Best Ways To Avoid Bitcoin Scam: Since the genesis of Bitcoin and cryptocurrencies in general, reports of a number of scams involving millions of dollars have surfaced. Fake websites, blackmail, fake mobile apps, email scams, giveaway scams, and social media phishing are a few of the most popular Bitcoin frauds.
Over 86 incidents totaling major scams were documented in 2020, and the perpetrators made off with cryptocurrency valued at over $500 million. Compared to 2018 and 2019, there were a lot more cryptocurrency scams reported in 2020.
With cryptocurrencies valued over $14 billion stolen in 2021, the number climbed rapidly. New scams are emerging regularly as people become more aware of them, and if you’re not vigilant, you might lose all of your savings to these con artists.
The article will go over several typical Bitcoin scams and five various strategies to avoid them. It may be nearly impossible to recover your stolen assets or find scammers if these con artists are successful in tricking you into making errors when executing a Bitcoin transaction.
It could be crucial to be aware that there have been numerous successful scam attempts on other crypto assets in addition to Bitcoin. Scams involving NFTs are also increasing. In general, when conducting crypto transactions, you should be extremely cautious. Let’s begin straight away.
Six (6) Common Bitcoin Scams
Best Ways To Avoid Bitcoin Scam: Scams involving bitcoin and other cryptocurrencies follow a similar pattern: first, they’ll mislead you into giving them access to your wallet by giving them your private data, such as security codes or private keys. Following that, fraudsters transfer or take cryptocurrency right out of your wallet.
Some of the common Bitcoin scams include:
- Fake websites
- Fake mobile apps
- Email scams
- Giveaway scams
- Social media phishing
1. Fake Websites
Best Ways To Avoid Bitcoin Scam: As a novice cryptocurrency user, you could find it challenging to distinguish between legitimate and fraudulent websites. Many of these websites are created to look very authentic, and occasionally they even copy other websites entirely.
They offer you enormous returns on your investments, as well as in cryptocurrency mining. Although investing may be simple, it will be next to impossible to retrieve your profits because the scammers will have taken all of your money and shut down the website.
The main goal of this kind of con is to get as much money as possible from gullible people before shutting down, rinsing, and starting over with a different domain.
Best Ways To Avoid Bitcoin Scam: Although it is not very common, blackmailing with cryptocurrencies has been documented in the past. This kind of con involves the fabrication of false information on you and a threat to release it if you don’t comply by providing the con artists Bitcoin payments.
They choose cryptocurrency payments because they may stay anonymous during the transaction. When you inadvertently use any of their bogus items or register for one of their websites, they may obtain your personal information, such as your email.
You can be pressured into sending them any amount of Bitcoin they request if you fall victim to this kind of scam.
3. Fake Mobile Apps
Best Ways To Avoid Bitcoin Scam: This fraud is virtually identical to the phony website scam, but instead of using the web, they employ mobile applications. This has grown to be a rather common technique for defrauding people of their cryptocurrency possessions.
You are duped into thinking you are using the genuine mobile app by developing the app so closely that it mimics the original. In order to access your digital wallet, this fraud attempts to deceive you into disclosing your crypto keys.
Any Bitcoin and other cryptocurrencies you have saved up are yours to lose once they have access to and control over your crypto wallet.
This kind of scam affected the prominent bitcoin exchange app Poloniex. More than 10,000 users were tricked into downloading the fraudulent Poloniex app by the con artists, who may have already jeopardized their savings.
4. Email scams
Best Ways To Avoid Bitcoin Scam: Emails remain one of the greatest and simplest methods for reaching out to new clients or customers in any industry today. Scammers impersonate trusted and trustworthy sources when sending false emails to victims.
The goal of this form of email is to create a sense of urgency, tempting you to decide quickly to transfer them cryptocurrency payments. They might send a limited-time email on a product or investment, for instance.
If you don’t do your homework and pay attention, you might send them Bitcoin or other cryptocurrencies. There are additional avenues for scammers to acquire your cryptocurrency now thanks to the launch and growth of crypto-based investments like NFTs (Non-fungible tokens) and ICOs (initial coin offerings).
5. Giveaway scams
Best Ways To Avoid Bitcoin Scam: Everyone enjoys a great freebie. It’s always pleasant to receive something worthwhile for no charge at all. You encounter these scams in the form of advertisements on social media sites like YouTube, Twitter, Facebook, Instagram, and other platforms.
With a limited offer time stamp and a promise to double or equal the amount of bitcoin delivered to them, they create urgency in this offer once more. You perceive them as a once-in-a-lifetime chance.
Since there have been so many legitimate giveaways on social media as well, it could be challenging to identify this scam; for this reason, it is always advisable to conduct thorough study before you participate.
6. Social media phishing
Best Ways To Avoid Bitcoin Scam: Similar to the giveaway scams, this is a typical Bitcoin scam that you will most likely encounter on social media. Scammers set up social media profiles to pose as well-known figures in the cryptocurrency industry.
Next, they create fictitious giveaways and distribute them via tweets or direct messages. If you take part in whatever they are advertising on those networks, they give you some cryptocurrency.
Elon Musk impersonators conned consumers out of almost $2 million in cryptocurrency in 2021. Other instances of impersonating Ethereum co-founder Vitalik Buterin have been documented, particularly in light of the announcement and successful completion of the Ethereum Merge.
Five (5) Ways to Avoid Bitcoin Scams
Best Ways To Avoid Bitcoin Scam: Even though bitcoin scams seem to be on the rise every day, there are steps you can do to be aware of them and learn how to prevent them.
Below are some of the ways you can avoid Bitcoin scams:
- Do a proper research
- Protect your digital wallet private keys
- Avoid social media ads and Google ads
- Protect your business
- Ignore cold emails
1. Do a proper research
Best Ways To Avoid Bitcoin Scam: This specific piece of advice should never be understated. When you receive offers via emails or direct messages, it is appropriate and advised to thoroughly investigate the alleged platform or sender.
Instead of committing money right immediately, spend some time doing adequate research. whether they have a social media account, check to see whether it is legitimate by searching for it on other social media sites.
Make if there is a legitimate offer from that project by conducting a google search if they approach you with a known name or familiar website domains.
2. Protect your digital wallet private keys
Best Ways To Avoid Bitcoin Scam: Your private key gives you access to your digital wallet, as you are already aware. If scammers get their hands on this, you’ll probably lose most or all of your cryptocurrency assets.
You should never give anyone else access to your private key. It’s probably a fraud, therefore you should stay away from anyone or anything asking you to transmit your private keys in order to take part in a giveaway or other type of investment.
3. Avoid social media ads and Google ads
Best Ways To Avoid Bitcoin Scam: You can fall victim to several scams thanks to social media marketing and even Google AdWords. Some claim that bogus and impersonating websites bought Google ad campaigns in 2021 to entice cryptocurrency investors to invest in phony prospects.
These con artists eventually succeeded in stealing cryptocurrency valued more than $500,000. Do your study to identify whether crypto platforms are legitimate before you participate, and only interact with adverts from reputable crypto platforms.
4. Protect your business
Best Ways To Avoid Bitcoin Scam: Scammers can imitate your company and trick your clients into paying in Bitcoin for fake goods if your company is not adequately protected. This in turn has the potential to harm or ruin your company’s reputation.
However, you can utilize a variety of corporate imposter elimination tools to safeguard your enterprise. This software notifies you if fraudsters have access to your company. They can assist in identifying and eliminating any impersonation efforts and in stopping online theft.
5. Ignore cold emails
Best Ways To Avoid Bitcoin Scam: A cold email is the first email sent to a recipient in an attempt to capture their attention and reap the rewards in the form of sales or other opportunities.
It is most certainly a scam if you receive a call out of the blue about a chance, such as a crypto investment opportunity, that seems too good to be true. Never utilize links in dubious emails to log into your digital wallet since you could unintentionally grant access to your wallet.
Best Ways To Avoid Bitcoin Scam: Final Thoughts
Best Ways To Avoid Bitcoin Scam: While the use of cryptocurrencies is rising in popularity, it is now crucial to safeguard your personal information and the interests of your companies.
Additionally, it is crucial to properly study products and offers before committing because it is nearly impossible to get your stolen money back from your wallet.
It will be challenging for you to fall victim to these frauds if the preceding guidance is effectively implemented.