July 31, 2024
I received a call on a Tuesday afternoon from a gentleman who asked if I could help him transfer his funds back into fiat (U.S. Dollars). I said absolutely and started with a few questions before setting a time to meet. When I asked what token he was holding, he seemed very unsure and mentioned that his friend had set everything up for him. I then asked if this was someone he knew personally. He said yes but clarified it was an online acquaintance. My red flags were immediately raised. I inquired if he had ever met this person in real life, and he replied no. That’s when I knew it was going to be a difficult day for him.
I explained that I charge $100 per hour for consulting, but if this turned out to be an unfortunate situation, I would halve my fee. I don’t enjoy charging clients full price when they’ve just been scammed out of thousands of dollars. I often get calls where hundreds of thousands have been stolen due to misplaced trust in an online stranger. He was relieved that I could handle his issue quickly, unlike others he had contacted. We arranged to meet at my office after he finished work.
Before our meeting, I researched the coins and companies he mentioned to better understand his situation. When we met, I continued to ask questions and reviewed his holdings on his apps using his phone. He asked me to handle everything because he felt lost and didn’t want to learn. Normally, I guide clients through the process to educate them, but he was very dismissive and uninterested in learning or engaging with the new technology. So, we did a dance of handing the phone back and forth as he needed to enter his passwords for various apps.
My heart filled with frustration. This negative experience had clearly ruined his future interest in the space. He was unwilling to learn the new tech, despite believing it had potential, especially for leaving something behind for his grown kids. We submitted a withdrawal to his preferred safe exchange platform, which was great for any beginner or novice wanting to limit mistakes. After waiting a few moments for the withdrawal to show up, something started to feel off.
As time passed, I asked him personal questions about his passions, work, and future plans, all while checking the blockchain transaction ledger between the two wallets. I had him open the app, and we saw that the withdrawal was submitted for review—a big red flag. I noticed there was no KYC setting, no customer support, and other key elements missing from a legitimate blockchain application. Unfortunately, there was no transaction in process between the wallets.
At this point, I had to break the bad news. I explained what the situation likely was and what would probably happen now that the gig was up. I told him they would likely try to get him to put more money in, typically around $10k, under the guise of paying taxes first before releasing funds after fake transactions that seemingly increase the balance. He mentioned that she had asked him to put in $10k for a future trade, which prompted him to seek help.
People often reach out after they’ve already been taken advantage of. They would rather risk the dollars upfront than pay for education or research the wealth of information on how to safely transact blockchain. Either way, there is a cost—whether it’s the financial risk of not knowing or the time and money spent on learning.
We pride ourselves in helping anyone seeking more information. Most times I am able to discern the scam entirely over the phone. Few times people are willing to pay to learn how to not to make the same mistakes again and more, others shy away entirely, sometimes they repeat the same mistake again. Reach out to us at DigiWealth if you have unanswered questions in crypto & blockchain we are the go to company for getting help in-person.