The rising popularity of cryptocurrencies has made it a fertile hunting ground for cybercriminals, with reports suggesting that investors have lost upwards of $1 billion to attacks and scams, in Q1 2022 alone.
In fact, according to some estimates, victims of crypto-related scams lose an average of $25,000, with some individuals losing over $1 million.
In a bid to reverse some of the damage, ConsenSys, the parent company of popular crypto wallet Metamask, has roped in asset recovery firm, Asset Reality, to launch a new service that’ll help investors recover their stolen cryptos.
Funds transfer mechanisms in the traditional banking system have well-established mechanisms to help track and reverse fraudulent transactions. However, while there are several third-party crypto recovery services, a streamlined recovery mechanism has been missing from the crypto realm.
“When a user has funds stolen, often due to being scammed into handing over their passwords or Secret Recovery Phrase, they often have nowhere to turn to, in what is an incredibly difficult time for them emotionally and financially,” noted Aidan Larkin, co-founder and CEO of Asset Reality, in a press release. “We’re proud to be partnering with ConsenSys and MetaMask to deliver this important service which will ultimately improve users’ experience in dealing with these situations.”
The service will be available for free for all MetaMask users across the globe, including across their most active markets in the United States, the UK, the Philippines, India, Vietnam, Brazil, France, Germany, and Nigeria.
Once a MetaMask user flags a loss through a scam, Asset Reality will take up the investigation and work with MetaMask to help build a case for the victims to pursue the recovery of the funds through legal means. While the tracking and documentary services will be free, the victims will still need to cover any legal costs.
“Through this industry-leading partnership with Asset Reality, ConsenSys and MetaMask want to allow victims to join together, build cases against these scam operations and bring them to justice,” reiterated Dan Finlay, co-founder of Metamask. “It’s really important that victims of hacks come forward, no matter how small. They could reveal or be the starting point of a wider investigation and create the opportunity to aggregate claims to commence potential legal action.”
It’s good to see wallets taking steps to help victims of crypto scams. However, it’s important to note that recovery of crypto assets is a long-drawn process that could involve costly litigation depending on the jurisdiction. This is why the best option to safeguard your assets is to exercise extreme caution while transferring funds, and educate yourself in order to maintain proper cybersecurity hygiene.