Watch Out For These 10 Bitcoin Scams


Bitcoin, which is distinguished from other financial assets with its digital presence, has been in demand from many segments, including corporate companies, for 12 years. But as with everything else, Bitcoin has gone through some tough road. In addition to price decreases, the crypto money, which is also used by hackers from time to time, was also used in illegal activities. Thousands of dollars worth of stolen cryptocurrencies did not bother users.

Although crypto currency users rely on the applications and exchanges they use, unfortunately hackers can seize large amounts of money by targeting these platforms and investors. So, as a crypto investor, can you protect yourself from the most common scams? Don’t worry, the answer to this question is a resounding “Yes”. You will soon learn about the most preferred fraud methods of hackers and how to protect them.

Here are 10 Bitcoin scams and protection methods to watch out for.

Phishing Fraud (Phishing)

Phishing scam is perhaps the most common type and is also known as phishing. Phishing ranging from social media to email fraud is a very common scam in the Bitcoin market. In these types of scams, you are usually asked to download a virus-infected file or click on a link prepared to steal your information.

“You have to log in to the system again due to an update in the system. Please click the link and update your information. ”,“ Your password will expire within 1 day. Please change your password. ” or send messages via social media. In a phishing attack in the US in 2019, fraudsters seized nearly $ 360,000 and were sentenced to 12 months in prison.

How are you protected?

The best way to avoid being scammed through phishing on social media is to thoroughly check who has sent messages to you. You should pay attention to whether they are verified and thoroughly check their reliability. For example, an account with 10 thousand followers may be reassuring to you, but you should stay away from accounts with this fake user base with a maximum number of photo / post likes of 5-10. Scammers often buy followers and try to get people to believe they are an original account.

When it comes to avoiding phishing email scams, you first need to check if the incoming emails are from the original source. You should not rely on spammy emails that contain meaningless letters and numbers (such as “[email protected] [.] Co”). If there are any situations in between, you should reach the actual place where the e-mail came and make a confirmation.

Malicious Software

Malware is highly dangerous software capable of intercepting all of your personal data. Fraudsters who can gain access to your computer through an application can take over all your money. They can access your computer or phone with fraudulent wallet applications (such as Ledger wallet fraud) or updates with malware.

How are you protected?

To protect yourself from malware, you must be very careful about your computer and mobile device security. You can use anti-virus software that is effective against virus-infected software. You should never click on dangerous-looking links and be alert for suspicious links.

When downloading software from app stores or websites, be sure to check if the site is reliable or genuine. Finally, make sure that the operating system of the device you are using is up to date.

Ransomware (Ransomware)

Ransomware is also actually a type of malware. These attacks can target highly critical companies, organizations or individuals. In this type of software, victims are asked to pay a high fee. Otherwise, it is said that allegedly obtained information about that person or institution will be leaked and threatened. A close example is the ransom attack of the Israeli insurance company. The scammers said they would return the company data for 50 BTC.

How are you protected?

Make sure to use a good anti-virus program and always keep your operating system up to date. Do not click and report links and emails that seem suspicious. If you see fancy, unrealistic pop-up ads, never click. Never open some extensions attached to emails such as .exe, .scr, .rip.

Fake Cryptocurrency Exchanges

Scammers can scam investors by imitating legitimate cryptocurrency exchanges (usually in the form of mobile apps). However, people who open fake exchanges can also be seen through desktop apps or websites. Although it is sometimes very difficult to distinguish between the original and the fake, fake exchanges can appear in small details. We can give Uniswap as the most recent example of this. Uniswap’s fake application was recently launched on Google Play and some people’s money was stolen from the application.

How are you protected?

To be protected from such applications, you should check the authenticity of the site or application by looking at its URL, rating, comments, activities on platforms such as Telegram. If you see an advertisement about the stock market, be sure to confirm its authenticity from the original source. If you receive an e-mail asking you to register on the exchange or change your password, report it dishonestly.

Fake Sweepstakes (Giveaway)

Those who scam through fake sweepstakes say they will offer you a free service for a small fee and ask you to send money to a Bitcoin address. Usually they promise to give at least two or three times the amount you send. “Send 0.1 BTC to earn 1 BTC!” They target investors with misleading titles such as. Sometimes they may not only ask you to send money to a specific address, but also to enter your personal information (such as password). This type of fraud is mostly seen on social media platforms.

How are you protected?

First of all, remember that you are not expected to share your personal information such as identity information, phone, etc. in any legal drawing. If you encounter a platform that asks you to participate in the lottery by waiting for your return, report it and do not take any action.

Ponzi and the chain of happiness

Ponzi and pyramid schemes are fairly old scams. To understand the Ponzi scheme, we can give the example of Farm Bank. In the crypto money market, OneCoin is one of the best examples of this fraud. In addition, we can cite the $ 4.2 billion scandal that China seized in PlusToken fraud as an example.

In the happiness chain, users are asked to bring new members to the platform and payment is promised for each member, but these payments are not made.

How are you protected?

Before you rely on any new money or tokens created within the Bitcoin or other cryptocurrency market, look at what they demand from you. If you are only included in a formation formed by a certain cryptocurrency community, you are probably dealing with ponzi or a chain of happiness. If you are asked to bring in members or pay to earn a higher sum, walk away directly.

Blackmail (Blackmail)

Fraudsters can seize sensitive information about you or the company you belong to / own and sell that information back to you in exchange for paying a certain amount of Bitcoin. This is called blackmail. The scammers’ goal here is to force you to pay the requested payment on time. We have seen the news of a person named Nigel Wright, who blackmailed 150 thousand pounds worth of Bitcoin in recent months.

How are you protected?

To prevent fraudsters from blackmailing you, you should be careful in places that contain sensitive information, such as your email, online login information, and websites where you are registered. You should not share your password with anyone or save it in password keeping applications that you do not trust. You should use two-factor protection and never open incoming spam emails. However, do not forget to block spammers by sending messages on social media.

Fake ICOs

Fake ICOs are also a huge problem. With Initial Coin Offering (used for cryptocurrency supply), we’ve witnessed people who have captured millions of dollars. For example, ICO Pincoin and iFan, which stole $ 660 million, Plexcoin, which stole $ 15 million, and Bitcard, which seized $ 5 million. Fake ICOs ask users to deposit Bitcoin in a wallet. This type of ICO promises users fancy messages, a professional image, and unrealistically positive returns.

How are you protected?

If you come across an ICO that you like and are thinking of investing in, you should be sure of its authenticity and reliability. For this, you should examine the website, its founder, the investors of the platform and confirm information from several places. If necessary, send an e-mail, call, comment on social media. The more information you can gather, the better.

Cloud Mining Scam

In cloud mining scams, a mining company asks you to deposit Bitcoin and it is said that you will receive a share of the hash power of the platform. While paying users in the early days, they want to make lifetime contracts or agreements after a while. When the company collects enough money, it becomes inaccessible.

In 2019, BitClub Network Bitcoin mining company demanded users to invest in the company and declared that they would give a share of the total revenue in return. The company defrauded users by collecting exactly $ 722 million.

How are you protected?

If you want to trade with bitcoin mining companies, check out if they are real companies. Take a detailed look at their founders, websites and social media accounts. Call or email the company if necessary. Check out any comments on the company and listen to users’ voices.


Please enter your comment!
Please enter your name here