the internet whereas some connect to the internet only when you have to use the cryptocurrency for some transaction. There are purely offline wallets as well, which never go online. If you have a hot wallet i.e. one that is connected to the internet at all times, you can get hacked.

If the money from your wallet has disappeared, you cannot get it back since you will never know where the money disappeared. For this reason, it is highly recommended that you use only offline wallets.


·  Losing Bitcoins Due to a Pure Scam

Sometimes, you become the prey to a scam. Yes, you sign up with a service that is only meant to be a scam. For example, you might receive an email that tells you that you have some bitcoins waiting for you. The email will ask you to click on a particular link and give you certain instructions. According to the email, you can make a claim on your bitcoins when you follow the steps given in the email. However, that’s not what’s going to happen when you click on a link from an unknown source.

Things will get quite difficult for you to protect once you have clicked the link and followed the instructions. It is usually a phishing scam that sends you to a website where all your personal details are recorded. Another form of a scam is what you are made to go on a website with a particular malware on it. This malware then gets installed on your device to wreak havoc on your privacy and the money you have in your digital wallets. In either case, you do not stand the chance of getting your bitcoins back.


Final Thoughts

The best thing you can do to avoid scams is to be proactive with your approach. Do not rely on recovering from damage. Instead, you should be preventing a scam from happening in the first place. Always verify a new cryptocurrency in the market before you invest in it. Never click on links that you get in emails from unknown sources. Use offline wallets because they are safer than hot wallets. Never leave your money on the exchange after you have converted it. Always sign up with regulated online brokers for trading bitcoin.