Bitcoin is 100% legal in almost all parts of the world. No law restricts the buying and selling of cryptocurrency. Cryptocurrency is a very rewarding investment, but like any other investment, it is not risk-free. With the increase in popularity and usage there have been a number of ill practices and bitcoin scams that have come up, many scammers have come into the industry with the sole motive to fool victims and steal money and cryptocurrency.
Below we will discuss fraudulent activities in the Bitcoin market and how to protect yourself from them:
Bitcoin investment schemes
Scammers here act like investment managers who have made millions through bitcoin, they promise victims that they will help them to achieve the same with bitcoin investments. Most of the time they request an upfront fee and then disappear later.
If the scammer has a long-term motive, they start with advice, and after a few sessions and taking some money from the victim they disappear.
Celebrity endorsement scams
This is another type of scam where the scammer takes real photos of a celebrity and puts them on fake ads, accounts, articles, or websites. So, makes it look as if they are endorsing and promoting a large gain from the bitcoin or cryptocurrency investment.
To make it believable they make professional logos and professional websites and use the name of a big company with a little change to avoid copyright issues.
Over here the scammers come up with a project, and they go to investors for money. After getting the money buy investments and show some progress. Later, after actually gaining the trust of the crowd and investors, they leave the useless and worthless assets for the investors and disappear.
Rug-pull scams are also known for NFT which is digital assets as well.
Lately, after the increase in social media scammers have been using social media as well to steal.
They get in touch with victims online, try to woo them, flirt with them, and make the victim fall in love. Later continue for a while and start asking for money in the form of bitcoin. Then they start to ask for personal keys. After getting what they need they disappear.
In this bitcoin scam, the scammers send links to fake websites through Whatsapp, sms, or email. Lately, scammers have become very smart. These websites seem so sophisticated and professional that no victim would even get a hint that they are fake.
On these websites, they ask for key information and other personal information, which would get recorded in their database. It would make it easy for them to steal from the victim.
Another possibility is that this website may consist of an ad for a course on how to become rich by investing in bitcoin. Finally, after the payment, they might disappear or provide a very basic course that is not at all worth the paid money.
How to save yourself from these scams
- Before signing up for a course after listening to someone who says they will help you get millions through bitcoin investment, research about them. Look up their merits, or ask a friend or relative who has knowledge about investments.
- It is not a very good idea to believe everything if there is a celebrity endorsement attached to it. Therefore, do your thorough research first before purchasing or placing your bets on anything.
- It is never a good idea to fall in love with someone you meet online without meeting them, even if you do never give them your personal bitcoin key details without meeting them. It is possibly a bitcoin scam.
- If anyone comes for funding it is always advisable to do some background checks before providing them with the money.
- Fake websites have become very sophisticated and professional lately. It is very difficult to figure out whether it’s a real service or a scam. So, it is very important to look carefully and do your research.
- Never give key information or any other sort of personal information however genuine the website might seem.
- Before signing up for a course, research the website that is offering the course and the instructor who is teaching the course.
Bitcoin investment is very rewarding and has the potential to make you very wealthy, but it is very important to be safe and keep yourself informed about these bitcoin scams which have become very common in today’s day. Always seek help from the government and genuine firms. If you have ever lost your money because of these scams, they would surely help you recover your money or cryptocurrency back.