Bitcoin is not a new word for many of us. The Bitcoin Scams industry is one of the most established industries in the cryptocurrency industry. While in the past scammers used to focus only on the newcomers to the cryptocurrency market, today scammers are focusing on more experienced users as well.
The crypto scams industry has become so big, that there are even companies that are dedicated to keeping track of all the scams and providing the public with a database of all the reported scams.
Here are the top Bitcoin scams and how to avoid losing your money.
Fake Exchanges Bitcoin Scams
There is a lot of panic in the Bitcoin community right now. A lot of fake exchanges are scamming people out of their hard earned bitcoins and the real exchanges are not much better. Some examples for these fake exchanges are: Bitec- fake Exmo- fake Eobot – fake Coinsecure – hacked Lobster – fake There are a lot of fake exchanges out there so be careful where you send your money. If you want to buy bitcoins then send your money to the real exchanges.
Fake Giveaways Bitcoin Scams
If you are a newbie to digital currency trading, then you must be aware of the buzz around the Bitcoin online. But then you must have heard about the Bitcoin scams and fake giveaways in the internet, right? The Bitcoin ecosystem is currently littered with fake Bitcoin exchanges and giveaway scams. These are the schemes that are used for ripping off the new users. These websites will often offer the lure of free Bitcoins, but will require you to sign up for a Bitcoin exchange and deposit your funds there. The next thing you know, the website is no longer available and you’re left with a worthless Bitcoin address and no way to get back your funds.
Bitcoin Scams By Social Media Phishing
It is a very popular scam right now, it’s called the “Bitcoin Scam using the Social media phishing” . It involves creating a facebook, instagram or twitter account, then linking to a fake site which asks you to “verify your email” or “verify your account” with the promise of free bitcoin, etherium or any other coins. The scam site will then ask you to enter your personal information such as name, email address, “verify” your account by clicking a link of a certain amount of coins. The link will lead you to another site that will ask for your private key information. Once you give them that information, they will then be able to take all the coins
The Copy-and-paste malware is very dangerous and it spread very rapidly on the internet and it was created by the Cyber criminals. The threat is a new type of malware: the Copy-and-Paste
Threat. This type of malware is not a virus but a Trojan (TSR). The Trojan allows a hacker to take control of your computer.
The Trojan is spread through the Copy-and-Paste method. The Copy-and-Paste malware is a code that can be included in any document. When you open the document, your computer gets infected with the code.
Pyramid And Ponzi Schemes
There are many pyramid schemes of Bitcoin, also called “Bitcoin scams”. But many people don’t know that bitcoin itself is a pyramid scheme. This is because if you choose to abandon bitcoin, you will lose your investment. For example, if you got into bitcoin 4 years ago and you plan to drop it next month, then the price of bitcoin will fall to zero. You can see the example of Madoff scheme below, the so called “pyramid schemes of bitcoin”
A Ponzi Schemes, It looks like a pyramid scheme, it acts like a pyramid scheme. But it’s not a pyramid scheme. Instead it’s a Ponzi scheme. The latest scam to hit the bitcoin community is one that we’ve seen many times in MLM and other scams. It’s a simple scam that guarantees you a constant return on investment. In this scam, you don’t even have to do much work.
The ransomware Bitcoin scheme, where crooks demand payment in Bitcoin as a way to avoid detection, has been around for years. It’s one of the main reasons the Bitcoin community is so skeptical of new ransomware scams—it’s old news. But that didn’t stop the self-proclaimed makers of the Chrono Wallet Ransomware from trying. Their malware took a more sophisticated approach than most. By encrypting sensitive files and then demanding that the victim send them Bitcoin in order to get their files back.
How it’s actually Came To Us and How Its Work
- Ransomware is a kind of software that is designed to block or restrict the access to certain computer system while you are working on it.
- Its often arrives in a form of email attachment, fake software update, or cracked software.
- Ransomware is usually used in collaboration with another malware such as trojan, worm, virus or any other type of malware.
- Ransomware often blocks the computer system and asks you to pay a ransom to unlock it.
How You Can Protect Yourself From Ransomware
- Be extremely careful when clicking on links on the internet
- Do not visit untrustworthy sites
- Use anti-virus software
- Keep all your software up-to-date
- Don’t open strange attachments
- Keep your operating system up-to-date
- Use strong passwords
- Use pop-up blockers
- Check your email settings
Before exit read this, How do I survive a bitcoin scams?
Some Tips To Avoid Bitcoin Scams
While online scams have been around for years, the explosion of Bitcoin as a media darling and alternative currency made it a prime target for scammers. The popularity of Bitcoin has allowed scammers to create new methods of deception, from Bitcoin pyramid schemes to Bitcoin wallet scams.
First of all, you need to ensure that you have a reliable method of obtaining bitcoins to trade with. Whether you prefer to use a bitcoin broker or a bitcoin ATM is up to you. But you should definitely avoid using the latter option if you intend to trade with large sums. The reason for this is that you cannot get your cashback from a bitcoin ATM if you have made a mistake unless you are located in a country where the machine is part of a network that permits such a withdrawal (in the USA, for example, this is not permitted).
If you have been a victim of an online scam through fraudulent online platforms. We are here to help you recover your loss from malicious platforms and individuals.
Contact us here Noble Ally Finance Security. We are an international cybersecurity company that specializes in fraud investigation, monetary asset recovery, data protection, and a wide range of digital security services.