Recover the funds you lost to scammers in an blackmail scam. Recover the funds you lost to scammers in an blackmail scam.

Recover Funds Lost To Online Blackmail

One of the first concerns for cybercrime victims is whether they can recover their stolen money. Here at Digital Forensics Corp., we frequently handle online blackmail cases, and one of the most common questions we receive is whether we can assist in recovering lost funds.

The answer to whether you can recover the money? Possibly. Your success depends an many factors, including the payment method used, how quickly you act, and whether the scammer can be identified.
In some cases, funds can be recovered by different financial institutions so long as the victim takes swift action. Less traceable payments will decrease your potential for success significantly. Understanding these variables as well as where you can seek assistance is what we’ll explore in this guideline for getting your money back from scammers.

Can You Get Your Money Back?

That depends on the way in which the victim was scammed and the manner in which money was transferred.  Regardless, acting quickly is the most important aspect in increasing your chances of getting your money back from the scammer. Collecting evidence, specifically pertaining to payment method and time of payment, and filing a report when the scam is happening is the best way to improve the likelihood of successful recovery.

Type of Currency and Their Recoverability

Each form of currency transfer operates differently and poses varying levels of difficulty in the recovery process. The method in which you relinquished the funds to your scammer plays an imminent role in the possible recovery of lost funds from cyber extortion.

  • Bank Transfer: While bank transfers in which the victim willingly sent funds are typically difficult to reverse, it is advised that you contact your bank and report the transfer. Additionally, you should close or freeze the account and stop any pending transfers to avoid additional losses.
  • Credit Card Payments: Contact the provider of the credit card and report the transaction as fraudulent. Many credit card suppliers have policies in place that protect users from fraudulent transactions. There are also some credit card companies that will reverse the charges immediately while their internal fraud department investigates the issue.
  • Cryptocurrencies: Cryptocurrencies, while difficult to set up, are a common method used in online blackmail cases due to the difficulty of reversing these transactions. While it is unlikely you will be able to recover the money you sent, it is advised that you contact the platform in which you made the transaction and work with them to reverse the charge. It’s a long shot, but it is possible in certain cases.
  • Gift Cards and Prepaid Debit Cards: These types of payments are nearly impossible to trace and recover due to the scammer’s ability to quickly access and relocate the funds. In these cases, it is best to file a report to the Federal Trade Commission (FTC)(1) to open a case and understand your potential to recover any of the lost funds.
  • Payment Applications: While your bank is unlikely to reverse any transactions made through payment apps, many of these applications offer methods to cancel or reverse transactions through their systems. Look into the app’s support policy and report the transfer accordingly.
  • Cash Payments: Unfortunately, cash payments are virtually impossible to recover once they reach the scammer. In some cases, you may be able to contact your postal inspection agency to intercept the package, but once the cash is out of your hands, the chances for getting it back are slim.

What Steps Should You Take If You’ve Paid a Cybercriminal?

In an ideal world, you should never pay somebody who is trying to blackmail you online. This will only result in further requests for money. Your best method to stop your blackmailer is to work with the right professionals who can track and work against these criminals on your behalf. If you are concerned with potential exposure and the time it takes to file the right reports, we suggest you deploy delay tactics, such as needing time to collect the funds.

If you’ve already paid the scammer, it is important that you report the case immediately to the proper authorities.

  1. Law Enforcement: You should file a police report as soon as you realize that you have been threatened or scammed. Collect evidence such as messages between you and the perpetrator, accounts and contact information of the criminal, and any record of transactions that have taken place.
    In cases of cybercrime, you may be advised to file additional reports with the FBI and FTC(2).  This will depend on the nature of your scam and the amount which you’ve been extorted. If you’d like additional information on how to report issues like this to the police, click here.
  2. Cyber Security: Professionals in cyber security can help you to not only avoid potential internet scams, but also aid in potentially recovering lost funds. Cybersecurity firms well versed in digital forensics specialize in tracking different data points involved in financial transactions, digital communications, and file transfers which can identify criminals and discover where the money was sent.

In addition to these resources, you should contact your bank as quickly as possible. The sooner you report a fraudulent transaction to your bank or financial institution, the better they will be able to assist you.

Why Time Matters in Recovering Funds..

As previously mentioned, timing is the most important factor in recovering money that’s been lost to an online blackmailer.  The quicker you take action to resolve the matter, the more likely it is that you will be able to get back your stolen funds.

Many banks send our fraud detection alerts for unusual transactions made using your account. It is important to regularly check verifiable alerts sent to you from you bank as well as monitor you bank statements in order to detect potentially fraudulent transaction and report them as quickly as possible.

Will Your Bank Reverse the Charges?

The answer to this question isn’t so cut-and-dry, as there are many factors at play that will determine whether your bank will be able to reverse the transaction. It is important to make a fraud claim as soon as possible as this helps raise the chances of recovering your money from the blackmailer. With laws in place such as the Electronic Fund Transfer Act, you won’t be held liable for unauthorized transactions reported within two days(3).

Under the EFTA, banks must accept and investigate charge disputes, with different timetables depending on the method of payment used for the transaction being disputed. If the bank determines the transaction was fraudulent, the must issue you a refund. If not, you can dispute their investigation’s decision with the aid of organizations such as the Consumer Financial Protection Bureau(4).

Law enforcement agencies in 196 countries around the world are members of inter-governmental organization called the International Criminal Police Organization, or INTERPOL. This group helps police communicate across borders through a communications system called I-24/7, helping with the limitations that arise from jurisdiction restrictions. While INTERPOL can’t guarantee a recovery of your funds lost to online blackmail, they can help you combat your scammer in the event that they are working out of another country (5).

Each year, INTERPOL conducts an annual operation titled First Light. These operations target social engineering scams including phishing, investment fraud, fake online stores, romance scams, and impersonation scams. Through Operation First Light 2024, INTERPOL was able to arrest 3,950 scammers and identify an additional 14,643 potential suspects across the globe. The operation successfully intercepted $137 million in fiat currency and cryptocurrency. An additional $120 million worth of assets was also seized (6).

Realistic Expectations and Moving Forward.

When trying to recover funds from an online blackmail scam, it is important to have practical mindset. Unfortunately, each case will not receive the resources of an operation such as First Light. While it is possible to recover your lost funds, depending on the payment method, it may be more beneficial to move forward to investing effort into preventing any further damage.

Contacting cyber security experts such as the ones here at Digital Forensics Corp. (DFC) can help you to mitigate the chances of becoming a victim of cybercrime. We can help you take back leverage in the event or online blackmail such as sextortion and remove the necessity to make any payments to your harasser in the first place.

Whether you are currently being blackmailed for money or have already made payments to the perpetrator, DFC can help you collect the necessary evidence to file a report to law enforcement. Not only that, but our ability to track down the location of the criminal in addition to our collaboration with police precincts around the world enable us to aid you in bringing these scammers to justice no matter where they reside.

If you are somebody you know has been affected by a cybercrime such as online blackmail or sextortion, do not waste another minute. Get the help you need today by reaching out to our 24/7 Blackmail Helpline or Sextortion Helpline.

Resources:

  1. https://reportfraud.ftc.gov/
  2. https://www.ic3.gov/
  3. https://www.federalreserve.gov/boarddocs/caletters/2008/0807/08-07_attachment.pdf
  4. https://uscode.house.gov/
  5. https://www.bankcustomerassistance.gov/help-topics/fraud-scams/scams/wire-transfer-scams/wire-transfer-scams-fraudulent.html
  6. https://www.interpol.int/en/News-and-Events/News/2024/USD-257-million-seized-in-global-police-crackdown-against-online-scams

DISCLAIMER: THIS POST IS FOR INFORMATIONAL PURPOSES ONLY AND IS NOT TO BE CONSIDERED LEGAL ADVICE ON ANY SUBJECT MATTER. DIGITAL FORENSICS CORP. IS NOT A LAWFIRM AND DOES NOT PROVIDE LEGAL ADVICE OR SERVICES. By viewing posts, the reader understands there is no attorney-client relationship, the post should not be used as a substitute for legal advice from a licensed professional attorney, and readers are urged to consult their own legal counsel on any specific legal questions concerning a specific situation.
The information presented in this article is based on sources that are not readily available to the public and may be subject to restrictions or confidentiality. It is intended for informational purposes only.