Five Common Bitcoin Scams

The ever growing world of Bitcoin

The decentralized cryptocurrency is no stranger to controversy.

Weeding out the middleman of banks and the lot, has some major upsides to changing the way the world views currency.

While Bitcoin is a promising endeavor to changing the way economics work, Bitcoin users can be made left vulnerable and have a chance of losing all of their investments.

Currently, the cryptocurrencies are not regulated enough to protect people from scams.

Unfortunately, like many markets, there exist conmen and hackers who seek to perpetrate Bitcoin scams.

While they not always successful, the fact remains, these scams can happen.

Five Common Bitcoin Scams

Malware Scams

Malware scams are nothing new. Malware is a software designed to cause damage or steal information from a computer or computer network.

Cryptocurrency targeting malware seeks to monitor your copy/paste clipboard for any cryptocurrency wallet addresses.

By doing this, attackers can steal your crypto-wallet from right under your nose!

The best way to counteract and protect yourself, is to keep your device’s security policies up-to-date and be wary of any downloads that might seem suspicious.

Fake Exchanges and Wallets

Fake Exchanges and Wallets function similarly to phishing scams. Phishing is a fraudulent attempt, by scammers, to obtain information like usernames and passwords, by disguising themselves as a trustworthy source.

Some of these fake exchanges will display information that makes them seem reputable, occasionally they might even present you with a promotional offer that seems too good to be true… if it sounds too good to be true, it probably is.

Your best bet for protection against these types of scams is to use known, reputable sources like Coinbase or Kraken for your Bitcoin exchanges.

Keep up-to-date with Bitcoin & Cryptocurrency news to know of any changes to the cryptocurrency landscape.

Multi-level Marketing, Ponzi, or Pyramid Schemes

Multi-level marketing or Ponzi schemes are an extremely common type of scam, even outside the realm of cryptocurrency.

These types of scams offer would-be Bitcoin investors opportunities’ for progressively larger sums of Bitcoin.

At first glance, their offer might sound and seem legit… after awhile, the scheme will collapse.

The promoter will have trouble luring in new investors and the scheme promoter will take the money and run off.. .never to be heard from again.

Like most other scams, be careful and know the sources. If a scheme sounds too good to be true, it probably is.

Email Scams

Probably the most common scam since the dawn of the internet. A simple e-mail scam, may be send to your e-mail address asking for information.

Sometimes these e-mails will try to blackmail you into thinking you owe the IRS money and make threats of law-enforcement action.

Do not trust any e-mail asking for sensitive information or threatening you with law-enforcement action. Although this seems like common sense, there are hundreds of people who get scammed with this method.

Fake Crypto-Currencies

With soo many different cryptos on the market, scammers will attempt to have you invest into another cryptocurrencies, claiming Bitcoin is no longer viable.

Once you’ve made the investment, they will transfer the funds to their own personal accounts.

The easiest way to avoid scams, know your sources and again, if it sounds too good to be true, it probably is.

Author:

MagForex has been actively trading Forex since 2008 and up until today, he is still very active in Forex and added Bitcoin and other Cryptocurrency pairs in his trading portfolio.