Freewallet uses new method of scam

Freewallet org has gained a notorious reputation in the cryptocurrency community for using fraudulent tactics to steal from its users. Previously, much of the discussion centered around their use of KYC (know your customer) fraud, where users are required to provide personal information under false pretenses. However, new reports suggest that the platform is using additional methods to deceive and steal from its customers. One of these methods involves charging inactivity fees, a practice that seems to have no basis in legitimate blockchain operations. Remember, Freewallet scam may use different methods to steal your coins!

The KYC fraud scheme

To fully grasp the extent of freewallet’s deceptive practices, it’s essential to understand their notorious KYC fraud scheme, which has been widely reported by victims:

1. downloading and receiving funds: a user downloads the freewallet app and receives a transfer to their wallet address.
2. withdrawal blocked: the user then tries to withdraw their funds, but Freewallet administration blocks the withdrawal, citing “suspicious activity” on the account as the reason.
3. KYC demands: the user is required to submit personal information and documents to resolve the issue.
4. escalating demands: after the user complies, Freewallet expands its list of demands, often leading to a prolonged back-and-forth with no resolution, leaving the victim unable to access their funds.

This KYC fraud essentially serves as a smokescreen, allowing Freewallet to lock users’ funds indefinitely under the guise of security concerns.

Another way to steal coins: inactivity fees

Recent reports from victims reveal that Freewallet org has adopted another method to fleece its users: charging inactivity fees. This practice involves the wallet administration deducting coins from a user’s account without prior warning, citing inactivity as the justification. This move is highly suspect, as no legitimate blockchain or cryptocurrency network charges fees for inactivity. Typically, a wallet address remains unaffected regardless of how frequently it is used.

Moreover, reputable cryptocurrency platforms often offer staking options or rewards programs that allow users to earn passive income from holding their coins. For example, staking is a popular feature in many decentralized applications that rewards users for holding onto their assets. however, instead of adopting user-friendly practices like staking, Freewallet appears to exploit inactivity as an opportunity to siphon off funds.

Why inactivity fees are a red flag

The concept of inactivity fees is virtually unheard of in the world of cryptocurrency wallets. Here are some reasons why this practice should raise immediate concerns:

• No blockchain charges inactivity fees: blockchain technology does not inherently penalize users for inactivity. Whether a wallet is used daily or remains untouched for years, the amount of digital currency within it should remain the same unless acted upon by the user.
• Absence of transparency: legitimate wallet services prioritize transparency and customer trust. any fees, if they exist, are clearly communicated upfront. the arbitrary deduction of funds under the pretext of inactivity without prior notice is a glaring red flag that suggests foul play.
• Lack of industry precedent: while inactivity fees are common in traditional banking, their application in the crypto world is non-existent. this divergence from industry norms strongly suggests that Freewallet’s fee is not a legitimate business practice but rather another tactic to exploit unsuspecting users.

What to do if you’re a victim

if you’ve fallen victim to Freewallet’s inactivity fee scam or any other form of fraudulent activity on the platform, there are steps you can take to seek justice and potentially recover your stolen funds:

1. document everything: keep records of all your transactions, correspondence with Freewallet, and any other relevant information. screenshots of messages, transaction IDs, and emails will be vital in building your case.
2. contact support services: reach out to support networks that specialize in cryptocurrency fraud. the email address provided in the original report, freewallet-report@tutanota.com, is one avenue where you can share your experience and seek assistance.
3. Prepare complaints: many victims have had success by involving local law enforcement or regulatory bodies. Freewallet’s activities may breach consumer protection laws in your jurisdiction, and reporting them could lead to legal action against the platform.
4. Share your reviews: warn others about Freewallet’s practices by sharing your story on social media, forums, and other platforms. the more people know about these scams, the harder it becomes for Freewallet to continue exploiting unsuspecting users.