Bitcoins are a type of digital currency. They are entirely virtual. Bitcoin is just like online cash, and it can also be used to purchase products and services.
However, recently Bitcoin scams are increasing, and Bitcoin users should learn how to protect their virtual wallets. The con artists may employ any method to scam people and take away their bitcoins. Therefore, Bitcoin users should be extra careful while using Bitcoins.
People can obtain Bitcoins by using three alternatives, they’re mentioned below:
People who use their computers daily can set their computers up to verify and complete the Bitcoin transaction processing activities every day, which enables the Bitcoin system to function seamlessly. Computers are programmed to compute the most complicated sums. After successfully resolving the mathematical problem and verifying the transactions, the owners of the computer are then rewarded with bitcoin. Some people even install the most powerful computers to try and speed up the process and obtain Bitcoins. This process is known as Mining. The more complicated the sums are, the more bitcoins are produced. If mining begins at some moment, it could take several years before get a finished bitcoin.
Bitcoin functions without the bank or any other financial institution to manage its transactions. Bitcoin transactions are stored in the digital network formed by blockchain technology. Blockchain technology stores a few transactions in each block and later pairs these blocks that are created with the transactions. Further, this system does not allow modification of the transaction data that’s already been registered. It is because the confirmation of the Bitcoin transfer exists on the shared public ledger.
Bitcoin scams are classified into several types, they are as mentioned below:
The con- artists are experts in creating social media accounts and copying people. They try to influence their target audience by pretending to be someone else and publishing fake content on social media. Then, the cheater posts content with a compelling message by using an account that resembles the original content creator and author. Such activity makes it seem as though the verified and original account holder is mentioning it. The impersonators may even try to use the same false accounts to trap others through private or direct messages, to attempt to compromise the targeted victim’s account. Finally, the impersonators post fake bitcoin investment opportunities on social media to attract investors and dupe them off completely.
For example, if you are a social media user and have come across a bitcoin investment opportunity posted by some famous person. And if it does promise you more money back by investment, then, unfortunately, it is a fake investment opportunity. These sorts of promises are generally posted by cheaters who impersonate reputed people and try to get the targeted investors to invest through them.
Scammers set up fake bitcoin exchanges and convince people by providing them with valid bitcoin market prices that would make the scammers think that they are getting bitcoins with fast and convenient ways to access them.
In money transfer scams, emails are sent to bitcoin users by strangers who act as though they require the help of these users in moving some money, and in exchange, users will get a portion of their capital. Make a note not to reply to these types of emails. It is a trap laid by scammers to steal your bitcoins and disappear with it.
While purchasing or selling bitcoin, a party may request you to meet face-to-face for the exchange. If you feel it is not a trusted party and is already familiar with that fact, then it is a hazardous deal, as there are high chances of you getting trapped or robbed. Besides, these scammers are experts in exchanging fake fiat currency for bitcoin.
The cheaters act as recruiters and post exciting job offers on social media to attract job seekers. Job seekers, out of curiosity, come across those job offers, But unfortunately, these are false job offers. After coming across those rewarding job offers, job seekers gain the willingness to obtain that job. Then the so-called recruiters ask the job seekers to pay a bitcoin fee for the training process.
For example, B came across an exciting job offer posted by a recruiter on a social media account, let’s take Instagram for instance. Then B gets excited about that job posting. B is a job-seeker, so he will think that the job offer is exclusively for him. Then B gets in touch with the recruiter who has posted that job posting. After that, the recruiter interviews him. Then B aces the interview. After interviewing B, the recruiter asks for the bitcoin payment to begin training for the recruited candidate on the job.
In the prize giveaway scam, the hacker or cheater tricks the bitcoin users. They mention to the users that if they need the prize, they should supply their confidential information like name, address, email, phone number, digital wallet keys, etc for the verification process. The goal of the trickster is to hack your personal information and then use it for illegal purposes such as impersonating you online.
For example, C comes across a prize giveaway on social media and gets excited. In that prize giveaway post, it is given that if one needs the prize, they can acquire eligibility by supplying confidential information like digital wallet keys, email id, phone number, etc.
Below mentioned are the preventive measures for stopping the occurrence of bitcoin scams.
Educating yourselves on bitcoin scams and their preventive measures is essential. It would be helpful for you while you deal in bitcoin, anytime in the future.