Cryptocurrency Scams: How To Avoid Bitcoin Investment Fraud
It is time to talk about cryptocurrency scams in this article. Why? The promise of an immediate return can make people eager to embark on cryptocurrency investment. Unfortunately, there are many bitcoin scams online that can could result in a person losing a substantial sum.
We also expose some scammers below (bogus bitcoin wallets). Please contribute with names of scammers in the comments section, if you had bad experiences. Now let’s dive in.
If you’re entering the world of bitcoin, Ethereum, or XRP, you must familiarize yourself with various trading risks. To protect your investment, read about four common cryptocurrency scams and how to avoid them.
1. Phishing Scams
You’ve likely heard of a phishing scam. It is when a cyber criminals uses deceptive emails to gain access to a person’s private information. For example, they might send an unsolicited email that could appear to be from your bank, PayPal, or a retailer.
It’s also a rather common cryptocurrency scam, as a cyber criminals will send an email from an address and site that looks identical to your crypto exchange or wallet provider. Once you enter your information into an identical scam site, a cyber criminal could access your account using your details and then steal your funds.
To ensure you never fall victim to a cryptocurrency phishing scam, you must:
- Never click on a suspicious URL
- Check the URL is from a genuine exchange or wallet provider’s site
- Don’t submit your private key.
Report any phishing scams to a new anti-scam hotline to prevent others from falling victim to the online con.
2. Fake Exchanges
It’s also vital to be aware of fake Bitcoin exchanges, as they could be a front to encourage a consumer to part with their funds. For example, they might provide various promotions that could seem too good to be true. Once they have your critical details, they could attempt to steal your cryptocurrency.
It is, of course, important not to overlook questionable promotions altogether. If you click here, you’ll find that gambling promotions and bonuses can top up your funds. However, it would be best if you did your homework to avoid fake exchanges.
For example, you should:
- Research an exchange before creating an account – learn where a company is registered, read reviews, and find out more about its team.
- Don’t pick a random wallet from an app store.
- Never feel pressured into providing personal information or depositing funds.
3. Unsolicited Phone Calls
While Bitcoin and XRP are new financial technologies, many scammers often undertake traditional cons to steal a person’s funds. For example, you could receive an unsolicited phone call from a person claiming to be from the IRS. They may then attempt to convince you that you have unpaid tax and could face legal action if you fail to deposit an amount using the cryptocurrency immediately.
To ensure you don’t fall victim to the scam, you must:
Here is how to protect your Bitcoin from getting stolen.
4. Malware Attacks
While you might know a malware program can steal your bank details and credit card information, you could be unaware that a cybercriminal can use similar tactics to access your web wallet and take funds from your account. A scammer could even infect your laptop, desktop computer, or tablet with a cryptocurrency miner.
Ensure you don’t fall victim to a malware scam by:
- Never opening suspicious email attachments
- Installing and regularly updating antivirus software
- Avoiding downloading programs unless they’re from a reputable provider
If you follow the above tips, you could avoid various cryptocurrency scams and quickly grow your funds throughout the years.
Fake Bitcoin Wallet: bitWallet in AppStore
We received an email from a victim of the bitcoin wallet scam. Here is what we received from David S.:
“Recently I invested in something called bitWallet. However, soon after that, I noticed my bitWallet account was completely liquidated. I am positive no other person has access to my private key and believe the software developer has fraudulently liquidated my account. Their website is www.sollico.com/bitwallet/.”
“On the Apple app store, you can find the app as bitWallet tm – Bitcoin Wallet. I contacted their support email address and received a quick, condescending response that the breach came from somewhere else. I’ve sent follow up questions and no response.”
“Then, I reviewed the app reviews and saw several similar complaints of fraud. People mentioning they could not transfer their coins. Others complaining they were locked out of their account and were positive they had the correct passcode.”
“There is effectively no company information on their website or the mobile app. All signs are pointing to this being a scam wallet. I am now out thousands of dollars”.
Cryptocurrency Fraud: How To Recover Monies lost to crypto fraud or investment
i invested about $56,000 into CRYPTONXT with the aim of diversifying my trading portfolio. However, with my strict habits of growing my account 240% before taking profits, I never attempted any withdrawals, not until two months ago when i tried to withdraw but all effort was in vain. I called the account manager and explained the situation, he told me i would be able to withdraw after 4 working days which sounded shady to be very honest. 4days went by, still no withdrawals, I tried reaching out to the manager and customer service line but non of them were reachable till this moment.
Sadly, what I have just found out which is worse that my personal details like my bank account, card numbers, phone and passport details have all been sold on the black market. This is a heads up to everyone else to change your details immediately after you realized you’ve been scammed because the after effects are on-going.
I am in touch with a Charge back company, they have the best professional Ethical hackers and they helped me recover my funds,you can contact them also if you need their service, contact them via mail; firstname.lastname@example.org
You can also officially report the scammers or any other suspicious activity in the industry to the Federal Trade Commission using the link below: