How to Protect Yourself From Fraudulent Bitcoin Investments and Other Cryptocurrency Schemes
Scams With Cryptocurrencies: How To Prevent Bitcoin Investment Fraud
Now is the time to discuss cryptocurrency fraud in this post. Why? People may be eager to start investing in cryptocurrencies due to the guarantee of a quick return. Sadly, there are a lot of online bitcoin scams that could cause someone to lose a sizable chunk of money.
Below, we also expose several scammers (bogus bitcoin wallets). If you’ve encountered scammers, do share their identities in the comments below. Let’s get started now.
You need to educate yourself on the numerous trading dangers if you’re new to the world of bitcoin, Ethereum, or XRP. Learn how to avoid four common bitcoin scams to safeguard your investment. Alternatively, if you believe you have fallen victim to cryptocurrency scam, visit HERE and we may be able to assist with your money recovery.
The Top 4 Crypto Mining Scams
1. Phishing Scams
Probably, you’ve heard of a phishing scam. It occurs when a cybercriminal uses false emails to get access to a person’s personal data. They could send an unwanted email that appears to be from your bank, PayPal, or a merchant, for instance.
It’s also a fairly typical cryptocurrency scam because a cybercriminal will send an email from a site and address that closely resembles the one that runs your bitcoin exchange or wallet provider. A cybercriminal could gain access to your account using your details after you enter your information on a similar fraudulent website and then take your money.
You should: if you want to make sure you never fall for a bitcoin phishing scam.
Never click on an unknown URL.
Make that the website’s URL is from a legitimate exchange or wallet provider.
Keep your private key private.
A new anti-scam hotline has been established so that you may report any phishing scams to stop others from falling for the internet ruse.
Additionally, it’s critical to be careful of phoney Bitcoin exchanges, since they might be a front used to persuade a customer to part with their money. For instance, they might offer various promotions that might appear to be too good to be true. They might try to steal your cryptocurrencies once they get your vital information.
Uncertain promotions should not be completely disregarded, of course. Visit this page to learn how bonuses and promotions for gambling might increase your bankroll. However, it would be ideal if you performed your research to steer clear of phoney exchanges.
You should, for instance:
- Before registering for an exchange, do some research on it.
- Find out where a company is registered, read reviews, and learn more about the team.
- Avoid selecting a wallet at random from an app store.
- Never let anyone coerce you into submitting personal information or making a deposit.
3. Unwanted telephone calls
While new financial innovations like Bitcoin and XRP exist, many con artists still use more established methods to defraud people of their money. For instance, you can get an unauthorised phone call from someone posing as the IRS. They might then try to persuade you that you owe money in taxes and that delaying a deposit via cryptocurrencies could result in legal action.
In order to avoid becoming a victim of the scam, you must:
- Never respond to an opportunistic call
- Call the IRS again at a reliable number if you’re unsure.
- Make a report about their call.
Here are some tips for preventing theft of your Bitcoin.
You may be aware that a malware programme can steal your bank account information and credit card numbers, but you may not be aware that a cybercriminal can use the same techniques to access your web wallet and withdraw money from your account. Even worse, a cryptocurrency miner could be installed by a con artist on your tablet, laptop, or desktop computer.
Make sure you avoid being a victim of a malware scam by:
- Never open email attachments that seem suspicious putting in place and routinely upgrading antivirus software
- Unless they come from a reliable source, avoid downloading programmes
- If you heed the advice above, you’ll be able to stay clear of many cryptocurrency frauds and fast increase your money over time.
BitWallet is a phoney Bitcoin wallet available on the App Store.
An email from a victim of the bitcoin wallet fraud was sent to us. What David S. sent us was as follows:
“Recently, I made an investment in bitWallet. However, not long after, I discovered my bitWallet account had been fully emptied. I am confident that nobody else has knowledge of my private key, and I think the software developer has improperly closed my account. They can be reached at www.sollico.com/bitwallet/.
“The programme is known as bitWallet tm – Bitcoin Wallet in the Apple app store. When I sent an email to their support department, I quickly and condescendingly learned that it was someone else who was responsible for the breach. No one has responded to my follow-up queries.
“I then went back and read the app ratings, and I found other similar scam allegations. There were reports of people being unable to transfer their coins. Others said that despite having the right passcode, they were unable to access their accounts.
On their website or mobile app, there is essentially no company information. This wallet appears to be a scam from all indications. I have since lost several thousand dollars.
How to Report a Scammer in the Cryptocurrency World
By using the supplied social network sharing buttons, you can alert your family and friends to these bitcoin scams. Using the following URL, you can also formally inform the Federal Trade Commission of the con artists or any other suspicious activities in the sector:
Inform The FTC Here
How To Be More Protective
You may sign up for the Scam Detector newsletter here to receive weekly updates on the most infamous scams. We guarantee not to spam you, but you will occasionally receive emails. You can protect yourself in many other areas and niches by educating yourself with some other articles on fraud that are located just below this one. Finally, expose additional con artists using the comments area below.