You’ll find con artists everywhere where money is involved. Therefore, it is no surprise when skilled con artists come up with different Bitcoin scams with every technological development. While bitcoin-related fraud and scams may be relatively new, many everyday bitcoin-related schemes still rely on tried-and-true methods to succeed.
Almost all forms of fraud, such as phishing schemes and Bitcoin scams, depend on the con artist’s capacity to win over their target’s confidence. They are called “con artists” for a reason—it’s all about manipulating people and persuading them.
Even if you lose money due to a Bitcoin scam, don’t worry. In recent years, some bitcoin scam recovery organizations have developed to help you recover losses from Bitcoin scams.
Most common Bitcoin scams to avoid:
- Blackmail Scams:
When strangers threaten you while demanding for bitcoin, be on the lookout for blackmail tactics. The method where the sender sends an email pretending to have hacked into your computer and to have gained control of it through the remote desktop protocol (RDP), is an often used Blackmail fraud. For instance, the sender claims that a key logger was installed on your computer and that your webcam was used to record actions you wouldn’t want other people to view. Further, the sender gives you two options: sending bitcoin to have the item removed from your inbox or having it sent to your contacts and posted on social media. Scammers carry out this method by using user data such as stolen email lists.
- Fake Exchanges:
Nowadays, a plethora of individuals are trying to purchase bitcoin as it has grown in popularity. Unfortunately, malicious people have taken advantage of this and have put up fake bitcoin exchanges. These fake exchanges attract clients by providing low costs, making them believe that they are getting a great offer with simple, fast, and straightforward access to less expensive bitcoin. Therefore, while buying or selling cryptos, always be careful and choose a trustworthy exchange.
- Free Giveaways:
Scammers will offer free bitcoin or other digital currency in exchange for a small fee or personal data, as they try to take advantage of their victims. However, due to the epidemic nature of how information spreads online, many offers get overly marketed. Therefore, it is advisable to report something that seems similar to a fraud when you come across it, whether it is a fake website or profile on a social networking platform. It will help other people prevent the same fraud.
- Phishing Websites:
There are a plethora of phishing emails and websites out there. Usually, when you click the link in the phishing email, it redirects you to a fake website where your login details are stolen or you’re asked to add malware software. Make sure you are only logging in or downloading the software when you have confidence that the website is reliable. In some cases, sponsored advertisements in the google play store or search engines may lead to phishing websites. Always avoid installing unknown softwares or applications from phishing emails or websites.
- Pump And Dump Schemes:
Never trust anyone who tries to convince you or others to invest, by claiming to be knowledgeable about the price of bitcoin. A pump and dump approach is used when someone wants to sell their assets financially but artificially inflates the price.
How to protect yourself from Bitcoin scams?
Suppose you become a victim of a Bitcoin scam. In that case, there are many steps you can take to ensure your safety. Using strong passwords, encrypting backups, and doing your research before hiring a Bitcoin broker are all crucial self-defense tactics. However, preventing advance fee fraud is the most critical security step. Even if you lost money to Bitcoin scams, you shouldn’t be concerned because there are companies that help defrauded people get their money back from scammers. Here are some quick steps you can take to protect both yourself and your bitcoin.
- Strong Passwords:
Online attacks by bitcoin scammers are more prevalent. These crooks commonly use hacked websites to access your email list and may send you emails asking you to provide them with bitcoins. The attackers will then have access to the bitcoin in the wallet and be able to transfer it to another account. Twitter users have reported wallet theft. Utilizing secure passwords is the most excellent defense.
- Encrypting Your Backups:
To avoid being a target of Bitcoin scams, you must regularly generate secure backups. Aim for at least two or three backups, and be sure to encrypt your backups to protect your data. Encrypting your wallet will prevent unwanted parties from accessing your data and stealing your bitcoins.
Having a backup is crucial, whether the wallet is physical or digital. Ensure your online wallet has private keys and other information, such as your bitcoin address. A theft could prohibit you from receiving your money back if you keep all of your backups in one place. Therefore, the most dependable type of security is having multiple copies of your wallet.
- Do Your Research:
One way to prevent being taken advantage of by a Bitcoin scam artist is to study any broker, platform, or financial asset you choose. A trusted cryptocurrency exchange or online wallet is required for your coin. Examine their standing and testimonials displayed on their website. Fraudsters will exert pressure on their victims to make snap judgments. This is the wrong course of action. Before investing, a product should always be thoroughly studied.
- Avoid The Advance-Fee Scam:
The Bitcoin scam artists deploy sophisticated social engineering techniques and low-volume email campaigns to obtain the victim’s credentials through allegedly fabricated Bitcoin investing platforms. After making a purchase, users are invited to change their passwords, making them provide personal data. To finish MFA, the con artists will want further confidential information, including a phone number for recovery (multi-factor authentication).
Summary:
The enthusiasm and buzz surrounding bitcoin have attracted scammers and hackers. If you lose money due to Bitcoin fraud, don’t worry. Please educate yourself on various bitcoin scams and how they operate, to keep yourself safe. This might persuade some people to believe that buying or selling bitcoin online is often a good deal and not always a fraud. All that is needed to be done is being wary of fraudsters since they frequently use pump and dump strategies to exploit bitcoin users.
It would help if you took all necessary precautions to protect yourself from a Bitcoin scam. These include using safe passwords and encrypting backups. In addition, investigate potential scammers while seeking financial services. However, the most critical security measure is to look out for advance fee fraud.
