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Bitcoin Scam: Don’t Fall a Victim

Scammers are good at locking on to anything trending. The bitcoin virtual currency market has been flooded with these fraudsters in recent times.
Bitcoin, just so you know, is a digital currency. Unlike the normal currency, it is not controlled by the central bank or government of any country, but its value is based on software that is alien to a lot of people.

Since just a handful understands its technicality, they have used this knowledge against the unsuspecting investors. This chicanery has been fired up through the social media, scamming hundreds of their money.

Most of those who invest in bitcoin are usually made to believe that the digital currency always appreciates, which has proved misleading in recent times. The truth that only few understand is that bitcoin is very unstable.

Recently, zerofox made a report which reveals that bitcoin markets is currently infested by fraudsters posing as marketers and miners

Now the big question is “How do i know a bitcoin scam?” Here are some red flags to look out for.

Malware Downloads

With the quest to generate some free bitcoins, a lot of internet users have been lured to downloading software that are harmful to your computer. Zerofox reports a popular technique where social media users are tempted to click URLs, posing as download links for Bitcoin wallets.

With this technique, users, with promise of free bitcoins, attempt to download the malware-infested app. Also reported was the use of bitcoin surveys to distribute malware. Internet users are therefore warned to abstain from any URL that is not HTTPS secured or shortened.

Bitcoin Phishing Impersonators

The social media is flooded with impersonators. The bitcoin brand impersonation has been used to get victim’s credibility and trust.

Phishing websites criminally act as though they are offering a search engine service to help people check if their bitcoin key is in their database. As unsuspecting persons punch in the digits, their private code are phished and the criminals get access to the ignorant bitcoin holder’s wallet.

Bitcoin Flipping scams

Fraudsters offer bitcoin owners exchange of their money, following an upfront payment or an overnight bitcoin doubling machine. A lot of social media users fall for this trick, losing significant amounts of money.

Bitcoin Ponzi Schemes

These come in genuine forms, but victims only recognize they have been scammed at the end of it all.

This formula promises high turnover within a relatively short period. It could take the form of a multi-level marketing or a highly profitable investment scheme. Victims are made to believe that their investment will be multiplied based on the number of people they refer to the program. In a very short time, the eager members-turned-evangelists would have succeeded in preaching the ‘good news’ and bringing in thousands into the fold. After achieving his goal, the founder leaves with his spoil and the scheme crunches

Don’t Fall a Victim!

Similar to every get-rich-quick solutions, these bitcoin scams preys on the ignorance of their victims. Because it’s a trendy and allegedly promising digital currency does not make it an overnight wealth creator. Here are some guidelines to help you avoid falling victim

  1. Disregard any promise to help you mine bitcoin. Also, cybercriminal thrive on crypto currencies for a reason and other bitcoin related criminality have flooded the internet, especially social media.
  2. Do not click any URLs from social media profiles advertising bitcoin offers that sounds too good to be true.
  3. Utmost care and wisdom must be applied when dealing with social media profiles that are legitimate bitcoin trading platforms or brokers: such profiles could be hijacked and used to scam dealers.
  4. Do not be tempted to carry out any financial transaction – bitcoin or otherwise – through chats on social networks.

Have you fallen a victim to these scams? Simply report your ordeal to the internet Crime Complaint Center of the FBI. However, painfully strike out the hopes of recovering your bitcoins.

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Thomas Mattwiew
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