Digitalizing the world has given rise to many positive aspects and has made life easier. There are many ways in which a person can make money quickly and safely. Unfortunately, with all the positives and easy forms, rapid digitalization has also given rise to many scams and frauds.
Before understanding and knowing about the different Bitcoin Scams, let’s understand what bitcoin is.
What Is Bitcoin?
Bitcoin is a digital currency that aims to eliminate the need for central authorities such as banks and the government. It is a virtual currency designed so that money need not be in control of any person, group, or entity.
Bitcoin scams are how a person or an organization manipulates people into sending them bitcoins by promising them attractive goodies or sending them money to teach them how to use crypto or tell them how to increase their money.
This coaxing can happen either by promising materialistic gifts, the promise of sharing knowledge, or love, trust, and a relationship.
Bitcoin or any other cryptocurrency has no backing from the government or any higher body, which makes it even easier for scammers and gives them an easier way to swoop in and cheat people. Therefore, it is essential for people to be careful and alert.
How to identify these bitcoin scams?
Scammers use several techniques to lure victims and cheat them into buying or selling crypto. Which are:
Bitcoin investment schemes:
Over here, scammers call people acting as investment managers, saying they have earned millions and will help you earn millions. Then, they ask for some amount as a fee for consultation, after which they disappear.
Rug Pull scam:
The number of rug-pulling scams has increased dramatically over the past few years. The amount of money scammers earn by rug pulling is in the millions.
The scammers or the developers will promise that the price will reach the moon and, on a false promise, attract crypto investors. Then, after that crypto appreciates at a substantial price, these scammers or developers dump all their coins making millions and billions in the process. But, simultaneously, the inverters are left with worthless coins.
Give Away Scams:
The scammers announce exchanges and giveaways of bitcoins. They may provide a link or a bitcoin party to lure people. Then, they take the money and never show up. Giveaway scams can take place even through social media like Facebook, Instagram, Linkedin, etc., as a part of which Fake accounts of well-known people like famous movie actors, business people, or well-known organizations would be created to lure people. Personal details and other wallet information are taken with the promise of selling bitcoin.
Many bitcoin scammers offer free coins. In such situations, it is easy to get carried away, but it is equally important to tell yourself that nothing is for free.
Scammers send emails to victims asking victims for personal information, like wallet details or key information. They even send links to some shady websites to capture information.
Beware of people who call you and say they will help you double your investments, teach you how to make money, or sell bitcoins. They are probably scammers who are seeking your money. Likewise, people speaking about bitcoin sales are probably bitcoin scams.
Save yourself from people you meet online. In today’s age, it is very common to make online friends and relationships. Unfortunately, we have seen many success stories, and the number of scams is equal and sometimes more.
Scammers here meet people and prey on people online, trying to gain their trust with some sweet talk, then they ask them for their wallet details and other required information, after which they disappear and never talk to them again.
Blackmailing is another very concerning part of romance scams. The scammers blackmail the victim with text messages, pictures, or videos.
Here scammers offer jobs with high-paying salaries and lots of facilities. In return, they ask for payment in bitcoin for job training and skilling, after which they disappear, and the victim is left with no job and a loss of lots of money.
Here scammers take a lot of money, saying they have a lot of knowledge and made a lot of money on crypto and now are helping people get the benefits to make them rich. When people are lured and pay the money, they either disappear with it or give very basic knowledge, which is not worth the money spent. This is a common way to cheat people and take away their money.
How to avoid these Bitcoin scams?
- The best way to avoid these crypto scams is to avoid giving Private crypto keys to people. These control your wallet access.
- People who promise you that they have a course to help you make lots and lots of money in crypto should be ignored. There is a high chance that they are scammers.
- People who say they are investment managers and will help you grow your money should be ignored.
- Ignore shady email links.
- Ignore messages from celebrities, business people, or renowned organizations about helping you grow your money or requesting you to buy crypto.
- Beware of people you meet on dating apps or other social media. They could just be leading you to bitcoin scams. Avoid people who are adamant about not meeting you in person and only text always. It’s always better to meet the person before transferring their money or giving them your bank details.
- It is always better to refrain from sending pictures or videos to people you have not met or people who do not want to meet and only want an online relationship.
The best way to save yourself from scams is to research.
It is very important to understand that with the growth in digitalization, scams will also keep increasing. People in the anonymity of social media do way more fraud than expected. So, Till the world of social media and the internet grows, the number of frauds and scams also will keep growing and It’s on us to be aware.