To combat the rise in monetary inflation, which is intensifying in particular in the wake of the pandemic, many people are now considering investing their savings in cryptocurrencies such as Bitcoin or Ethereum. Extreme caution is required if you do not want to fall victim to cryptocurrency and bitcoin scams.
But what steps should you take to spot and avoid falling victim to a cryptocurrency and bitcoin scam?
In today’s article we are going to talk about this! We’ll try to figure out what the most common types of scams are, how to spot a scam, and how to save your money from malicious scammers.
Let’s leave all the preliminaries aside and get to the heart of the matter!
Is Bitcoin a scam?
Let’s start with one of the most frequently asked questions by newcomers: Is Bitcoin a scam?
The truth lies somewhere in the middle: there have been several bitcoin-related scams in the past, and unfortunately, scams related to BTC and other digital currencies still exist today.
Cryptocurrencies are not in themselves a scam; however, it is an investment that should be treated with caution as it is subject to high risk speculative phenomena.
Outside of the market, however, there are various fraudulent schemes that attempt to capitalize on the popularity of cryptocurrency.
In all these cases, the connection to Bitcoin is entirely fictitious. In fact, scammers are using Bitcoin’s reputation and brand to lure the unwary with systems that pose as cryptocurrency bots but have nothing to do with the original design of the market’s leading cryptocurrency.
All of these schemes are actually just scams like B. Bitcoin Code, which are designed to take investors’ money and quickly disappear into inaccessible offshore accounts.
Needless to say, the official Bitcoin project and its BTC token have nothing to do with these “miraculous” methods of making money.
The main problem is that one cannot even talk about the risk of losing the invested money (whether large or small sums), because when turning to these providers, such a result is a bitter certainty.
This means that extreme caution is required.
However, Bitcoin is not a scam: those who profited from Bitcoin easily made huge profits.
How to see bitcoin scams?
Now that we understand that Bitcoin itself isn’t a scam, we also understand that all that glitters isn’t gold! Indeed, there are many scams related to the world of bitcoin and crypto and at this point many of you are probably wondering: how to visualize bitcoin scams?
Don’t believe anyone who contacts you and promises you a secure win
Are you frequently contacted on social media by fake financial advisors who promise you huge profits and safe returns by investing in cryptocurrencies?
If you answered “yes”, then you need to be extremely careful because many of these people are “scammers” who just want to steal your money – it would be a shame to lose it.
Blacklist of bitcoin scams
In our experience, a “cheater” is someone who promises you big profits and safe returns by buying or trading cryptocurrencies.
You should be aware that there are no safe investments or returns in the world. So, if a self-proclaimed financial advisor promises you this, they are most likely a scammer and you should avoid them at all costs.
Another strategy is to take advantage of a celebrity’s image. In practice, a celebrity’s notoriety and notoriety are used to gain consumer trust and steer them away from anything that isn’t obvious and/or safe.
Contrary to popular belief, it can be difficult to spot a fake social media post, message or video, as scammers sometimes use stolen photos of well-known people to lend more legitimacy to their scam tactics.
Incidents of verified accounts being hacked are not uncommon in order to give the appearance of legitimacy by giving the impression of a known person.
Little-Known Web Platforms and Apps
Another level of fraud can be asking the consumer to download an app or deposit money on a platform. However, scammers use it to monitor the client’s financial situation and obtain access data for Internet banking services.
The scammer then starts withdrawing small amounts of money and gradually increases the amount withdrawn up to tens of thousands of dollars. In most cases, at this stage, the client realizes that a large sum of money has disappeared from his account, after which the scammer offers to recover the sum in a short period of time. However, this is not the case as the losses will increase after a few months.
If you cannot find any information about the platforms and applications offered to you, be very careful!
The most common types of scams
We’ve seen three key things that can help you spot scammers and bad guys who just want to steal your money, but there’s a lot more to know.
The world of scams is very diverse and there are very common types of scams carried out by many different people.
By knowing these types of very well-known scams, you can spot them immediately and avoid them without any risk.
Let’s take a look at some of the most well-known types of scams:
Phishing is a scam that is rampant on the Internet, and not just in cryptocurrencies. Phishing is when malicious people send you messages or emails that appear to come from services or websites you have used before (banking, e-commerce, social networks, etc.) and ask you to click on a link to click or provide personal information.
When it comes to cryptocurrencies, phishing scammers can hijack your wallet passwords or seed phrases and thus steal your cryptocurrencies.
Generally, phishing messages can be identified by the fact that the profiles they send are incompatible with the services they are trying to impersonate.
Although scammers may create messages and websites that closely resemble the originals and are therefore convincing, certain details such as syntax or grammar errors are indicators of a possible scam.
It’s always a good idea to check that website URLs or email addresses match official websites, even one character up or down can make a difference.
2. Fake customer service representatives or merchants
Under the guise of trying to troubleshoot technical issues, someone impersonates a representative of a crypto organization or firm and requests sensitive information such as the seed phrase. After getting the secret key, the crooks drain your funds. Scammers may also offer to pay them money in exchange for better value.
These calls are usually made with a sense of urgency to alert people concerned about the safety of their assets. Remember that all official communications are always made through official channels; don’t rely too much on rumors or speculation. If you have any questions, please contact customer service through the official website.
Another group of people dishonest people can imitate are phone company representatives who promote new contracts or SIM card changes. They can defeat any two-factor authentication methods that rely on your phone number if they have one.
Some also claim to be experienced traders who want to help you. In this case, scammers can contact you through social networks or online groups like YouTube or Telegram. How to spot a cryptocurrency scam? Fake traders are easy to spot due to their exaggerated claims.
Beware of people who promise to make you extremely rich* in a short time; there are no shortcuts or “sure ways” in the world of cryptocurrency.
3. Pull the Mat
Scammers promote a new initiative, raise funds, and then disappear into a carpet with the collected funds. The Squid Coin scam, named after the Netflix comedy, was a recent example of rug pulling.
Those who bought the token during the price spike from one cent to $90 lost everything when the project founders went bankrupt and the money, estimated at $3 million, disappeared.
To defend against carpet pulling, consider looking at the project from multiple angles, e.g. B. its solidity, the content of the white paper, the existence (and feasibility) of a roadmap and a business model, as well as the identities and CVs of the founders.
If any of these aspects are confusing or suspicious, you’re probably dealing with a scam.
What to do if you don’t report a bitcoin scam and get scammed
The easiest strategy to get your money back after being scammed on the internet is to file a full report with all the necessary documentation to help and facilitate the work of the police.
Once the investigation has been opened, the scammer has been identified and the money in the bank accounts has been discovered, the prosecutors will ask the judge for a preventive seizure of the money that the scammer has improperly received in exchange for the fraudulent investment promises that have been made.
Specialized computer law against Bitcoin fraud
Preemptive seizure freezes the money and the scammer can no longer access it. Once the money is frozen, you can ask the judge to return it to the rightful owner.
Thus, the money you paid to the scammer will be refunded to you. For more information, see the Preventive seizure and legal provisions page.
At the international level, there are several judicial cooperation agreements under which different law enforcement authorities share investigative information in order to fight crime and identify and punish perpetrators. Even if money has been transferred abroad, it can be traced and blocked thanks to international treaties.
Even if the recipient state is not a member of the European Union, in most cases there should be no problem: Italy has signed agreements with many states for judicial cooperation in the fight against crime and for the privileged exchange of information for this purpose.
Hire a lawyer specializing in IT law
Regardless of a criminal complaint, you should consult a lawyer specializing in computer law. It is important that you act quickly. The money path must be traced. A lawyer specializing in computer law will initiate all the legal and technical steps to recover your money. Police investigations are also supported by targeted information.