Bitcoin scams occur when individuals or organizations try to deceive or manipulate unwitting victims into sending them Bitcoin (or revealing a pathway to their cryptocurrency wallet). Crypto scammers aren’t all that dissimilar from your average financial con artist. They often promise unbelievable discounts or huge profits to make eager investors feel like they have nothing to worry about. The customers then send their cryptocurrency to someone else or invest it on the scammer’s “platform.” When the fraudster has the cryptocurrency, they disappear, leaving the victim with nothing.
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How to Spot Bitcoin Scams on social media platforms:
Regrettably, there is a rising market of junk and trash on Instagram from people offering get-rich-quick plans through various types of Bitcoin scams. In addition, people are constantly lamenting the loss of their Facebook account to one of the scams outlined below, covering scams across the social media platform:
Big wins, short timespan: Pressure to transfer money as soon as possible and promises that you’ll make significant returns on little investments quickly are also warning signs. Run away if someone you know starts bragging about how much money they’re making because of their “Bitcoin mentor.” Another often used fraud involving compromised accounts is this one.
Send me the money: Similar to the last point, if someone asks you to acquire cryptocurrency and send it to their wallet to “invest,” you’ll probably wind up with nothing but an empty wallet.
A cryptocurrency hostage: Many movies making ludicrous claims about Bitcoin’s success are unsettling hostage footage. Here, victims of financial scams are fooled into appearing in their commercials, promoting their con, before the victim has discovered it.
A change in circumstances: Be wary if you were requested to alter your login information or email address to something someone else has provided you. In this case, you’ll just be locked out of your account and the scammers will use it to spam others.
When profit is taxable: It’s like one of those messages that you got, asking you to begin with a $1,000 deposit and purportedly end with a $15,000 gain. Sadly for the victim, the con artist demands a $15,000 “tax payment” if they want to release or withdraw the money they had invested. Unfortunately, even after paying the taxes, the initial $1,000 or promised gains are not reimbursed.
Most popular Bitcoin scams on Instagram:
Con artists have turned Instagram into a sanctuary, luring victims with promises of immediate fortune through Bitcoin scam investments.
Pump-and-dump schemes:
Con artists employ pump-and-dump schemes to steal bitcoin from their victims. Pumping refers to a growth in a security’s price or worth, whereas dumping is selling shares at a profit before anybody else can sell them. These schemes use false or misleading information to manipulate the value of securities and to make quick money. Clues that you are dealing with this scam can be anything that seems too good to be true, like assertions that the source has inside information, has made millions from mining or trading bitcoins, has offered free money or gifts in exchange for bitcoins, etc.
Your personal “crypto teacher” scams:
With little funds, scammers may advertise “crypto courses” or “teachings” on how one can start trading profitably immediately. Given that there are no shortcuts to understanding how to trade cryptocurrencies, you should always be wary of offers that claim you can succeed quickly and with little effort.
Fake giveaways:
One of Instagram’s most prevalent forms of cryptocurrency frauds is fake giveaways. The con artist invites customers to transfer a small amount of money while displaying an image promoting the promise to obtain free bitcoins or other tokens. In some cases, they’ll even share screenshots of the transaction as proof that they received your money. However, they never honor their commitment to return any coins.
Impersonation scams:
It is the most prevalent kind of scam and has been observed on various social media sites. As the name implies, scammers pose as well-known celebrities and make extravagant claims to entice users. For example, refer to the phrase “Deposit cryptocurrency to enter a lottery.”
Currency exchange:
Some Instagram accounts publish content regarding “get rich quick” schemes. They discuss how granting access to their funds can result in a substantial payment. Users are persuaded that it is genuine due to its lovely and authentic appearance. Additionally, to mainly target those interested in something like this, scammers send direct messages to those who follow banks or other financial accounts on Instagram.
Pyramid schemes:
This particular scam has existed since the beginning of time. Therefore, the Instagram pyramid schemes are comparable to other frauds we have all encountered. Simply put, con artists persuade users to become investors by emphasizing how their income would rise in proportion to the number of new users they can attract to the network. Such a plan, also known as multi-level marketing, does bring in a profit for the early investors, but everything falls apart as soon as the original con artists leave.
How to protect yourself from Bitcoin scams:
Bitcoin scams are common and often cunningly executed. You can take the following actions to protect yourself:
Protect your wallet: You need a wallet with private keys if you want to invest in cryptocurrencies. However, it’s pretty likely fraud if a company requests your keys when you take part in an investment opportunity. So secure the keys to your wallet.
Take your time: Scammers frequently employ high-pressure techniques to persuade you to spend your money immediately, such as by proposing bonuses or discounts if you do so directly. Therefore, take your time and conduct independent research before making any purchases.
Be wary of social media adverts: Crypto fraudsters frequently advertise their fraudulent schemes on social media. To provide the appearance of authenticity or to offer promises of freebies or free money, they may use unlicensed images of famous persons or successful business people. So when bitcoin investment opportunities are promoted on social media, use a healthy dose of skepticism and do your homework.
Avoid cold calls: It’s a fraud if someone reaches you unexpectedly to sell you a cryptocurrency investment opportunity. Never offer your cash or personal information to anyone who contacts you in this way.
Conclusion:
Although there are many different Bitcoin scams, the outcome is frequently the same. Hackers and cybercriminals use tricks to access your account or convince you to transmit bitcoin to their blockchain address. They might accomplish this by impersonating, phishing, or even gaining remote access to your device.
