Financial fraud has reached epidemic levels, with criminals stealing billions through sophisticated cryptocurrency schemes. These operations target everyone from elderly victims on dating apps to seasoned investors seeking quick returns. Ralph Dahm, a certified blockchain investigator and founder of Twin Oaks CRS, has dedicated his career to tracking down these digital thieves and helping victims recover their stolen assets.
Uncovering the Fraud Epidemic
The numbers tell a sobering story about cryptocurrency fraud. According to Ralph’s research, “the FBI’s ic3.gov website received over 800,000 new claims from US citizens who were swindled out of large amounts of money” in 2024 alone. Many of these victims lost everything they had worked for. “In many cases, entire life savings were lost to criminal activity,” he explains, highlighting how devastating these crimes can be for ordinary people. The problem keeps getting worse each year. “The FBI estimates over $50 billion per year is stolen, and that amount is growing due to criminal organizations targeting U.S. citizens, especially the elderly,” he notes. These aren’t small-time operations but organized criminal enterprises that specifically target vulnerable populations with sophisticated psychological tactics.
Recognize Red Flags of Crypto Scams
Romance scams have become one of the most devastating tactics criminals use. He has investigated countless cases where victims thought they found love online. “Most victims miss the early warning signs, such as promises of a romantic relationship or marriage in the case of romance scams, also known as pig butchering scams,” he says. The “pig butchering” name comes from how scammers fatten up their victims emotionally before taking their money. Investment fraud follows similar patterns but focuses on greed instead of loneliness. Criminals create fake trading platforms that promise huge returns with minimal risk. “There’s pressure to act fast with little to no transparency about who is behind the offer,” Ralph notes. When someone demands cryptocurrency payments but won’t provide credentials, that should end the conversation immediately.
These aren’t amateur operations run from someone’s basement. He has seen how methodical and calculating these criminals have become. “Scammers thrive on social engineering. They are patient, sophisticated, and are employing long-term confidence schemes to get your money.” They’ll spend months building fake relationships through dating apps, social media, or even random text messages. The fake investment platforms are particularly clever. Criminals will actually let victims withdraw small amounts initially to build confidence. “Sometimes they even let you withdraw some of the money you invested to make it appear you were getting profits. This is totally fake. It’s just to ensure your buy-in so they can get you to invest even more money,” he explains. Once victims invest larger amounts, the criminals disappear. Celebrity impersonation represents another growing threat. Ralph recently worked on a case involving a French woman who lost everything to a fake Brad Pitt. “She had been texting with the impersonator for several months, was convinced Brad Pitt wanted to marry her, so she divorced her husband, and then sent her divorce settlement of $800,000 to Brad Pitt.” The scammer vanished immediately after receiving the money, leaving the woman homeless.
Traceability Is Not Anonymity
Many victims assume their cryptocurrency is gone forever once they’ve been scammed. Ralph’s work proves otherwise. Every blockchain transaction creates a permanent record that investigators can follow. “A common misconception is that cryptocurrency is anonymous. While true in many respects, the reality is that every transaction leaves an immutable audit trail,” he says. The challenge comes from how quickly criminals move stolen funds. “Many times, the criminals move stolen currencies several thousand times per hour. Early intervention is critical. The sooner we can follow the money, the better the odds of freezing it or recovering it,” he explains. His company uses artificial intelligence tools to track these rapid movements across multiple wallets and blockchains. However, private investigators have limitations. Ralph’s team can identify where stolen funds went, but they can’t force anyone to return them. “We do not have subpoena authority. We need to partner with law enforcement who can issue a subpoena or warrant to freeze and seize stolen assets,” he notes.
Partner with Experts Early
Too many victims wait until they’ve lost massive amounts before seeking help. Ralph sees this pattern repeatedly in his cases. “Only 1 in 20 even report having been victimized,” he says, making prosecution much more difficult. Early intervention can prevent additional losses and start the legal process for potential recovery. Victims need to be careful about who they turn to for help. The same criminals who run investment scams often operate fake recovery companies. “Be aware many of the fake recovery companies who may be working with the original scammers to take even more of your money might contact you,” Ralph warns. Legitimate investigators will gladly answer questions about their background and credentials.
His advice for avoiding scams comes down to basic common sense. Check how long websites have been operating, research the people contacting you, and don’t rush into anything. “If it’s not a good deal tomorrow, obviously it’s not a good deal today,” he says. There’s never a legitimate reason to pressure someone into immediate cryptocurrency payments. The epidemic of cryptocurrency fraud won’t stop without coordinated efforts between investigators, law enforcement, and educated consumers. Ralph continues working with agencies at all levels to track down criminals and recover stolen assets for victims.
Connect with Ralph Dahm on LinkedIn to learn how blockchain investigation can recover what was lost.
