Every week, the crypto industry witnesses a barrage of new, high-profile scams targeting unsuspecting victims of every age. Crypto crime has mushroomed into a more than $24 billion industry, fleecing everyday Americans out of their cash and private keys, and making the job of law enforcement agents even harder.
To better understand what users can do to protect their assets, TheStreet Crypto spoke to Bezalel Eithan Raviv, co-founder and CEO of Lionsgate Network, a firm that focuses on money recovery services in the crypto space.
TheStreet Crypto: What’s the first thing a user should do if they’ve been scammed by crypto criminals?
Lionsgate Network: If your wallet is hacked or you’ve been scammed, act quickly. Move any remaining funds to a safe wallet and stop using the compromised one. If you don’t have a safe option, create a new wallet.
Tell a money recovery service like ours about the incident, so we can track your money. Time matters because we can freeze the hacker’s wallet with help from law enforcement if we catch it early.
What can users do to prevent crypto criminals from targeting them?
- Educate yourself.
- Trust your instincts.
- Avoid trading based on online advertisements.
- Insist on video verification for transactions.
- Be cautious of high-gain promises.
- Conduct thorough due diligence.
- Keep your private key and seed phrase secure.
- Store your crypto in cold wallets.
- Enable two-factor authentication.
If a user is confused how the hack happened, what can they do?
What happened isn’t important as much as where the client’s crypto is.
If you’re unsure how your crypto was stolen, report the case to a money recovery company for immediate help. Waiting for law enforcement, like IC3, can take 6-8 weeks — a costly delay in the fast crypto space. We provide analysis and the evidence law enforcement needs to freeze the wallet, boosting recovery chances. Instant reports via live video are crucial for presenting evidence to law enforcement.
How can a user rescue funds from a hacked wallet? What resources are available?
Like in the 1996 movie Jerry Maguire, the key question is: Where’s the money? Our analysis shows the exact location. Knowing the location guides us on which wallet to freeze, leading to recovery. We also use our “crypto cowbell,” a unique tool to trace client money through mixers and different blockchain networks that scammers use to hide stolen funds.
