VBit against Scams: Things to Do When Scammed by a Bitcoin Mining Entity

May 3, 2021 - Expert Commentary, How-To Articles, VBit Against Crypto Scams

Bitcoin Mining Contract

In this educational piece, we are taking the front-seat to educate our readers the importance of doing due diligence and outwit scammers.

It is not about how you fall, it’s about how you get up.

Millions of people get scammed every year. One unfortunate aspect of the internet era is that scammers have an unprecedented ability to contact and defraud people. Cryptocurrency is a uniquely attractive asset for scammers because of its digital existence and immutability. 

VBit Technologies is against these scams and takes the task of informing the public about their prevalence seriously.

Even though a person can take the necessary precautions, many only realize that they are dealing with scammers after the fact. 

Getting scammed is an unfortunate reality of this society, and it is best to be prepared. Some scammers display a level of sophistication that could mislead even seasoned Bitcoin owners.

Therefore, it is fitting to look at remedies in case you get scammed. Failing to prepare is preparing to fail. The essence of having many such stories is to learn from the experience of those who have undergone such misfortune.

Scams Can Target Anyone

The story by Nick Yeomans and his wife Josie that appeared on ABC News in 2019 is a sober reminder of this fact. They are a normal couple who enjoyed a relatively comfortable middle-class life in Canberra, Australia. 

Nick stumbled on an advert by Coinexx.org about Bitcoin investments on Facebook. The group claimed that it could take funds from the public and invest in Bitcoin. He decided to take the risk and invest $1,400 with the group, without high expectations. To his pleasant surprise, the group claimed to have tripled the investment in six months.

Six months is reasonable enough time to think that a group is doing actual investment. Typical scams are a smash and grab operation and don’t take that long to make it obvious. Coinexx actually delivered him $3,700, and this was all the assurance Nick and Josie needed. 

With the newfound optimism, he quit his job and restructured his finances around the group’s investment.  They invested a few thousand dollars, with a zeal and commitment reminiscent of a personal enterprise.

Things seemed to be smooth sailing, but Nick failed to realize that he was caught up in an elaborate Ponzi scheme. 

Coinexx was building the trust of several investors by using the money from new investors to pay older ones. Moreover, the site had elaborate graphics that purportedly allowed every investor to track their money.

Scams Turn Sour After They Achieve Critical Mass

After a few months, the investment turned sour and the site changed tact. At this time, Nick had invested a staggering $43,000. 

The couple was suddenly blocked from accessing their money and the site began giving excuses.  It appears that the site was waiting for investor deposits to reach critical mass before revealing their true intent.  

Soon enough, it became apparent that this was a scam. The Yeomans were fleeced together with the friends they urged to join the scam. Having quit his job, it was a double tragedy for Nick as he had placed great dependence on this investment working out. 

This story is sad on many fronts. Nick could be anyone, and this case goes to show that even relatively smart people can fall for scams. He may have been too trusting in the end, but the scam was elaborate enough to seem like it was something legitimate.

Don’t Go Quietly If You Are Scammed

In any scam, you could always find a detail that the victim missed. However, it doesn’t change the fact that they are the victim who had their trust taken advantage of. It could happen to anyone, and VBit warns Bitcoin enthusiasts to always watch their back against scams.

Once you realize that you have been scammed, the world seems to come crashing down. Many people are simply too embarrassed to take further action. It is precisely what the scammers hope for. Don’t go away quietly.

Going away quietly is actually beneficial to the scammers because there is no accountability for their actions.

There are some actions you can take if you fall victim to a Bitcoin scam. It obviously depends on the kind of platform that scammed you. In certain instances, contacting law enforcement can provide recourse. However, in cases of foreign or shady scams, this may not amount to much. 

Things to Do When Scammed in Bitcoin Mining

Here are some Do It Yourself (DIY) tips to try and recover Bitcoin from a scam:

  1. First, exhaust all options with the scammers by contacting them repeatedly with warnings of stern legal action. Scams count on you going away quietly and you must not give them that action. There are legitimate crypto startups that can have some fraudulent tendencies with investors who let them be. 
  2. Report to the relevant financial authorities. In developed countries, regulatory agencies take fraud seriously and can get scam victims some justice. 
  3. Publicize the story. It can be quite embarrassing to admit that you got scammed, but the more attention you bring to your case, the better. On forums like Reddit, you can actually find pretty good insight on how to get your funds back depending on the kind of platform you are dealing with.
  4. Inform your crypto wallet provider that the entity you paid for is a scam.  This will alert the wallet provider who may take some actions to prevent the scammers from victimizing others.
  5. Liaise with a professional Bitcoin recovery expert. There are recovery experts who are able to track the Bitcoin transactions and also investigate and apply all necessary technical processes needed to recover funds lost to the Bitcoin investment scam. For the record, it is impossible to unilaterally reverse Bitcoin transactions. However, these bounty hunters can offer technical, operational, and legal solutions to try and recover the Bitcoin. There are plenty of people and sites who will claim to be recovery experts. Conduct due diligence including looking at their track record to pick the right one. 

For public benefit, you could also flag the address so that everyone sees it as a scam. This is helpful for an elaborate scam that doesn’t change its address too often.

The Big Picture: You Can Dust Yourself Up From Any Scam 

Realizing that you have been scammed is devastating. People often choose to cut their losses and move on to erase the embarrassment of their loss. However, just as it is possible to move on, it is also possible to take decisive actions against scammers. 

You have every right to feel sorry for yourself or embarrassed.  This is a natural human response to realizing your gullibility, or that you are not as smart as you imagined. Regardless, what you do after that realization can either be a silver lining or compound your loss.

Admittedly, some crypto scammers are impossible or impractical to trace. However, to the extent that you can make attempts to recover your funds or protect other members of the public from falling victim to Bitcoin-related scams, then, by all means, take the necessary actions.

VBit Mining is an ally in this fight against all kinds of Bitcoin mining scams. We have placed transparency at the fore in our operations and seek to not only bring Bitcoin mining to the public but also educate people about this technology.

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