Bitcoin Scams: How You Can Avoid Them

bitcoin scams

One of the main features of Bitcoin is that each cryptocurrency holder is responsible for his own finances. No one can dictate to a Bitcoin owner where to spend the money or who to send it to. There is no censorship, only complete financial freedom. However, there is a price to pay for everything. If you lose your Bitcoins by sending them to someone by mistake or if they are stolen, there is no way to get them back – the funds will be lost forever. That is why Bitcoin has become a haven for various scammers. So the topic of Bitcoin Scams: How You Can Avoid Them becomes relevant.

Cybercriminals are becoming more and more skillful and find new ways and solutions to steal honestly earned bitcoins right out from under your nose. Those people who have been using cryptocurrencies for more than a year usually rarely fall victim to scammers. Such scammers aim at new users, who can be easily tricked by promising quick capital growth in a short period of time.

Ransomware 

One of the most popular and lucrative methods of fraud is the use of a malicious ransomware hacker program. Ransomware is by no means a new way to steal, but Bitcoin has made them particularly popular among hackers because of the high efficiency of its decentralized payment system. A ransomware is essentially a virus that encrypts part or all of the files on a computer. The program then offers the PC owner to pay a certain ransom, after which the files are supposedly decrypted. 

Fake wallets 

This method is not as popular, but quite a few users have already fallen victim to it. Fake wallets are websites or mobile applications that look just like a real wallet (until they have a chance to steal your coins). These wallets usually use the logos and names of existing wallets to trick users. Some fake wallets have even appeared in the App Store, having successfully passed its verification procedure. Because of such machinations, both the real wallets, which name ends up being tarnished by the scam, and Bitcoin itself suffer.

Phishing 

Phishing is a widespread method of information theft based on social engineering. There are different variants of its implementation, most often email and fake websites are used for this purpose. Fraudsters try to force the victim to share their bitcoin information with them, for example, asking for the login and password to an online wallet. Often such requests come in emails that look like an official letter or with domain names that look a lot like a real website address.

Pyramid schemes 

Yes, there are plenty of pyramid schemes in bitcoin as well. In such a scheme, people are asked to invest their money and invite their acquaintances for the same purpose. New investments are used to fulfill obligations of previous investments – this continues until the bubble bursts and all remaining investors lose their money.

Leave a Reply

Your email address will not be published. Required fields are marked *