>
To protect cryptocurrency from fraudulent attacks, programs and exchanges with enhanced security are created. Or a multi-level data preservation system. Therefore, there are special procedures that allow investigating financial operations with cryptocurrency.
Blockchain Investigation
Blockchain investigations refer to a service aimed at investigating an incident related to cryptocurrency theft. With the help of this technology, it is possible to determine the location of the lost cryptocurrency and organize the investigation process for its potential return.
How to Investigate Blockchain Transactions
When it is confirmed that cryptocurrency theft has occurred and you trusted someone who promised honest deals but turned out to be a fraudster, there is a function that allows investigating the crime. For this, several effective steps must be taken:
provide comprehensive information about transactions, dates of transfers, and transfer amounts. This information should be in the hands of law enforcement agencies, and these matters are handled by cyber police;
during the investigation, actions are taken to work with information about exchanges that are blacklisted;
understand the connections of electronic wallets;
if during the investigation it is found that the stolen funds are on one of the exchanges, the administration of the exchange should be contacted, and by providing evidence, demand the freeze of the stolen funds.
Tracking Transactions in Blockchain
Any cryptocurrency transaction necessarily requires confirmation, each confirmation is organized in the form of blocks from which a chain is built. The larger the network, the more reliable it becomes. Before the operation is fully confirmed and processed, it must have a certain number of approved blocks, which is determined by the type of currency.
Everyone involved in the blockchain procedure has information with access to the operations carried out in any part of the formed chain. To familiarize yourself with the data of this chain, you need to refer to explorer programs. They are engaged in searching the blockchain system - this allows the user to find information about a specific transaction or all links in the chain as a whole.
Blockchain as an Investigative Tool
Specially created explorer programs are aimed at tracking the status of operations. Due to the fact that the chain of transactions with confirmation status takes a long time, it provides more opportunities to track the transaction.
Blockchain in the investigation process allows organizing the following processes:
- determination and analysis of the number of transactions carried out in cryptocurrency;
- monitoring crypto wallets that carry out large transactions;
- tracking these same portfolios in cryptocurrency;
- tracking activity on different crypto exchanges;
- using advanced information processing tools.
Cryptocurrency Theft and Blockchain
There are several types of theft in the cryptocurrency market:
- attracting to fake airdrop sites, where free distribution of recently created cryptocoins without confirmation is offered;
- cryptocurrency phishing allows siphoning information about personal data and accounts on exchanges;
- fraud during exchange operations - this is a deliberately false overstatement of the exchange rate during the purchase or sale of virtual money outside the exchange;
- artificially created inflated price of cryptocoins, the appearance of rapid growth in a short time without proper justification for the increase;
- theft of crypto money after trust management, fraudsters pose as professional traders, enticing the client to transfer their funds for profit under their control.
Blockchain Fraud Investigation
Working with cryptocurrency is a risky business, so to avoid conducting blockchain investigations in the future, it is necessary to consider steps to protect against fraudsters. There are several key positions that will allow you to protect yourself in this process:
- cryptocurrency operations (must be conducted on verified trading platforms and exchanges with a long history of operation and positive reputation);
- carefully handle information about personal data (which reveals access to bank accounts or cryptocurrency wallets) and keep the information confidential;
- do not believe promises of quick and easy profits (responding to internet ads and clicking harmful links) - these are clearly fraudulent schemes;
- for conducting crypto money exchanges, it's better to use special exchange services (which ensure the reliability of the operation and protection);
Attentiveness and caution will ensure the protection of cryptocurrency and operations conducted with it. And the above safety measures will help avoid blockchain investigations.