Bitcoin scams – What you need to know

Bitcoin has emerged inevitably in the past decade in both tech and commerce sectors. The promise of instant return is making investors eager to embark on cryptocurrency investments. However, just like any investment platform, there are many bitcoin scams that could result in losing a substantial amount of money. Despite increased regulations, there are plenty of bitcoin scams and schemes that can trick people with good intentions.

When stepping into the world of bitcoin, you must know the different trading risks. To save your investment, read about three common bitcoin scams and how to avoid them.

Ledger Text Message Scam

Ledger offers a hardware wallet – a cryptocurrency wallet, that stores user’s private keys in a secure hardware device. Recently, many crypto users are receiving text messages from Ledger imposters stating that their hardware wallet is deactivated. The cybercriminals claim to be Ledger representatives and ask the Bitcoin user to complete some KYC regulations by filling out a bogus survey on a website. Do not click on such links received on texts – it is one of the common Bitcoin scams.

The Ledger scam has different variations, and it is one of the many phishing scams. On every malicious text message, the instruction is to fill out a form, where you need to be cautious and avoid clicking on such links. Also, inform Ledger about any scam text message you receive.

Crypto Cloud Mining Scam

Some scammers try to lure investors by promising significant earnings via crypto cloud mining. This can be a major risk to those who have minimal understanding of the concept.

Our client became a victim of a crypto cloud mining scam and told our specialist team: “I was contacted by a Chinese girl on a dating app, she told me about a new cryptocurrency that was about to launch. She convinced me that, if I invest now, I will earn a huge sum of money once the cryptocurrency will be available in the market. I was directed to a website where I purchased the currency and was told that the website has a super miner feature that will allow me to have space on a server for a specific time. In return, I will earn huge profits as per that period. It was a scam, and I lost my money.”

Scammers promise unrealistic returns such as the above case, no mining company can guarantee a set amount of return per period – let alone a particular amount. When investing in any type of cryptocurrency, make sure to do your research to avoid falling for scams.

Social Media Scam

We received a case from a client who was scammed on a social media network. Here is what we were told:

“Someone on a job searching website contacted me; he encouraged me to trade in the company he was working. I was told that I can invest as low as $300, and I will receive huge profits on that investment. He opened an account for me on a website and asked me to check the trade going up every day. I invested in that company, and after 2 weeks I contacted and requested to withdraw my money because I was receiving various emails asking me to pay another fee. They demanded me to pay the fee multiple times which was very suspicious. Although I refused to do it, the company started to threaten me that if I will not pay the fee, I will be in some trouble.”

On social media, people receive scam messages every day and they do fall for cybercriminals when promised huge profits or return on investment. You just need to be aware of all kinds of scams before putting your money on investment platforms. However, the key is to read about it and look for authentic sources or registered companies.

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      April 15, 2022

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      February 19, 2022

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