Identifying a Crypto Scam: A Guide to Investment Withdrawals & Deposits

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CoinTracker is a cryptocurrency portfolio tracker & tax calculator. It seamlessly integrates your existing cryptocurrency exchanges and wallets. CoinTracker is the most trusted place to monitor your cryptocurrency portfolio and calculate your taxes.

Investment Withdrawals & Deposits: How to Identify a Crypto Scam

We have seen scammers become more sophisticated in their approach of impersonating CoinTracker team members. They do this to defraud people of their hard-earned money. This guide covers some of the tactics we’ve seen scammers use while impersonating CoinTracker.

Have you been asked to send cryptocurrency to a “CoinTracker employee”?

If someone claiming to be from CoinTracker has asked you to send cryptocurrency to a wallet for holding, you are dealing with a scammer. CoinTracker will never ask you to send cryptocurrency to us. We don’t have the capability to store cryptocurrency for anyone. Our role is limited to requesting read-access to your existing wallets to deliver our services.

Are you receiving requests for compensation or to cover fees over Telegram, Whatsapp, etc?

Legitimate CoinTracker communication will never involve reaching out for compensation or to cover fees, especially over Telegram or similar services. If you’re uncertain about the authenticity of a message, it’s crucial to contact CoinTracker directly for verification.

Was a wallet address or login credentials provided to you, claiming to hold your CoinTracker funds?

CoinTracker is a portfolio tracker and tax management tool, not an exchange or wallet which can hold currency. Entering a wallet address into CoinTracker does not move those funds into our control, nor does it mean those funds are yours. Wallet addresses are public and can show anyone the contents of a wallet, but this does not equate to control or ownership.

RELATED : Best 10 Cryptocurrencies.

Have you been told you can withdraw from CoinTracker to a bank account?

This is a common misconception spread by scammers. CoinTracker does not facilitate direct withdrawals to a bank account or wallet because it is not an exchange service. Adding a wallet address to your CoinTracker account does not transfer any funds to us or imply those funds are yours.

Is a “broker” saying your funds are reportedly locked, requiring payment to unlock?

This is a scam tactic. CoinTracker does not hold funds on behalf of users, hence any claims that your funds are locked and require a tax, stamp duty, or other payments to unlock them are false.

Do you have a manual transaction in your account which you have been told represents an investment?

Scammers are very good at using CoinTracker to deceive people and make it appear like CoinTracker holds actual funds, even though this is not possible.

Many scammers do this by adding “manual transactions” into your account (you may see a “Manual” tag on the transaction in CoinTracker). These “manual transactions” do not represent real synced data like you would see in a bank account, but have been inserted into CoinTracker by the scammer themselves.

While these transactions may appear real it is important to understand that any transaction tagged with “Manual” can be set to any number—you can have a manual transaction of a hundred BTC, but it is still a made-up number and does not represent actual funds.

RELATED : Best 10 Cryptocurrencies.

When scammers have added manual transactions to CoinTracker, they may try to trick you into thinking that these are real balances that can be withdrawn to a wallet or a bank account. They are not real balances and cannot be withdrawn.

Understanding CoinTracker’s Functionality

Think of CoinTracker as software that automates tracking of your cryptocurrency transactions across various exchanges and wallets, similar to an Excel spreadsheet. Just as you can manually add data to an Excel sheet, you can add transactions to CoinTracker. However, manually added transactions do not necessarily reflect real balances, and scammers exploit this feature to deceive users. These fictitious balances cannot be withdrawn because no funds are present.

What to Do If You Suspect a Scam

If you believe you’ve been the target of a scam involving CoinTracker you should report the incident to your local law enforcement. If you want to check if a communication from CoinTracker is legitimate, please feel free to contact us.

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