Recover Scammed Cryptocurrency Understanding Your Chances
Considering that blockchain transactions operate via smart contracts, many people often wonder what the chances are to recover scammed cryptocurrency. Aside from getting swindled, it is important to understand if you can retrieve blockchain tokens after they leave your wallet.
In this article, we will discuss your chances of reclaiming crypto that has left your wallet and also outline ways to prevent such cases from happening.
Potential Causes of Lost Blockchain Tokens
Before explaining how to retrieve crypto, we first have to explain the ways people lose their funds when completing a transaction.
As mentioned earlier, blockchain technology and smart contracts facilitate DeFi transfers. Transactions are done via a peer-to-peer (P2P) network directly between users. This is a significant deviation from traditional technology that utilizes a central server.
This P2P network works with smart contracts to facilitate the movement of crypto. Once both parties meet the necessary requirements, the system automatically initiates the transfer of cryptocurrency from the sender to the receiver. Since there is no central server, any data or liquidity that has been sent cannot be retrieved. Considering this factor, any mistake that occurs during a transaction becomes permanent.
Within the decentralized web, these are some scenarios that can result in the loss of crypto:
- Sending cryptocurrencies to the wrong blockchain address.
- Making a mistake when copying and pasting public keys during transactions.
- Sending tokens using the wrong network.
- Giving out your private key and wallet access details to a third party. They can steal your tokens.
- Sending your cryptocurrencies through a wallet that does not support such tokens.
Possible Ways to Recover Scammed Cryptocurrency
If individuals are swindled or make an error when sending tokens to another wallet, there are several ways to recover scammed cryptocurrency. While they are not a guarantee, people have a chance of getting back their lost assets.
Below are possible ways to reclaim lost or misplaced liquidity:
- Contacting the centralized exchange to stop and reverse the transaction.
- Monitoring the movement of the cryptocurrency via a block explorer to pinpoint the destination wallet and try to unmask the owner’s identity.
- Contacting a crypto recovery service company to help you reclaim your funds for a fee.
Note: Sending crypto via the wrong network or to an unsupported wallet can lead to permanent loss of liquidity.
How to Prevent Token Loss
Meanwhile, we must note that there are no guarantees that people will get their funds back. For example, not all transactions take place via a centralized trading platform. The retrieval process becomes more complicated if the scammer uses a noncustodial wallet to receive the crypto or a decentralized exchange as a medium of transfer. If this is the case, the other options involve paying a recovery firm to get back your funds or using a block explorer to track the tokens’ movement.
The recovery company will usually charge you heavily for their services, and you may not be able to afford it as a micro investor. If you are able to afford it, their fees may be worth more than what was lost.
If people choose to track the transaction via a block explorer, there is not much that they can do. Even with the wallet ID, individuals cannot personally unmask the wallet holder’s identity. The best they can do is contact the platform with proof that the liquidity was stolen. However, most cybercriminals do not transfer their stolen funds to exchanges where they can be intercepted.
Considering the factors above, everyone’s best bet is to avoid instances that will make them lose their cryptocurrencies. Below are measures to prevent the loss of cryptocurrencies:
- Never give your private keys or account login details to anyone, even if the individual claims to be working for a blockchain company.
- Always confirm the network through which you are sending the crypto.
- Never send blockchain tokens to an unsupported wallet.
- Confirm the receiver’s public address before sending the tokens. Instead of typing it out, copy and paste the unique phrase.
Tectum Softnote Bills are revolutionizing how people transfer cryptocurrencies. Instead of the usual long and complex public key, people can make a Bitcoin payment by scanning a barcode and entering a secret code to confirm the transaction. This approach to crypto exchange removes the risks of permanent token loss arising from sending via the wrong network or to an unsupported wallet.
