According to statistics published by blockchain analytics firm Chainalysis last year, illicit cryptocurrency-based activity was at an all-time high, with stolen funds through hacks and other phishing methods representing a significant proportion of the overall estimated US$20.6 billion in crypto-related crime globally.
As prolific as those global statistics are, and with stolen funds rising by 7% in 2022 compared with the previous year, the emerging trend of victims of crypto theft being targeted by false asset recovery agents who attempt to trick them into parting with further money to recoup what was stolen is perhaps one of the more alarming methods of deception CFAAR is seeing.
What to do if you are unsure
One crucial factor that applies in 100% of matters is that CFAAR will never ask you to provide any payment. CFAAR, as an entity, does not carry out asset recovery work itself, so it will never direct you to pay an invoice or provide payment information, nor will it directly and proactively contact you if you have had cryptocurrency or other digital assets stolen.
CFAAR is a network that provides a platform for members, such as lawyers, regulators, fraud and asset recovery practitioners and other related professionals to share best practice in the services they provide to protect the victims of cryptocurrency and digital asset fraud, as well as to serve as an industry voice to advise governments, regulators and lawmakers when they are implementing safeguards for consumers in this arena.
While CFAAR works quickly and effectively to shut down fake websites and email accounts claiming to offer asset recovery services in its name, there is always a risk that new scammers emerge. If you have been contacted and you are unsure if the service provider is legitimate, please contact CFAAR through its website www.cfaar.io or visit the Committee page and directly contact a committee member through their respective company's official website or main switchboard.
Important things to remember:
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A UK court has granted summary judgment to the victim of a fraudulent cryptocurrency scheme but stops short of making a final award.
