10 Bitcoin and Cryptocurrency Scams on the Internet

Here are a few typical Bitcoin and Cryptocurrency Scams to be aware of.

1. Bitcoin investment schemes

Scammers pose as experienced “investment managers” when approaching participants in bitcoin investment schemes. The so-called investment managers promise their victims that their investments would be successful and make excessive claims about their experience trading cryptocurrency as part of the fraud.
The hustlers demand money up front before they start. Then, instead of making money, the thieves just steal the upfront cash. The con artists may also request personal identity details under the pretext that they need them to transfer or deposit money in order to gain access to a person’s cryptocurrency.

The use of fake celebrity endorsements is a different kind of investment scam. In order to make it seem as though the celebrity is endorsing a significant financial benefit from the investment, scammers take authentic images and superimpose them on false accounts, advertising, or articles. These assertions come from sources that seem credible because they use well-known brand names like ABC or CBS and have polished websites and logos. But the endorsement is a fraud.

2. Rug pull scams

In rug pull schemes, fraudsters “pump up” a new business, nonfungible token (NFT), or coin to attract investors. The con artists simply vanish with the money after obtaining it. These investments’ software forbids anyone from selling bitcoin after buying it, leaving them with a worthless investment.

The Squid coin scam, which took its name from the well-liked Netflix comedy Squid Game, is a common variation of this scam. To earn cryptocurrency, investors had to play: People would purchase tokens for online games and later earn more to trade for other cryptocurrencies. The Squid token’s value increased from 1 cent to roughly $90 per token.

Eventually, trading stopped and the money disappeared. The token value then reached zero as people attempted but failed to sell their tokens. The scammers made about $3 million from these investors.

Rug pull scams are also common for NFTs, which are one-of-a-kind digital assets.

3. Romance scams

Cryptocurrency scams are not new to dating apps. These frauds involve relationships that are established gradually over time, usually through long distance and only online communication. One party gradually persuades the other to give or purchase money in cryptocurrency.

Once they have your money, the dating scammer vanishes. These scams are also referred to as “pig butchering scams.”

4. Phishing scams

Phishing scams have been around for some time but are still popular. Scammers send emails with malicious links to a fake website to gather personal details, such as cryptocurrency wallet key information.

Unlike passwords, users only get one unique private key to digital wallets. But if a private key is stolen, it is troublesome to change this key. Each key is unique to a wallet; so, to update this key, the person needs to create a new wallet.

To avoid phishing scams, never enter secure information from an email link. Always go directly to the site, no matter how legitimate the website or link appears.

5. Man-in-the-middle attack

When users log in to a cryptocurrency account in a public location, scammers can steal their private, sensitive information. A scammer can intercept any information sent over a public network, including passwords, cryptocurrency wallet keys and account information.

Anytime a user is logged in, a thief can gather this sensitive information by using the man-in-the-middle attack approach. This is done by intercepting Wi-Fi signals on trusted networks if they are in close proximity.

The best way to avoid these attacks is to block the man in the middle by using a virtual private network (VPN). The VPN encrypts all the data being transmitted, so thieves cannot access personal information and steal cryptocurrency. Bitcoin and Cryptocurrency Scams

6. Social media cryptocurrency giveaway scams

There are many fraudulent posts on social media outlets promising bitcoin giveaways. Some of these scams also include fake celebrity accounts promoting the giveaway to lure people in.

However, when someone clicks on the giveaway, they are taken to a fraudulent site asking for verification to receive the bitcoin. The verification process includes making a payment to prove the account is legitimate.

The victim can lose this payment — or, worse yet, click on a malicious link and have their personal information and cryptocurrency stolen.

7. Ponzi schemes

Ponzi schemes pay older investors with the proceeds from new ones. To get fresh investors, cryptocurrency scammers will lure new investors with bitcoin. It’s a scheme that runs in circles, since there are no legitimate investments; it is all about targeting new investors for money.

The main lure of a Ponzi scheme is the promise of huge profits with little risk. There are always risks with these investments, however, and there are no guaranteed returns.

8. Fake cryptocurrency exchanges

Scammers may lure investors in with promises of a great cryptocurrency exchange — maybe even some additional bitcoin. But in reality, there is no exchange and the investor does not know it’s fake until after they lose their deposit. Cryptocurrency uses blockchain for verification and does not run through financial institutions, so it is harder to recover from theft

Stick to known crypto exchange markets — such as Coinbase, Crypto.com and Cash App — to avoid an unfamiliar exchange. Do some research and check industry sites for details about the exchange’s reputation and legitimacy before entering any personal information. Bitcoin and Cryptocurrency Scams

9. Employment offers and fraudulent employees

In order to gain access to bitcoin accounts, scammers will often pretend to be recruiters or job searchers. By using this trick, they provide a compelling job while demanding cryptocurrency in exchange for work training.

Scams involving the use of remote employees exist as well. For example, North Korean IT freelancers are attempting to take advantage of remote job opportunities by putting up outstanding resumes and stating that they are based in the United States. The North Korean fraud that targets cryptocurrency companies was alerted to by the US Department of the Treasury.

These IT freelancers seek projects involving virtual currency and use access for the currency exchanges. They then hack into the systems to raise money or steal information for the Democratic People’s Republic of Korea (DPRK). These workers also engage in other skilled IT work and use their knowledge to gain insider access to enable the DPRK’s malicious cyber attacks.

10. NFT Scam

Nonfungible tokens, or NFTs, are one of the hottest investment trends right now, due to the high prices being paid for everything from internet art to LeBron James highlights on NBA TopShot. NFTs are digital tokens that reside on the blockchain and can be exchanged between users or marketplaces and use a bitcoin mining machine. While the picture or video in the NFT can be easily replicated, the hashtag code that points to the NFT’s position cannot.

When it comes to crypto, however, ownership is ten-tenths of the rule, and whoever has the hashtag has the power. You’ll have a hard time getting your NFT back if your account is compromised and the NFT is passed to an outside customer. Scammers also take advantage of the potential for big profits by selling fake NFTs to potential buyers. Scams involving NFTs are on the rise; just buy them from reputable sources and use two-factor authentication wherever possible. Bitcoin and Cryptocurrency Scams

How to Avoid bitcoin and cryptocurrency scams

To protect against bitcoin and cryptocurrency scams, here are some of the common red flags:

• promises for large gains or double the investment;
• only accepting cryptocurrency as payment;
• contractual obligations;
• misspellings and grammatical errors in emails, social media posts or any other communication;
• manipulation tactics, such as extortion or blackmail;
• promises of free money;
• fake influencers or celebrity endorsements that seem out of place;
• minimal details about money movement and the investment; and
• several transactions in one day.

Practice excellent digital security habits like using strong passwords, only secured connections or VPNs, and selecting safe storage to defend digital wallets from scammers. Wallets come in two varieties: hardware and digital. Because they are housed online, digital wallets are more likely to be compromised. Hardware wallets enable offline storage of data on a device, including the bitcoin wallet and keys.

Keeping cryptocurrency secure is essential because it is not covered by the Federal Deposit Insurance Corporation. Never divulge access codes or wallet keys to anyone.Bitcoin and Cryptocurrency Scams

DO YOU NEED MONEY TO FUND YOUR BUSINESS AND LIFESTYLE?

This is a serious business and not for kiddies or time wasters. Get instant money transfers to your bank account, Cashapp account, Paypal, Western union, Revolut and unlimited funding, up to $10M in a single transfers to your business associates and trading partners for 90% less the amount.

What you can achieve with our bank transfer service is unlimited unless you don’t know how to do business or probably spend money.

TELL US HOW YOU WANT YOUR MONEY AND WE WILL SEND IT TO YOU. We offer the best reliable on-time  money transfer services. Receive same day transfer for any amount you click below via Bank account, Cashapp, PayPal, Western union & Venmo. For Transfers above $100k USD kindly Contact us our support.

GET INSTANT BANK TRANSFER

GET INSTANT CASHAPP TRANSFER

GET INSTANT PAYPAL TRANSFER

GET INSTANT VENMO TRANSFER

CONTACT SUPREME EXPLORERS TODAY, WE OFFER THE BEST SERVICES