How to Spot the Most Common Bitcoin Scams

Bitcoin Scams

There is no lack of cryptocurrency scams, and people should be aware of this fact. For example, some of the most common scams include blackmail, fake exchanges, fake giveaways, copy-paste-malware, social media phishing, Ponzi, and pyramid schemes. In addition, these might also be phishing emails as well as ransomware. People should learn more about Bitcoin scams to avoid them.

It is worth noting that it makes sense to understand how scammers work and learn how to identify red flags. Unfortunately, there are many Bitcoin scams, but let’s have a look at some of the most common scams. This way, it will be easier to avoid them.

Let’s start with the blackmail. People should keep in mind that blackmail is a well-known method used by scammers to threaten others with the release of sensitive information. They want to earn money by this method. Interestingly, the reimbursement quite often comes in the form of cryptocurrency, most notably Bitcoin.

As a reminder, blackmail works by scammers either finding or fabricating sensitive information about the person. This way, they want to force this person to send them Bitcoin or other forms of money. Importantly, the best way to protect against scammers is to be careful when it comes to selecting login credentials. Moreover, it also makes sense to use two-factor authentication whenever possible.

Bitcoin and fake exchanges

Let’s move to another common Bitcoin scams, fake exchanges. Importantly, as the name suggests, fake exchanges are fraudulent copies of legitimate crypto exchanges. People should take into account that, in many cases, these scams will be presented as mobile apps, but a person may also find them as desktop applications or fake websites. Also, users have to be careful because some fake exchanges are very similar to the original ones. Moreover, they may look legitimate at first glance, but their goal is to steal money that belongs to users.

It is worth noting that, in many cases, these fake exchanges will attract crypto traders and investors by offering free cryptocurrencies. Furthermore, such exchanges may also offer competitive prices, low exchange fees, and even gifts.

Interestingly, to avoid being scammed on a fake exchange, a person should bookmark the real URL and always-double check it before logging in. Also, when it comes to mobile apps, a person should verify the developer information, the number of downloads, reviews, and comments.

Fake giveaways and social media phishing

Importantly, fake giveaways are used to scam a person out of his or her cryptocurrencies by offering something for free in exchange for a small deposit. In many cases, scammers will ask users to send funds to a Bitcoin address first so the person can receive more Bitcoins in return. People should take into consideration that, if this person decides to send Bitocin, this user won’t receive anything. Moreover, this person will never see his or her funds again.

This is not the end of the story, as there are many variants of fake giveaway scams. Interestingly,  instead of the most famous cryptocurrency, some scams will ask for other cryptocurrencies, like ETH, XRP, etc. Moreover, in some cases, they may ask for private keys or other sensitive information.

People should take into account that the best way to avoid fake giveaway scams is to never participate in any kind of giveaway.

Let’s have a look at social media phishing. Importantly, social media phishing is a common Bitcoin scam that, like fake giveaways, a person will most likely find such scams on social media. For example, scammers will create an account that looks like someone with a high level of authority in the crypto space. Notably, scammers will offer fake giveaways via tweets or by direct chat messages.

To sum up, there are many types of cryptocurrency scams. As can be seen from the information stated above, scammers are using different methods. People should pay attention to details. This way, it will be easier to protect their assets.

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  1. mc abert January 12, 2021
  2. Srikanth Jatharakonda December 9, 2020

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