May 14, 2021

Look out for these Bitcoin Scams

The introduction of Bitcoin took the investors and the scammers by surprise. Almost 10 years from today, the emergence of cryptocurrency into the world of finance proved to be a parallel breeding ground for investors and cybercriminals alike. With the increase in the success rate of Bitcoin, the number of scams also increased. This caused people to opt-out of bitcoin and invest in alternative options thus causing the price to fall.

The recent years showed a shift of Bitcoin into the mainstream and therefore, attracting a majority of investors. This transformation leads to the scammers turning to cryptocurrency wallets. Soon, cryptocurrency wallet scams became a new trend. One of the common methods used by these cybercriminals to steal the personal information of a user for their cryptocurrency wallets is known as phishing. However, quite contrary to popular belief, some prefer the scam happening in the system. The reason is that this helps in finding loopholes in the system.

The Wallet Scams

In the past years, cybercriminals have shifted their preference from cryptocurrency exchanges to cryptocurrency wallets. One such cryptocurrency wallet scam that hit the headlines happened in the month of June 2020. The cybercriminals stole the email addresses of over a million customers from the database of a France-based crypto wallet company called Ledger. These scammers further stole the personal details of 9000+ customers and published the email addresses of 242000 customers of a website. Poloniex, another crypto wallet company suffered a similar case of a breach in 2019 and had to request its entire people to change their passwords.

The Social Media Scams

Social media has become a very powerful tool in society. The increased engagement leads to the social media platforms becoming a powerful force to endorse or increase the visibility of a certain commodity or trend.
Bitcoin too has an increased presence on social media that the scammers make use of. These cybercriminals hack into the profiles of eminent personalities and ask for money from their followers. They also offer high returns to lure more people. Till now, the scammers have hacked into major profiles such as that of Elon Musk, Bill Gates, Warren Buffet, and Floyd Mayweather Jr.

The Social Engineering Scams

Social Engineering Scams make use of the psychological quotient of the human mind. The scammers manipulate and trick the user into giving them the personal information and passwords to the user’s accounts. Such types of scams prove to be successful because the user does not get much time to think about them.

The ICO Scams

ICO scams or Initial Coin Offering scams are a common method in cryptocurrency scams. In such a case, the scammers create a fake ICO website and ask people to deposit their coins on this website. People often fall for such scams due to the striking similarity of the scam website to an ICO website.

The DeFi Scams

DeFi, which stands for Decentralized Finance works towards removing the financial gatekeepers in transactions. However, this soon became popular among scammers. The scammers steal bitcoin from smart contracts once the contract expires thus creating losses for the investors.

If you have been or are a victim of any of these scams, report it with us through this complaint form. We will get back to you at the earliest with the best possible solution to claim your money back. Till then, stay aware and keep reading!