Scams and Fraud

Cryptocurrency transactions are becoming more and more common by the day, even though few are aware of the dangers associated with them. By the time they do, it is usually too late.  The victims they target have poor knowledge of investing and are easily swayed into parting with their money, only to later realize that it was all a scam. As the scammers demand to be paid using cryptocurrency, usually Bitcoin, we regularly get requests from victims who need help getting their stolen crypto-funds back.  Can Cryptocurrency Transactions be Reversed? Simply put, no. Without going into technical details, the nature of blockchain technology is such that transactions once processed cannot be reversed. There is no ‘chargeback’ facility similar to credit cards as there is no central authority who can control the flow of funds. There is no bank acting as a middleman between you and the merchant. In essence, blockchain transactions are more akin to a cash transaction than a bank transfer. Some crypto wallets do have a built-in ‘Refund’ option, but the refund has to be initiated by the merchant himself and cannot be forced by a third-party. To understand this better, let’s take the example of credit cards. If you pay a merchant using a credit card, the bank makes a digital payment to the merchant on your behalf and this amount is later covered by you when you pay the credit card bill. If you apply for a chargeback, the bank simply reverses the payment it made to the merchant and the same is deducted from your credit card bill. This system provides a kind of safety net. With cryptocurrencies, as there is no middleman, there is no safety net either. You cannot complain to ‘customer service’ if you get scammed, as there is no singular entity in charge of the blockchain. Cryptocurrency Recovery Agencies Despite it being quite clear that cryptocurrency transactions are irreversible, there are plenty of companies confidently boasting that they can help victims of scams recover their cryptocurrency. All of them follow the same patterns. Firstly, they heavily promote their services through mediums such as search engines: Spam advertisements on sites such as YouTube and Instagram. Even on Newsjirga, we remove about 200 to 300 fake reviews every month from people who say their funds have been recovered by a recovery firm. These reviews should never be trusted. They also send out paid press releases that could be confused as being real news articles. The websites always contain testimonials from elated clients who thought they would never get their money back, but successfully recovered their stolen funds thanks to the recovery agency. Conclusion Currently, there are innovative ways being devised to help scam victims reclaim their money. Unfortunately, the technology that could enable this is still being worked on and is not yet publicly available. While there is hope that crypto can be recovered in the future, it will probably never be free or as easy as recovering fiat currency from scammers. Bottom line: Never pay strangers using cryptocurrency as there is no hope of recovery if you get scammed.

If you were the victim of a fraud or scams and you paid with cryptocurrency, your crypto exchange and/or law enforcement might be able to help you get your money back.​ In any case, gather all the evidence you possess in relation to the scam including chats, emails, messages and any kind of interaction you had with the scammer. Make sure to send this information to your crypto exchange, the police (and/or CYBERA) as soon as possible explaining the whole situation. If you act quickly enough, it might be possible to stop the transaction from going ahead or block and recover already transferred funds.​

If you were the victim of a fraud and you paid via direct wire or bank transfer, your bank and/or law enforcement might be able to help you get your money back.​ In any case, gather all the evidence you possess in relation to the scam including chats, emails, messages, and any kind of interaction you had with the scammer. Make sure to send this information to your bank, the police (and/or CYBERA) as soon as possible explaining the whole situation. If you act quickly enough, it might be possible to stop the transaction from going ahead or block and recover already transferred funds.​ Alternatively, you can use the following template for sending an email to your bank: [Your address]​ ​Dear Sir/Madam​, ​Reference: [Insert account number and any previous complaint reference numbers if applicable.]​ ​On [enter date], I contacted you after being targeted by fraudsters who stole [enter amount] from my account.​ ​[Explain here what happened – include if you can:​ ​Date​Time​Chronological order of what happened, eg. you got a text from your bank warning you about an unknown transaction​The exact wording of any texts sent to you​The bank account number your money was sent to​When you contacted your bank and what you were told]​ I did not authorize these transactions as I did not know I was talking to a fraudster. The money was taken without my knowledge or consent.​ ​I, therefore, expect you to deal with my complaint according to the rules on unauthorized transactions, which state that unless you can prove I acted with gross negligence, you should reimburse me for this unauthorized transfer.​ ​I urge you to reimburse me for my losses of [amount you lost here] and provide your confirmation regarding the same. ​If you do not uphold my complaint, I request you send me your final response so that I can take further steps as appropriate. ​Yours sincerely,​ ​[Your name]​ However, even after asking your bank for a refund, we cannot guarantee that you will get a refund as the right to charge back does not apply to wire transfers.​

There are numerous marketplaces which connect sellers and buyers of a product or service. A distinction is made between them as they do not all guarantee the same level of customer protection. The most famous ones such as Aliexpress, Amazon, eBay, Etsy, Rakuten and others generally offer customers a certain level of security. If a sale is to go wrong or the seller does not deliver the goods or services, the customer is eligible for a refund of his/her money. However, the right to a chargeback is also subject to the means of payment that was used during the transaction. For instance, if you paid the seller using bank transfer instead of the methods of payment provided by the marketplace, it is unlikely that you will be entitled to a refund. The distinction is also made depending on whether you bought from an individual or a company. If you purchased from a trader or retailer, your interests are protected in the same way as if you bought from any other online store. Tips for Shopping on an Online Marketplace Consumer Guarantees Per Marketplace You can find here your guarantees per marketplace, to better understand what your rights are when making transactions with them. Aliexpress Aliexpress is the retail branch of Alibaba where it is possible to buy products in small quantities. It is always important to check the guarantees offered by a seller, especially when the seller is foreign. Many sellers offer their own set of guarantees for some items, always check out if the product you’re interested in has them or not. For instance, expensive items possessing the  ‘Guaranteed Genuine’ tag will be fully refunded if the item proves to be fake. If the ‘Guaranteed Genuine’ tag is not present, you may not get your money back. Aliexpress offers a dispute service in case you are not satisfied by the transaction; however, always wait till you receive the items before filing a complaint. Indeed, since you get only one shot at the dispute, some sellers delay the delivery on purpose. In that case, if you complain before receiving the goods, the complaint will be about the delivery time, and you will not get another chance at it if the products are of low quality. Check out Aliexpress Consumer Guarantees Amazon When placing an order at a third-party seller on Amazon, the Amazon A-to-z Guarantee protects you and covers both the timely delivery and condition of your products. If you are not satisfied with either of them, you can report the problem to Amazon, and they will assess whether you are entitled to a refund. You may be eligible to request a refund under the A-to-z Guarantee if any of the following apply: Note: Amazon may require you first to contact the seller and either wait for a response or request a refund after 48 hours. To check your eligibility, go to Request an A-to-z Guarantee Refund. You have up to 90 days after the maximum estimated delivery date to request a refund under the A-to-z Guarantee. The A-to-z Guarantee does not cover digital items, payments for services, stored value instruments. Additionally, if you file a chargeback with your payment provider or bank, you will not be eligible for a refund under the A-to-z Guarantee. Read Amazon’s Consumer Guarantees eBay To ensure all of their members have a great experience on eBay, most purchases are covered under eBay Money Back Guarantee. eBay Money Back Guarantee means you’re protected if the item you ordered didn’t arrive, is faulty or damaged, or doesn’t match the listing. This guarantee applies when: Read eBay’s Consumer Guarantees Etsy Etsy also offers a dispute resolution service much like its competitors. They advise first to try and sort out the problem with the seller, and if that is not possible, customers can avail their dispute resolution service. To report a problem with an order: If you checked out as a guest, reply to the receipt in your email to contact the seller. Read Etsy’s Consumer Guarantees Facebook Marketplace Since Facebook does not verify the products it allows to be sold on its platform, the best advice is to check the product personally before making a transaction. We also advise not to pay for anything in advance as this can easily lead to an unfinished deal. If you have some doubts about the seller or the product, or if the offer seems too good to be true,  consider finding another seller whom you can trust. If you buy something faulty, even though you are entitled to a refund since the seller will be in breach of contract, Facebook cannot guarantee a refund (they also do not offer a payment interface). In that case, what is advised is to take screenshots of the conversation, report the seller to Facebook, and report the crime to the police as well. Read Facebook Marketplace’s Consumer Guarantees Rakuten Rakuten offers the Worry-Free Guarantee, which entails that they will ensure your satisfaction when shopping in their marketplace. Like any other marketplace, they advise to first try and solve the issue with the seller. However, if that is not possible or if the seller is unresponsive within two business days, you can contact Rakuten, and they will make contact with the merchant to solve the issue as fast as possible. Rakuten guarantees the resolution of the issue even if the seller is unwilling. This can include partial or full refund, depending on the case and the circumstances. The Worry-Free Guarantee does not cover: Read Rakuten Consumer Guarantees European Union Online Dispute Resolution In case you are not happy with the resolution service or performance of the marketplace itself, and you are from the European Union, you can use the European Union Online Dispute Resolution portal. Depending on the issue and the circumstances, they will also advise you on what to do and how to proceed with your issue.

If you purchased a product but changed your mind about it, you can request a refund of a completed payment by contacting the seller. Ask the seller to go to the Transaction Details page for your transaction and click Issue a refund. You can request a refund up to 180 days after you pay for your item. Here’s how to find the seller’s contact information to request a refund: What if the Seller Refuses a Refund? You may be able to open a dispute in the Resolution Center if you didn’t receive your item, received something that doesn’t match the seller’s description or if the payment was not authorized, in the case the seller does not agree to a refund.  Common Trick Used by Shopping Scammers We have had numerous reports about Chinese shopping scams following the same modus operandi. When the order fails to ship for a long time and you inquire by email (since it is the only method given), they will reply asking you to patiently wait. You might either receive nothing or some low-quality product. Then if you ask for a refund, they will offer a partial one. For a full refund, they will demand that you ship the product to China at your own cost, which will cost more than the product itself. Even if you do ship the item back, it is unlikely that you will receive a full refund. Instead, to you can get a full refund if you complain to PayPal about the product being not as described and the Chinese origin not being disclosed.  Read ‘How do I request a refund?’ on PayPal

If you have paid with a credit card, you may be entitled for a chargeback. A chargeback from your credit card company gives you a refund when you’ve been wronged in a transaction and the seller won’t return your money.​ ​You Can Get Your Money Back If: First, you must try to resolve the issue with the company you paid to. Collect all emails, messages, letters, the order and return confirmations. Take screenshots of the website showing your order and/or transaction history. You often must provide all correspondence to the credit card company as proof. At the bottom of this page, you can find a template for sending an email to your bank. ​The next step is contacting your credit card company. If it is clearly a scam, state so. The time you have to file a chargeback request (usually 30 to 120 days) and the process differs per credit card network:​ If you have a credit card via your bank, it may be wise to start by contacting your bank first. The credit card network will approach the company and request them to respond to your claim. Often, they are more willing to support your chargeback than the credit card network.​ What if Your Credit Card Company and Bank Refuse the Request?​ Do not give up. First, check the reason behind your chargeback request being refused. You are entitled to read the response of the company that scammed you. Maybe you can counter their arguments with additional proof. ​ ​Example Letter​ [Date]​ ​ [Your Name]​ [Your Address]​ [Your City, State, Zip Code]​ [Your Account Number]​ ​ [Name of Creditor]​ [Billing Inquiries]​ [Address]​ [City, State, Zip Code]​ ​ Dear Sir or Madam, ​I am writing to dispute a billing error in the amount of [ $______] on my account. The amount is inaccurate because [describe the problem]. I am requesting that the error be corrected, that any finance and other charges related to the disputed amount be credited as well, and that I receive an accurate statement.​ ​Enclosed are copies of [use this sentence to describe any information you are enclosing, like sales slips or payment records] supporting my position. Please investigate this matter and correct the billing error as soon as possible.​ ​Sincerely,​ ​[Your name]​ ​Enclosures: [List the enclosures]​

The prevalence of user reviews is an internet phenomenon. Before the modern web, testimonials were the only way to hear what “regular people” thought of a product. Now, anyone can weigh in on software, products, and services. However, not all reviews are genuine. Fake online reviews are more common than you’d think, and can mislead you into buying a product you otherwise wouldn’t. Let’s look at some of the common red flags of fake reviews so you can avoid being deceived. 1. Extreme Negative or Positive Emotion A review that’s 100% positive or negative is a sign that the reviewer’s intentions weren’t genuine. An overwhelmingly positive review signals that the person has blind loyalty to the brand, or that they’ve been paid or otherwise benefitted from the review. In a normal review, people will usually list some negatives, even if their overall view is positive. Saying that it’s “amazing” with zero reasons why is not helpful. Similarly, a completely negative review doesn’t offer you much help either. People flaming a product could be trying to damage the company’s reputation because they had a bad experience with it. Someone who genuinely wants to provide a one-star review will focus on the specific issues they had with it instead of writing overarching angry comments. 2. Personal Stories and Details Reviews that have clichés like “This product changed my life!” are often fake. Most people don’t feel that strongly about random products online, so fakers might feel the need to ham up their review when it’s not genuine. A similar issue comes from reviews in story form, such as “I was feeling down after my dog died, then I happened to find this product and can’t believe how amazing it is!” Telling personal stories tugs at your emotions, making you more likely to buy something than you otherwise would be. Good reviews don’t focus on the reviewer; they are about the product. Another common review trend, especially for mobile apps, is “I never write reviews, but…” This isn’t necessarily a sign of a fake review, but treat such examples with a bit of suspicion. It could be a sign that something other than genuine interest prompted the author to write the review. 3. Excellent or Poor Grammar A genuine review will read like it’s written by an average person. It might have a few minor grammatical errors, but it should be clear without sounding overly formal. A possible sign of fake reviews is when the quality of writing is on either extreme. A perfectly polished review is a sign that someone was paid to make the product sound as great as possible. Look out for bland statements that sound like they came from the product description or a press release, such as “This software perfectly integrates with the app ecosystem that my workflow demands.” Similarly, a review that’s barely legible can be a sign that it’s not legitimate. A lot of companies pay people, usually in developing countries where English is not the primary language, to write positive reviews for their products. These outsourced reviews serve to inflate the product’s rating. 4. Excessive Humor Lots of people treat reviews as a place to test their comedic skills. Sometimes, humorous reviews can be welcome on silly product listings, like the notorious sugar-free Haribo gummy bears. But many times, humor and sarcasm can make it difficult to tell whether a review is genuinely being funny or just writing a bogus review to get a laugh. This is exacerbated by some online stores like Steam, which have a “Funny” button under the Was this review helpful? section. A common Steam review trope is simply writing “It’s OK,” contrasting with the high amount of playtime the reviewer has. This doesn’t tell you anything about whether you should buy the game, so it’s useless as a review. As a general rule, ignore reviews that don’t actually discuss the product. More helpful reviews won’t wander off into tangents like these. 5. A Focus on Irrelevant Details Some of the points we’ve discussed help you spot reviews that are completely faked, but those aren’t the only useless types of reviews you need to weed out. There are also reviews that aren’t relevant because they don’t address the key question: whether the item is worth buying. A common form of this is reviews that complain about slow shipping times, damaged boxes, or other tangential details. While it’s frustrating to have an item damaged during shipping, that doesn’t affect the quality of the actual product. Ignore reviews that say “The product is worth five stars, but I gave one star due to the packaging being bent” or similar. 6. The Reviewer Didn’t Actually Purchase the Product Many sites, including Amazon, show you if the reviewer actually bought the item they’re reviewing. If the person didn’t purchase the product, you shouldn’t trust what they have to say about it. Like point #1 above, they could be simply slandering the product because they dislike the company. If you’re able, always filter by people who actually own the item. But be aware that just because this tag appears doesn’t mean the review is trustworthy (see below). The only possible exception is people who bought an item somewhere else, then reviewed it on Amazon to let people know of problems with it. But this is rare, as most people wouldn’t take the time to do so. If someone seems suspicious, click their profile to see the other reviews they’ve left. Look for patterns that don’t make sense, such as reviewing expensive items of the same type (like several TVs) in a short timespan. 7. Mention of a Free Product It’s a common practice for companies to offer a free product in exchange for a review. And while they don’t always state that you need to leave a positive review, people who participate in schemes like this probably fear that they won’t get another invite for a free product if they leave a negative review. Many sites don’t

Visit the FTC’s Complaint Assistant. You can report fraud to the FTC by visiting their Complaint Assistant website at www.ftccomplaintassistant.gov. If you are a United States citizen, you should report to the FTC if you have been the victim of identity theft, even if you reported the international fraud to EConsumer or to the IC3. Select a category of fraud. Look at the categories listed on the left-hand side of the page. Pick the one that most accurately describes the type of fraud you are reporting. The categories are:[9] Choose a subcategory. After you click a category, you will be presented with several options for sub-categories. Pick the subcategory that most closely matches your complaint. For example, if you click on “Scams and Rip-offs,” the following subcategories appear:[10] Fill out the complaint. To help the FTC investigate the fraud, provide as much information as possible. You will be prompted to provide the following information:[11] Report identity theft at the same time. If you were also the victim of identity theft, then you should report your identity theft to the FTC as well, also using the complaint assistant. Click on “Identity Theft” from the categories listed on the homepage. You will be directed to the www.identitytheft.gov website. Chat with support if you have questions. Someone at the FTC will be able to answer your questions if you click on the chat icon. Tech Support is available to chat Monday through Friday, 9:00 am to 8:00 pm Eastern Standard Time. Related Articles How and Where Report Online Scam or Fraud Report online scam or fraud on IC3

Visit the IC3 website. The Internet Crime Complaint Center (IC3) is a partnership of the Federal Bureau of Investigations and the National White Collar Crime Center. It collects information about suspected international fraud and then contacts the appropriate local, state, national, or international regulatory agency. If you are located in the United States, then you can report international fraud to IC3 at its website, www.ic3.gov. Complete a complaint. You will need to provide IC3 with the following information in order to make a complaint:[6] Download a copy of your complaint. Once you submit the requested information online, you will receive an email from IC3. This email will contain a complaint ID and password, as well as a link you can visit to download a copy of your complaint. Provide evidence to the appropriate agency. IC3 reviews complaints and refers complaints to appropriate agencies to investigate. IC3 does not investigate. Instead, you may be contacted by the agency which IC3 forwarded your information to. You can provide any helpful information about the internet fraud, including: Related Articles How and Where Report Online Scam or Fraud Report online scam or fraud on Federal Trade Commission