Top 4 Highly Influential Scams in Crypto Mining

December 4, 2022

Top 4 Crypto Mining Scams To Avoid This Year

Due to their continued unfamiliarity and lack of widespread regulation, many investors are leery of cryptocurrencies.

There have been several frauds around cryptocurrencies ever since they were accessible to the general population. But cryptocurrency has gained popularity recently. Scams involving cryptocurrencies are therefore becoming more prevalent. So that you are aware of the fraud, we have listed the top crypto mining scams in this article.

Numerous people are actively investing in cryptocurrencies as the trend towards them grows. Unfortunately, this has made it easier for scammers to con individuals. The online world is currently full of uncharted territory, from Bitcoin frauds to Ethereum, Doge, and other businesses.

The top crypto mining scams to be aware of and steer clear of are listed below. But if you’ve fallen victim to cryptocurrency fraud, we might be able to help you get your money back – just click HERE.

1. ICO Scams

Initial Coin Offerings, or ICOs, are one of the well-liked methods of raising money for a business. ICOs are rumoured to think they can take the place of traditional venture capital-based startup financing.

The earliest adopters of ICO have the opportunity to grow their money as well. As a result, ICOs are often excellent for investing. However, ICO fraud is on the rise. Scammers frequently use PR techniques to hype a project, including telegram channels, messages, adverts, and so forth. Their main objective is to draw in as many investors as they can by offering them a set number of coins in exchange for chances at greater payouts. For instance, take the text scam involving the butchering of pigs.

Scammers, however, leave the project quickly enough without providing the investors with the promised incentives. Additionally, the coin’s value starts to decline. You ultimately lose all of your investments as a result. Additionally, the majority of ICOs are created on fake exchanges. Fortunately, ICO scams are relatively uncommon today.

However, falling for such ICO scams is fairly typical if you are new to the world of cryptocurrencies. To remain safe, remember two things: Check out the ICO you want to invest in and use a reputable cryptocurrency exchange, such as Swyftx if you are based in Australia or Binance for international operations.

2. Android Crypto Mining Apps

It seems like a brilliant idea to mine cryptocurrency directly from your Android device. Who wouldn’t want to earn money while using their smartphone, after all?

Given that you may mine Bitcoin or any other currency without having to buy expensive hardware, this appears to be a fantastic investment opportunity.

But the majority of cryptocurrency mining apps, according to data by Lookout, Inc., use Android apps.

BitScam and CloudScam are two examples of these apps that are well-known. These apps were made with consumers interested in cryptocurrencies in mind. The apps, however, are no longer available on Google Play.

However, more than 170 cryptocurrency mining scams are reportedly available, according to the article. In addition, it is anticipated that these have defrauded over 93,000 users.

Considering these apps The BitScam and CliudScam apps promote themselves as platforms for cloud-based cryptocurrency mining in exchange for a fee. The app owners allegedly kept the cash while failing to provide the promised services, said the Lookout researchers.

Additionally, it is claimed that these programmes defrauded their users of almost $350,000. Top Coins, Mr. Bitcoin, Star BTC, BitHash, Bito Holic, and more well-known applications are among these.

By using these apps, consumers were led to believe they were paying for cryptocurrency mining services. But the users received none of these services.

Additionally, because the programme did not perform any dangerous actions, it managed to remain hidden and run without incident while being monitored by the Play Store.

3. BitConnect

BitConnect was a native token and open-source cryptocurrency. It was first introduced in February 2016. Nevertheless, it quickly became apparent that it was a Ponzi scheme.

They set out to make the initiative operate in a manner similar to how the BitConnect programme pays out members. It promised investors a monthly total return of up to 40%. A four-tiered investment structure based on the total of the initial contributions was also used. As a result, you can make higher and faster profits the more money you invest.

Additionally, BitConnect guaranteed a daily ROI of 1%. The business also claimed to be working on volatility software and trading bots that might turn a bitcoin investment into a fortune. Based on this, if you had put $1,000 into your BitConnect investing account three years prior, it would have grown to $50,000.

However, the crypto community has expressed strong disapproval over this. Meanwhile, the business kept up the momentum and continued. However, soon after the BitConnect scheme was launched, its creators pulled out, leaving the investors with BCC, which has a virtual value of 0.

4. OneCoin Scam

OneCoin was one of the unexpectedly biggest cryptocurrency scams. Crypto Queen Ruja Ignatova, a citizen of Bulgaria, was a con artist.

The fraud operated as a multi-level marketing, or MLM, scheme and advertised its currencies from 2014 to 2016. She referred to the coin as a Bitcoin killer since platform users could mine it with ease. People from all around the world soon began to invest their savings in OneCoin. A report claims that in the first half of 2016, British consumers spent approximately €30 million on OneCoin, including €2 million in a single week.

When OneCoin first came out, it was advertised that 120 billion coins could be mined and utilised for transactions. However, it lacked a blockchain model or payment method. But in 2016, as other nations started looking into the business, the deception became public. A pyramid scheme was being reported by some nations. Additionally, Founder Ruja vanished in 2017 after a warrant for her arrest was issued following years of investigations.

Overall, OneCoin was never actively traded as a cryptocurrency. Or you could spend the coins on anything you want. 

Caution Is Mandatory

So those were a few of the known cryptocurrency investment frauds that the community had encountered. These types of scams unfortunately occasionally emerge. As a result, you must be very selective about where you spend your money if you want to succeed as a niche investor. Prior to falling for such frauds, do a thorough investigation.

Use reputable platforms like Binance, Coinbase, Paxful, or PayBis only if you are thinking about investing in cryptocurrencies. You can use the special website validator provided below by Scam Detector to check any cryptocurrency websites you think might be suspicious:

Guidelines for Reporting a Crypto Mining Scam

Share this post on social media with your family and friends. Using the following link, you may also formally report potential cryptocurrency mining frauds to the Federal Trade Commission:

Inform The FTC Here

How To Better Protect Yourself

You may sign up for the Scam Detector email here if you want to be the first to learn about the most well-known scams every week.

To learn how to be secure online, educate yourself with some of the other articles about crypto scams listed below. Last but not least, disclose further cryptocurrency fraud in the comments area below.

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Bitcoin scams
Sushil Kumar

I am Buzznc Staff and I am Senior Editor !

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