Bitcoin scams are as varied as a box of chocolates. Unfortunately, it’s impossible to determine the kind you’ll get.
It’s no wonder that as soon as the technology became available, creative con artists began operating cryptocurrency scams. It’s another terrible case of con artists preying on people’s greed or lack of knowledge. This, however, is hardly the only example.
Also, be aware that there are a bunch of new Bitcoin scam recovery firms that can assist you in recouping your losses.
There are many different types of Bitcoin-related frauds out there right now, and a new one pops up every day. However, the following are the most popular Bitcoin scams to avoid.
Scams involving false Bitcoin investments:
Bitcoin is a subset of a store of wealth that doesn’t exist in any material form and isn’t backed by a democratic government’s complete issuance.
These properties of Bitcoin are very enticing to enthusiasts. Several Bitcoin investors think that the less the government gets involved with money, the better. Others seek to conduct transactions that are difficult for authorities to track.
Unfortunately, fraudsters who set up phony websites claiming to provide new investors the possibility to make a quick profit benefit greatly from these factors.
The overall cost of these Pyramid schemes and Bitcoin frauds can be staggering.
“Many users have noticed being steered to web pages that offer to give them a chance to invest in or deal in Bitcoins but are fraudulent,” according to the FTC. Sites must be trustworthy to appear credible. Utilizing false testimonials and bitcoin lingo and making promises of huge, safe investments are simply lies.
Fraudulent Web Pages:
Many “false” websites that promise possibilities for trading in or mining for Bitcoins attract Bitcoin newbies. Some of these web pages create the impression that your investment is expanding. However, when consumers want to withdraw their apparent winnings, they are asked to send more Bitcoin and never receive anything in return.
Romance scams:
Bitcoin’s spectacular rise has coincided with the widespread use of dating applications that make it simple to meet new people. Unfortunately, while this is great for folks searching for love, it’s also a jackpot for con artists.
In fact, according to the FTC, Bitcoin was perhaps the most popular payment method for dating frauds.
While romantic scams aren’t new, Bitcoin introduces a unique twist: unsuspecting lovers believe they’re joining in on a cryptocurrency investment opportunity.
The scam usually begins with a social-engineering attack, where a con artist forms a relationship with a victim through dating apps like Tinder, Bumble, or Hinge. The scammer takes things forward and asks for their number, taking the conversations to encrypted chat apps like WhatsApp.
As the relationship develops, the scammer manages to convince the victim to buy cryptocurrencies from popular exchanges and then pushes them to download fake crypto trading apps that appear similar to the legit ones.
Bitcoin Blackmail Emails:
In recent years, an abduction scheme in which hackers allegedly steal a person’s webcam has become popular.
The hackers then threaten to publish unpleasant photos and videos taken through the webcam unless an amount of BTC is swiftly transacted to them. This type of communication can be frightening, but don’t worry — the hackers aren’t speaking the truth.
They might have easily tightened up the computer network and demanded a ransom if they could gain access to a webcam.
How to Identify a Bitcoin Scam?
It is easy to lose sound judgment when you think you have found the one or if you are being coerced into doing something. One can end up losing the ability to reason in such situations. Hence, keep some rules in mind to steer clear of fraud.
Don’t fall for the hype
“Guaranteed returns” are not a thing when it comes to investments, especially when talking about cryptocurrency. If they claim it to be, it is a scam. There are no legitimate investments that will double your money in a week or month, not even a year. Do not believe in the “multiplied” phrase, or your money will get multiplied by 0.
Don’t fall for the “Bitcoin” glam
Bitcoin dramatically rose to unimaginable heights thanks to genuine investors who believed they could sell it to someone else for more at a future date, making crypto a highly speculative investment. Ignore “investment opportunities” claiming to help you get in on special deals involving bitcoin.
Bitcoin obsession
If you have met someone on a dating app and they are hellbent on getting you to invest in Bitcoin, things are fishy. Do not give in to the demands of instant crypto payments. If you are being asked to adopt Bitcoin in some form or other, do not trust them.
If you have been targeted by a crypto scam, file a report immediately.
Conclusion
As we all know, as technology evolves, so do the Bitcoin scams. So, before stepping into the volatile industry, be aware of such scams. Also, some financial scam recovery firms help in recovering our losses.
Whatever the fraud, it is always a good idea to backtrack and pay great attention when working with Bitcoin.
