Blockchain.com Scam – How is the Fraud Perpetrated?

The popularity and spiraling success of Blockchain.com can’t be denied. Since its initial launch in 2011, the website has become a go-to platform for millions of traders to buy crypto, exchange digital currencies, and use the company’s wallet.

As one of the first blockchain campaigns, it took a full swing and relentlessly developed further, both through fundraising activities and by acquiring other apps and projects. According to the official website itself, the firm currently has over 37 million verified users with over 88 million wallets created.

This kind of success, sooner or later, attracts the attention of swindlers who wish to make a buck or two, as well. Considering the numerous Blockchain.com scam attempts, we are going to discuss the most prevalent ones and what you can do in order to report them and secure your assets.

What is Blockchain.com?

Blockchain.com was founded in 2011 as a private company by Peter Smith (today’s CEO), Benjamin Reeves, and Nicolas Cary. The company website first aimed to provide a track of Bitcoin transactions. Already a year later, an innovative idea was born. The website had been repurposed to be a Bitcoin payment terminal, an exchange platform and a digital wallet.

During the next several years, the firm built a huge user base of over a million clients. The site did face ups and downs like being removed from the online App Store, but it was quickly reintroduced. In 2018, the company also started providing services to institutional clients, which was another significant leap in the firm’s history and activity.

According to CNBC, in 2021, there were over 65 million Blockchain.com wallets with 28% of all Bitcoin transactions since 2012 completed through it. After one successful fundraising round after another, the final data suggests the company’s total worth to be around $5.2 billion.

Today, the company employs about 450 experts in blockchain and similar fields. It is also mainly focused on providing digital wallet services, exchange, market data, analysis, and insights, as well as the possibility of exploring digital currency transactions.

How Does the Blockchain.com Scam Work?

Blockchain.com fraud is frequent, especially considering the number of people using the platform and its popularity among retail and institutional clients. Fraudsters try to impersonate the company staff or support agents or use entirely different approaches to access your funds.

The goal that the scammers are trying to achieve is to lead victims to believe they are indeed something they aren’t, like firm’s technical experts, recovery advisors and similar. False association with regulatory bodies and financial institutions also helps them appear credible. After they’ve convinced their targets of their fake status, another phase of the scam takes place.

Targets can be asked to perform particular actions, like clicking on suspicious links received from email addresses that resemble the firm’s emails. Furthermore, con artists can also claim that they have detected a dormant account that the victim can claim. During the process, it is common to see victims being asked to make a deposit or advance fee. Let’s elaborate on the specifics of these tactics further.

Fake Emails Requiring You to Reactivate Your Account

The vast majority of the Blockchain.com complaints pertain to suspicious email addresses that may look like they came from Blockchain.com but didn’t.

These emails usually contain claims about coming from the legitimate source, like the company’s staff or help desk. Claims found in such messages urge the victims to reactivate their dormant accounts or accounts that have been lost or compromised.

What the victims are expected to do is to share their personal information like their contact details, ID number or account credentials. Sensitive data acquired this way is used by cybercriminals for identity theft or to facilitate access to the trader’s funds.

Blockchain.com legit employees would never contact users out of the blue or unless the contact is requested by the user, so that’s one certain way to recognize this fraud.

Fraudulent Recovery Firms Posing as Blockchain.com Employees

Blockchain account recovery fraud is also one typical strategy used to fool traders into paying advance fees or sharing their personal information. In order to approach their targets and gain trust, these charlatans impersonate a professional recovery service. Those targeted have already fallen victim to some form of scam.

In their desperation and eagerness to quickly get their lost funds back, investors don’t rethink their actions and are easily manipulated into doing things scammers order them to do.

Recovery room cons demand their victims to share their personal data for identity theft but also pay fees before the service is delivered. These payments are usually disguised as administrative taxes or other forms of fees. That’s how victims get robbed once again.

Fake Taxes Before Crypto Withdrawal

False investment proposals are regularly linked to asking for taxes to be paid before the withdrawal of funds. Various fake investment professionals and alleged crypto advisors contact investors to offer them deals that promise high returns and stable income.

To convince their targets to invest, these scam agents often use high-pressure tactics to advertise their proposals as once-in-a-lifetime deals that will expire soon. The huge profit promised as a result of such reckless investing is supposed to be acquired without any effort, which attracts both investment novices and inexperienced traders.

However, when the time for withdrawal comes, victims are asked to make payments before they can have the promised gain. These high advance fees are how tricksters earn, and investors are left empty-handed.

How to Report Blockchain.com Fraud?

The best prevention of crime is to always be alert and vigilant. Danger lurks on every corner as fraudulent tactics and methods become more convincing than ever. Con artists have sharpened their impersonation skills to the point they’re difficult to recognize.

Besides educating yourself more by reading the Blockchain articles on common types of scams, you can also report any suspicious individuals or websites.

In order to reach out to the official support service and Bitcoin help center, you can simply submit your request by following the instructions. This function can also be used to report suspicious activity when someone asks you to share your personal information, account specifics, or demands money from you.

What to Do If I Was a Victim of a Blockchain Scam?

If you’re thinking something along the lines of “Blockchain scammed me. How do I get my assets back?” we might have a solution for you.

Crypto asset recovery demands a set of particular skills and technology to be employed in order for the transaction to be tracked and the identities of parties to be revealed. That is, however, exactly what our experts specialize in. Therefore, if you want to recover funds Blockchain cons have stolen from you, don’t hesitate to contact us promptly.