5 Common Bitcoin Scams and How to Avoid Them

Many people have lost money through Bitcoin scams. This article also explains five crypto scams and ways to avoid them.

Bitcoin scams have been around for years and are not ending anytime soon. So, crypto users need to know what scams criminals use and master ways to keep their cryptocurrency assets safe. Further complicating everything is that Bitcoin scammers have improved their schemes to make them even more effective. As a result, securing your funds requires the application of several strategies simultaneously. Here are the most common ways you can lose your BTC to criminals.

1. Bitcoin Dust

Bitcoin dusting is one of the most common crypto scam techniques today. In this case, attackers send small Satoshi fractions to numerous users on the network. They attempt to reveal the personal details of the recipients and then pursue them directly.

Some information that a crypto-dust attack would want to obtain is the home or work office addresses. Scammers can use different techniques to get money from you if they succeed. Most Bitcoin dust attacks lead to the kidnapping of the victim’s loved one or even themselves.

What follows the kidnapping is a series of threats and ridiculously exploitative demands. Cryptocurrency dust scammers usually demand large sums of money from their targets. Failure to send the payment can result in more complex situations. For example, criminals may torture and kill their hostages if they do not get the money.

Bitcoin dust attacks take a long time to succeed but are challenging to detect. You should be keen to notice such activities as they send small chunks of Bitcoin to your wallet. The best you can do is to regularly check for any abnormal activity in your transaction history and take appropriate measures.

2. Fake Cryptocurrency Projects

Bitcoin’s growing influence has cost several users their hard-earned cash. Some scammers are brilliant and persistent people. They always go the extra mile to create something easy for Bitcoin enthusiasts. An example of such an initiative is the initial coin offerings on new cryptocurrency projects.

In this technique, scammers develop a fake version of a new coin. They then sell it to unsuspecting digital entrepreneurs at affordable prices. Once the crooks have amassed a lot of money from the scheme, they shut down unexpectedly and get away with investors’ funds. You can avoid falling into such traps by confirming the site’s authenticity and offering initial coins before paying anything.

3. Phishing attacks

Recently, phishing attacks have become more frequent in the cryptocurrency sector than ever. Phishing attacks are one of the deadliest Bitcoin scam methods because you can hardly detect them. Such attacks target users’ login credentials and then use the details to access the associated Bitcoin wallets and steal funds.

Phishing attackers clone genuine Bitcoin trading websites or mobile apps. They then email users with fake platform links, telling them to take advantage of some lucrative offers. Scammers will get your login information when you log into their fake websites. Next, the attackers will use your login credentials to enter your real crypto wallet or trading account and transfer all your money.

Fortunately, some measures can protect your Bitcoins from phishing attacks. First, you should only trade on secure cryptocurrency trading sites like instant connect. Such platforms have various anti-fraud strategies to maximize security. Ensuring that you only sign up with an authentic trading platform can also be helpful.

4. Malware attacks

If Bitcoin scammers fail to convince you to sign up on their fake trading platforms, they will use other more advanced mechanisms such as malware. A Bitcoin scammer can remotely install malware applications on your device without your knowledge.

The most common trick crooks use to send malware to your phone or computer is via email or social media messages. You may receive an email from an unknown sender requesting you to follow a link to view the latest product promotions and offers. Surprisingly, you won’t see anything significant when you click the link. So, you will probably close the page, not knowing that some malware programs are already running in the background on your device.

Most malware applications will send your username and password to the attackers whenever you log into your wallet or trading account using a compromised device. To be safe from malware attacks, you should update your antivirus software regularly.

5. Random Bitcoin Investment Invitations

Remember, anything is possible in the digital business ecosystem. Therefore, you need to know more about crypto investment invitations to avoid losing your funds to criminals. Scammers using this method will approach you with excellent Bitcoin investment opportunities.

Some may even promise over 100% returns if you send them your BTC to invest. Unfortunately, you will only see or hear from them when you send the amount they asked you to pay. Always be keen and avoid the unnecessary rush to keep such scammers away from your resources.

Bottom line!

Bitcoin scams are currently one of the most challenging vices in the cryptocurrency industry. They can take different forms, and tracking them has become more complex over time. Some of the most common crypto scam techniques are phishing, malware attacks, Bitcoin dusting, fake cryptocurrency projects and excessive investment opportunities.