CRYPTOCURRENCY FRAUD INVESTIGATION

Our team of forensic accountants are perfectly placed to help limit your exposure through a cryptocurrency fraud investigation.

How Forensic Accounting can Assist with Cryptocurrency Fraud Cases

Cryptocurrency fraud has become highly prevalent in recent years. This boom can be traced to the relative anonymity perpetrators enjoy, as well as the lack of any one centralised supervision unit. This is where forensic accounting can be invaluable. Cryptocurrency forensics experts are hugely experienced and skilled accounting professionals, and provide meticulous attention to detail and investigation skills.

Why Are Cryptocurrency Investigations Challenging?

Cryptocurrency investigations have often been incredibly difficult due to how new the practice is, it being unregulated, the speed with which crypto can be moved and traded from account to account, and how often innovations in the field are cropping up.

One of the most challenging aspects of cryptocurrency investigations can be the use of methods such as P2P networks, privacy coins, nested exchanges etc. to conceal the identity of those taking part in a transaction.

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If you are looking for an expert to conduct a thorough cryptocurrency fraud investigation, contact our specialist forensic accountants today.

Types of Cryptocurrency Fraud

Examples of cryptocurrency fraud include:

  • Financial Crime: Money-laundering, tax avoidance, etc.
  • Fraudulent Initial Coin Offerings (ICOs): The first ever sale of a crypto, an ICO, is a common method of fraud.
  • Market Manipulation: Attempting to manipulate the market for ones gain
  • Ponzi Schemes: The uninformed can often be caught up in ponzi schemes.
  • Theft: Hacking of crypto wallets, setting up fake exchanges, etc.
  • Fake Crowdfunds: When new crypto comes out they may opt to crowdfund to raise money. It’s possible for this money to go missing.

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The Forensic Accounting Process for Cryptocurrency Fraud Prevention

A cryptocurrency fraud investigation has a variety of different important, complicated steps to go through. From initial consultations in order to collate information on your exact situation, right through to potentially representing you in court, cryptocurrency forensics are designed to ensure that every part of the process is undertaken efficiently and effectively.

As with every forensic accounting case we take on, upon initial contact a forensic accountant will consult with the client. This is done so we can formulate a complete picture of your situation in order to offer as accurate an opinion as possible, and in turn formulate an all-encompassing service to suit your needs.

Once information, evidence, and data is provided by the client, our team will get to work performing a detailed and thorough analysis of everything — ensuring that no stone is left unturned. Should any further requests be made to the client with regards to sending additional documents, these will also be analysed as quickly as possible

When conducting cryptocurrency fraud investigations, forensic accountants have been forced to devise a way to combine their traditional methods with more complicated techniques catered to the blockchain. An important aspect in the role of a forensic accountant is the ability to keep up with the latest trends, to stay one step ahead of any potential fraudsters.

Once all information has been collated and analysed, the forensic accountant on your case will present their findings in a detailed report. An important part in the role of a forensic accountant is rooted in their ability to present findings in as accessible a manner as possible, while ensuring that it can withstand significant cross examination in court.

While the intention of all cryptocurrency fraud investigations will be to avoid court wherever possible, it may be necessary for a forensic accountant to assist a legal team and act as an expert witness. Having the assistance of an experienced and highly skilled forensic accountant behind you can often be pivotal in securing a positive outcome in your case.

How We Help with Cryptocurrency Fraud Cases

With decades of experience in dealing with traditional cases of financial fraud, paired with a deep understanding and insight into the still relatively new world of cryptocurrency, our cryptocurrency forensics team possess the expertise to assist you with a variety of situations

From initial enquiries, assessment of information and data, through to the intricacies of a cryptocurrency fraud investigation and acting as an expert witness — we remain by your side, offering vital support throughout the process.

Frequently Asked Questions

When big money is involved it’s inevitable that fraud will follow, and cryptocurrency is no different. Cryptocurrency fraud involves when one party seeks to use digital currency such as Bitcoin, Ethereum, etc. to, in some way, defraud another. This can be done via investment schemes, phishing, ponzi schemes, and much more.

If you live in England, Wales, and Northern Ireland and believe that you may have been a victim of cryptocurrency fraud or other forms of cyber crimes, we recommend that you get in touch with a forensic accountant to assess your case, before reporting it to Action Fraud.

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