PLEASE NOTE: Psychology Clarification
The following specific modalities within the practice of psychology are restricted to psychologists appropriately trained in the use of such modalities:
Diagnosis: The diagnosis of mental, emotional, or brain disorders and related behaviors.
Psychoanalysis: Psychoanalysis is a type of therapy that focuses on helping individuals to understand and resolve unconscious conflicts.
Hypnosis: Hypnosis is a state of trance in which individuals are more susceptible to suggestion. It can be used to treat a variety of conditions, including anxiety, depression, and pain.
Biofeedback: Biofeedback is a type of therapy that teaches individuals to control their bodily functions, such as heart rate and blood pressure. It can be used to treat a variety of conditions, including stress, anxiety, and pain.
Behavioral analysis: Behavioral analysis is a type of therapy that focuses on changing individuals’ behaviors. It is often used to treat conditions such as autism and ADHD.
Neuropsychology: Neuropsychology is a type of psychology that focuses on the relationship between the brain and behavior. It is often used to assess and treat cognitive impairments caused by brain injuries or diseases.
SCARS and the members of the SCARS Team do not engage in any of the above modalities in relationship to scam victims. SCARS is not a mental healthcare provider and recognizes the importance of professionalism and separation between its work and that of the licensed practice of psychology.
SCARS is an educational provider of generalized self-help information that individuals can use for their own benefit to achieve their own goals related to emotional trauma. SCARS recommends that all scam victims see professional counselors or therapists to help them determine the suitability of any specific information or practices that may help them.
SCARS cannot diagnose or treat any individuals, nor can it state the effectiveness of any educational information that it may provide, regardless of its experience in interacting with traumatized scam victims over time. All information that SCARS provides is purely for general educational purposes to help scam victims become aware of and better understand the topics and to be able to dialog with their counselors or therapists.
It is important that all readers understand these distinctions and that they apply the information that SCARS may publish at their own risk, and should do so only after consulting a licensed psychologist or mental healthcare provider.
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ScamsNOW!
The SCARS Institute Magazine about Scam Victims-Survivors, Scams, Fraud & Cybercrime
A Quick Lesson in Asset Forfeiture for Scam Victims
A Commentary on the Process of Recovering Cryptocurrency
Primary Category: Guest Editorial
Author:
• Val Harkless, Senior Fraud Analyst/Investigator
About This Article
Cryptocurrency asset forfeiture for scam victims is a challenging process primarily due to limited resources and complex legal procedures. Investigators and agencies face significant hurdles, including a lack of trained personnel, high prosecution thresholds (typically between $300,000 to $500,000), and minimal experience in handling crypto-related investigations.
Asset forfeiture typically falls under three categories: administrative, criminal, and civil judicial, with most major cryptocurrency forfeitures processed through civil judicial actions.
This method does not require a criminal conviction and allows the government to seize assets more effectively, even from criminals outside the U.S. Despite growing efforts and proposed legislation to streamline the process, such as lifting the $500,000 cap for administrative forfeiture, progress remains slow.
The U.S. Treasury Department and law enforcement agencies continue to strategize on combating crypto fraud, including partnerships with private companies for forensic analysis. Meanwhile, educating the public is critical in preventing future victims .
A Guest Editorial: A Quick Lesson in Cryptocurrency Asset Forfeiture for Scam Victims
A SCARS Institute Guest Editorial by Val Harkless, Senior Fraud Analyst/Investigator
This question was asked last week by a victim at the FINRA conference by victims Brian Glick and Jules Peterson. However, it is a question that has been asked many times by victims of crypto crimes especially when their loss is very significant. The best answer is because of RESOURCES. Previously, I worked as a contractor for the FBI’s Asset Forfeiture program for almost a decade. My experience is that this process can be frustrating for investigators, agents, analysts, and victims.
Below are some key points as to the lack of prosecution:
There are 3 Types of Asset Forfeiture:
Administrative, Criminal, and Civil Judicial. The majority of the major crypto cases that have been successfully prosecuted have been Civil Judicial.
Administrative Forfeiture: Many federal law enforcement agencies are authorized to seize crypto-assets valued at less than or equal to $500,000 at the time of seizure via an admin forfeiture procedure without judicial approval. This is an action against the asset and not a person. If a claim is filed, then the asset must be disposed via criminal forfeiture or civil judicial action.
Criminal Forfeiture: Criminal forfeiture actions are actions against a defendant where only property in which the defendant has a true interest may be forfeited. Note: some crypto forfeiture actions are filed whereas the true owner cannot be identified. Assets totaling $500k or more must be processed via Criminal or Civil Judicial forfeiture.
Civil Judicial Forfeiture: The reason that cryptocurrency forfeitures are processed via the Civil Judicial process is because a legal action is brought against property that was derived from, or used to commit an offense. No criminal conviction is required, it requires a lower burden of proof and allows the government to reach more property than criminal forfeitures, such as property owned by criminals located outside the U.S. Because Civil judicial forfeiture requires the involvement of the US Attorneys’ Office, it can be difficult to convince them to proceed with prosecution. This is also dependent on the Judicial District and how aggressive they are with prosecuting crypto cases. For example, the District of Massachusetts has been in the news recently with several large-scale disruptions of crypto fraud prosecutions.
Final Thoughts:
In some instances, the investigative agency may be interested in pursuing the case, but may not be able to get a conviction. Need more trained investigators and agencies willing to invest in prioritizing crypto investigations. Future legislation and modification of CAFRA (Civil Asset Forfeiture Reform Act) could make these investigations less complicated to pursue. It’s been suggested previously that law enforcement could contract with private companies that conduct forensic blockchain analysis to support prosecution and to lessen the burden of in-house staff.
Previously, a panelist at The Digital Chamber spoke about how they were brainstorming ways to “enjoin” assets with the cooperation of VASPS [Virtual Asset Service Providers] as part of investigations to aid law enforcement. Additionally, in 2022, the [United States] Attorney General presented a 61-page report citing the intention to lift the $500,000 cap for cryptocurrency and other digital assets to allow them to be processed through Administrative Forfeiture. To date, I do not think this has been implemented. Also, the US Treasury Department submitted a plan to tackle illicit digital currency investigations.
Right now, as investigators we are doing what we can to educate the public to prevent more [scam] victims. I hope this explanation provides insight into the complicated process of recovering [scam] victims’ assets.
References:
(1) The Role of Law Enforcement in Detecting, Investigating, and Prosecuting Criminal Activity Related to Digital Assets, (Pg. 36) https://www.justice.gov/ag/file/1557146/dl?inline
(2) The Digital Chamber https://digitalchamber.org
(3) DOJ Asset Forfeiture Program https://www.justice.gov/afp
(4) Action Plan to Address Illicit Financing Risks of Digital Assets, https://home.treasury.gov/system/files/136/Digital-Asset-Action-Plan.pdf
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Important Information for New Scam Victims
Please visit www.ScamVictimsSupport.org – a SCARS Website for New Scam Victims & Sextortion Victims
SCARS Institute now offers a free recovery program at www.SCARSeducation.org
Please visit www.ScamPsychology.org – to more fully understand the psychological concepts involved in scams and scam victim recovery
If you are looking for local trauma counselors, please visit counseling.AgainstScams.org
If you need to speak with someone now, you can dial 988 or find phone numbers for crisis hotlines all around the world here: www.opencounseling.com/suicide-hotlines
Statement About Victim Blaming
Some of our articles discuss various aspects of victims. This is both about better understanding victims (the science of victimology) and their behaviors and psychology. This helps us to educate victims/survivors about why these crimes happened and not to blame themselves, better develop recovery programs, and help victims avoid scams in the future. At times, this may sound like blaming the victim, but it does not blame scam victims; we are simply explaining the hows and whys of the experience victims have.
These articles, about the Psychology of Scams or Victim Psychology – meaning that all humans have psychological or cognitive characteristics in common that can either be exploited or work against us – help us all to understand the unique challenges victims face before, during, and after scams, fraud, or cybercrimes. These sometimes talk about some of the vulnerabilities the scammers exploit. Victims rarely have control of them or are even aware of them, until something like a scam happens, and then they can learn how their mind works and how to overcome these mechanisms.
Articles like these help victims and others understand these processes and how to help prevent them from being exploited again or to help them recover more easily by understanding their post-scam behaviors. Learn more about the Psychology of Scams at www.ScamPsychology.org
SCARS INSTITUTE RESOURCES:
IF YOU HAVE BEEN VICTIMIZED BY A SCAM OR CYBERCRIME
♦ If you are a victim of scams, go to www.ScamVictimsSupport.org for real knowledge and help
♦ Enroll in SCARS Scam Survivor’s School now at www.SCARSeducation.org
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♦ Learn about the Psychology of Scams at www.ScamPsychology.org
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♦ Scam Survivor’s Stories: www.ScamSurvivorStories.org
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Psychology Disclaimer:
All articles about psychology and the human brain on this website are for information & education only
The information provided in this and other SCARS articles are intended for educational and self-help purposes only and should not be construed as a substitute for professional therapy or counseling.
Note about Mindfulness: Mindfulness practices have the potential to create psychological distress for some individuals. Please consult a mental health professional or experienced meditation instructor for guidance should you encounter difficulties.
While any self-help techniques outlined herein may be beneficial for scam victims seeking to recover from their experience and move towards recovery, it is important to consult with a qualified mental health professional before initiating any course of action. Each individual’s experience and needs are unique, and what works for one person may not be suitable for another.
Additionally, any approach may not be appropriate for individuals with certain pre-existing mental health conditions or trauma histories. It is advisable to seek guidance from a licensed therapist or counselor who can provide personalized support, guidance, and treatment tailored to your specific needs.
If you are experiencing significant distress or emotional difficulties related to a scam or other traumatic event, please consult your doctor or mental health provider for appropriate care and support.
Also read our SCARS Institute Statement about Professional Care for Scam Victims – click here
If you are in crisis, feeling desperate, or in despair, please call 988 or your local crisis hotline.
More ScamsNOW.com Articles
Vulnerability to Scams Caused by Past Relationships is Like a River Running through Your Life Cutting Channels – 2025
Hate for Scammers and Criminals Feels So Good But is So Bad for Scam Victims – 2025
Overton’s Window – a Commentary on the Acceptance of Criminality and Scams in our Society and World – 2025
Acknowledging The Harm Done – 2025
Beginning Again and Scam Victim Recovery -2025
The Prodigal Son or Daughter – Returning ‘Home’ After the Scam – 2025
Nirvana and the Path to Letting Go of Suffering – 2025
Metanoia – The Transformation for Traumatized Scam Victims – 2025
A Question of Trust
At the SCARS Institute, we invite you to do your own research on the topics we speak about and publish. Our team investigates the subject being discussed, especially when it comes to understanding the scam victims-survivors’ experience. You can do Google searches, but in many cases, you will have to wade through scientific papers and studies. However, remember that biases and perspectives matter and influence the outcome. Regardless, we encourage you to explore these topics as thoroughly as you can for your own awareness.
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