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The number of victims losing money to Crypto Investment Scams has been increasing significantly each year. As a result, there are many organizations, both legitimate and dubious, offering to help victims recover their lost money.
We came across a site called Scamback which is putting a unique spin on trying to help victims get their funds back. Scamback claims to have created the $BACK token in which scam victims can invest and enter a ‘lottery’ to get back the amount they lost to investment scams.
However, we found several signs suggesting that Scamback’s $BACK token may not be a legitimate investment and rather a scam itself. Looking at the domain registration information, we can see that the site was created very recently in February 2022. The registrant’s details such as name, location and contact information have been hidden using a paid service. Therefore, it is a brand new website that is being operated anonymously.
When we look at how the creators of Scamback plan to help scam victims recover their money, a few problematic facts emerge. The scheme depends on investors buying the token and staking it, following which they will be entered into a lottery to potentially get back the same amount they lost. Therefore, it appears that investors' funds will be pooled and staked, in theory creating a profit that will be used to give victims back more money than they put into the scheme. It is an investment scheme wearing the guise of a lottery.
When we look further into the scheme, there are indications that it might actually be a Pyramid scheme. This means that money from new investors is used to pay old investors. The website also mentions a ‘tiered system’ and that the creators expect that new members will forever be joining the scheme. In addition, investors are given bonuses for tokens bought by people they refer. All of these are classic hallmarks of fraudulent pyramid schemes.
When I visited the website, it mentioned that the token had a pre-sale going on. However, when I checked Pinksale, I found that the pre-sale had been cancelled. Despite this, the timer on the website was still active.
The ‘whitepaper’ given on the website mentions that all the team members of the project are KYC verified. Looking at the LinkedIn profiles given on the website casts doubt on whether these people actually exist at all. The team members have no online footprint and their LinkedIn profiles contain absolutely no information about their educational backgrounds or work experience. Therefore, it does not seem like the project creators are being truthful about their identities.
The website does not contain any company information such as name, address or contact details. The only way to communicate with the scheme managers is through anonymous channels, namely, Twitter, Telegram, Instagram and Discord. These channels do not provide any proof about the scheme or team members being legitimate.
No reviews for Scamback could be found online on sites like ScamAdviser and Trustpilot.
Considering all the facts given in this article, it may be wise to avoid investing in Scamback’s $BACK token to recover the money you lost to a scam, as Scamback itself may turn out to be a Pyramid scheme where investors on lower tiers suffer massive losses.
This article has been written by a scam fighter volunteer. If you believe the article above contains inaccuracies or is missing relevant information, please contact ScamAdviser.com using this form.
