Bitcoin Scams Red Flags & Tips to Avoid it

Bitcoin Scams

Do you want to know about the latest Bitcoin & Crypto coins scams? As we are already fascinated by people’s stories of becoming millionaires through investing in cryptocurrency. So it’s natural to wish to get involved in what seems like an as amazing asset. But as the popularity of these currencies continues to rush, so as scams. Crypto coins crime has had a record-breaking year, with a report finding scammers took around $14 billion worth of crypto.

However, Scammers are always finding new ways to take people’s money, and the boom in crypto coins over the past year has created many fraud chances. Although, Cryptocurrency transactions are irretrievable; if you send Bitcoins to a third party, you cannot get back the coins or stop payment. So, it’s essential to know a little bit of knowledge to secure yourself against scams, be they Bitcoins or Phishing attempts.

Read on further to know more about common Bitcoins scams and how to avoid them.

Most Common Bitcoin Scams of 2022

Most Common Bitcoin Scams
Most Common Bitcoin Scams

You may be heard about the bitcoin or cyberattack scams. But if you are new to the world of crypto, you must be aware of the threats. Here are the bitcoin red flags that you should know before investing.

1.      Bitcoin Blackmail Scams

Scammers will eventually act to show the tax office to bully victims and represent themselves as hackers with some incriminating facts. However, the common variation of this scam comes in the form of an unnecessary email, where the person claims to be a hacker who accessed your system. They will also threaten you that they have some evidence or taken over your cam to capture you doing something awkward or something other people don’t know about you.

However, these scams email promise to send you the evidence to all of your email or contact unless you send them some Bitcoins. Also, instruct you about how to buy and where to send the Bitcoins. But it’s all a lie, these blackmailers don’t have anything, and nothing will happen whether or not you send payment. This is a pure scam, where the blackmailers hope that by sending threatening emails scare people into sending them coins.

Tip: to avoid these blackmails, search online to see if other people are getting the same email or try to use VPNs to browse privately.

2.      Phishing Scams

You may all be familiar with this scam, as it has been commonly used to target people from major banks. The Phishing scam occurs when you get an unwanted email that looks like it’s from the bank or your crypto exchange.

However, the email has a link that takes you to a site that looks almost the same as the exchange or wallet you often use but is actually a scam site. When you log in to that unofficial page, the scammers got everything they need to get into your account and steal your funds.

Moreover, Phishing websites may also emerge as sponsored results on search pages or in smartphone app marketplaces. Be cautious not to install a fake app or tap sponsored links to a fake site.

Tip: Double-check the site to ensure you are visiting the authentic site. Don’t ever tap on any links that are mailed to you & never reveal your pin key.

3.      Bitcoin Investment Schemes

In bitcoin investment schemes, imposters contact investors claiming to be “investment managers.” As part of the scheme, the so-called manager claims to have made millions by investing in Cryptocoins and promises they will make money with your investments.

Now, they will ask you for an upfront fee; despite making money, they will take your upfront fees. The so-called manager scammers also appeal for your personal details, claiming it’s for transferring or depositing the amount and access to your crypto wallet.

The other kind of investment scam involves using false celebrity endorsements. Imposters take real images and compel them on fake accounts, ads, or articles to make it emerge as though the celebrity is endorsing a huge financial gain from the investment. The basis of these claims is legitimate, using a reputable firm name with a professional website &v logos. Whatever your role is, they claim to increase your investment if you transfer your Bitcoins to them. Though, the promotion is fake.

Tip: be careful of sites promising high returns, research the company carefully and only send the Bitcoins to trusted parties. However, if you come across these scams, contact the exchange commission & securities, the FTA, or your region’s securities regulator to get help.

4.      Fake Crypto Exchanges & Wallets

Imposters may entice investors with promises of great crypto coins exchange or maybe with some extra Bitcoins. But in fact, there is no exchange & the investor doesn’t know it’s fake until after they lose their deposit. So always be aware of such scams and stick to knows crypto exchange markets like Cash app, coin base, and to avoid an unknown market.

However, these fake exchanges may scam users by giving tremendously competitive market prices that force them into thinking with quick access to cheap Bitcoins. But always be sure of a market while selling or buying bitcoin.

5.      Bitcoins Giveaway Scams

The type of scam common to many large sites and social media apps is a giveaway scam. Here, the imposters will impersonate a famous celebrity or other notable person & announce that they are giving away a lot of Bitcoins for free, as long as you send them crypto coins first.

However, scammers usually promise to send back double what you send them. After seeing all the free giveaway news, people rushed to send money to the scammers. Although, multiple frauds are running fake Bitcoins giveaways on different social media platforms. They will show you fake Screenshots from organizations or celebrities to promote the fake giveaway.

Tip: giveaway on social media is always a scam, so always check the username of the suspected scam account. Also, check the provided crypto coins address using a blockchain explorer.Always report fraud & scams when you see them.

Tips to Avoid Bitcoin Scams

Most Common Bitcoin Scams
Most Common Bitcoin Scams

Scammers are finding new ways to fool you using crypto coins. So, to save yourself from crypto and Bitcoins scams, here are some things you must know before investing in such scams.

  • Insist payment in cryptocurrency- however, no authentic organization will demand you send crypto coins in advance. So always be cautious, and do not send anything.
  • Guarantee Profits or Big Returns- don’t trust people who promise you quick profits in the crypto markets.
  • Be careful if you see any grammatical or misspelling errors in emails or any other post.
  • Scammers always manipulate or blackmail users, so do not get into their trap and report them.
  • If you detect any celebrity endorsing giveaways or anything, double-check them, as these are scams.
  • In last, if you meet anyone on a dating site and they force you to send them Bitcoins, don’t fall for them. It’s a scam.

Final Words

Always be cautious while investing money in cryptocurrency, as many scams are running to entice people to invest,  so they can steal your funds. I have already mentioned some common red flags, so be aware of them. Hope, this article will be beneficial for you. Let us know if you’ve ever experienced any Bitcoin scams.

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