The US Federal Bureau of Investigation (FBI) has taken decisive action against several cryptocurrency recovery sites, confirming FinTelegram's long-standing warnings about these fraudulent operations.
The FBI San Diego Field Office seized the websites of three cryptocurrency recovery services, confirming our reports and underscoring the critical importance of our warnings to potential victims.
FBI seizes fraudulent cryptocurrency recovery websites
On September 11, 2024, the FBI San Diego Field Office announced the seizure of websites associated with three well-known cryptocurrency recovery services: MyChargeBack, Payback Ltd. and Claim Justice. This operation was aimed at scammers who further exploit victims of cryptocurrency scams by offering false recovery services. In particular, potential victims were misled by the false claim that Payback would be authorized by financial regulators in various jurisdictions (see screenshot at right).
According to the FBI, these companies claimed to have expertise in tracking 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 fraud is quite significant. Between February 2023 and February 2024, victims reported losses totaling more than $9.9 million to the FBI's Internet Crime Complaint Center (IC3).
It should be noted, however, that not all of the sites involved in these massive chargeback scams were seized. Sites associated with the Payback.com, Payback-ltd.com or Payback-law.com domains are still operational. The central element is the PayBack brand, which is linked to by various domains. This refund scam operates on an unmanaged network of domains, sites, and brands. Even the FBI couldn't stop this scam.
Confirmation of FinTelegram warnings
FinTelegram constantly warns against using such services, especially highlighting the deceptive practices of Pay Back. Our previous reports have identified several warning signs:
- False claims of regulatory approval
- Using fake UK addresses and registration numbers
- Work through several similar websites
- Exploitation of Vulnerable Fraud Victims
- Requirement of advance payment
- High pressure sales tactics.
The FBI's actions confirmed these warnings, demonstrating the accuracy and importance of FinTelegram's investigations.
Background and Key Data
While the FBI does not provide specific details about the individuals behind these operations, FinTelegram has revealed the background and individuals involved:
MyChargeBack launched in 2016 and gained initial popularity before complaints about deceptive practices increased.
Payback Ltd (Money Back Ltd) is registered in Israel under company number 515711653 and its headquarters are located at Ha-Khilazon St 5, Ramat Gan, Israel.
These companies work with different domains and websites.
