Breaking: FBI Enforcement Action Validates Previous FinTelegram Warnings Against Fund Recovery Scams!

The U.S. Federal Bureau of Investigation (FBI) has taken decisive action against several cryptocurrency recovery websites, confirming FinTelegram’s longstanding warnings about these fraudulent operations. The FBI San Diego Field Office has seized websites belonging to three cryptocurrency recovery services, which validates our reporting and underscores the critical importance of our alerts to potential victims.

FBI Seizes Fraudulent Recovery Websites

On September 11, 2024, the FBI San Diego Field Office announced the seizure of websites linked to three prominent cryptocurrency recovery services: MyChargeBack, Payback Ltd., and Claim Justice. This operation targeted scams that further exploited victims of cryptocurrency fraud by offering false recovery services. In particular, the potential victims are misled by the false claim that Payback would be authorized by financial regulators in various jurisdictions (see screenshot right).

According to the FBI, these companies claimed expertise in tracing and recovering lost cryptocurrency funds but had no track record of success. They often charged significant upfront fees and promised high recovery rates, using extensive social media advertising and false reviews to lure victims.

The scale of the fraud is substantial. Between February 2023 and February 2024, victims reported losses totaling over $9.9 million to the FBI Internet Crime Complaint Center (IC3).

It must be mentioned, however, that not all websites involved in these vast fund recovery scams have been seized. The websites connected to the domains Payback.com, Payback-ltd.com, or Payback-law.com are still online. The central element is the PayBack brand, to which various domains link. This fund recovery scam works with an unmanageable network of domains, websites, and brands. Even the FBI has not been able to stop the scam.

Confirmation of FinTelegram’s Warnings

FinTelegram has consistently cautioned against the use of these services, particularly highlighting the deceptive practices of Pay Back. Our previous reports identified several red flags:

1. False claims of regulatory approval
2. Use of fake UK addresses and registration numbers
3. Operation through multiple similar websites
4. Exploitation of vulnerable scam victims
5. Demands for upfront fees
6. High-pressure sales tactics

The FBI’s action has now confirmed these warnings, demonstrating the accuracy and importance of FinTelegram’s investigative reporting.

Background and Key Data

While the FBI does not provide specific details about the individuals behind these operations, FinTelegram revealed the background and the individuals involved:

• MyChargeBack launched in 2016, initially gaining popularity before complaints about misleading practices increased.
• Payback Ltd (Money Back Ltd) is registered in Israel under company number 515711653, with headquarters at Ha-Khilazon St 5, Ramat Gan, Israel.
• These companies operate with various domains and websites.

Call for Information

FinTelegram urges victims or insiders with additional information about these operations to come forward. Your insights could be crucial in further exposing these fraudulent practices and preventing future victims. Please get in touch with FinTelegram confidentially with any relevant details or experiences related to these cryptocurrency recovery scams.