The Latest Bitcoin Scams and How to Avoid Them
As Bitcoin grows in popularity, the latest Bitcoin scams have become even more sophisticated. Bitcoin is decentralized and unregulated, and unfortunately, some people take advantage of the lack of enforced security. There have been several Bitcoin scams in the past, and there will likely be more in the future. As Bitcoin makes its way to the mainstream, hackers and scammers will only work harder to steal from cryptocurrency novices.
The Top 5 Latest Bitcoin Scams
Viruses and Malware
This method is an old-school way that scammers try to access information, but it still affects many people. Scammers can send a virus through an email, and sometimes even unsecure website links can house viruses or malware. All the user has to do is open the email or click the website link, and that’s enough for a scammer to gain access to a user’s Bitcoin wallet. Virus protection can protect against this, but other types of malware can gain access to your computer. It’s essential to use secure apps and also have two-factor authentication to get into your wallet.
Fake Exchanges
Some scammers may create a fake company with a name similar to an established company. They’ll then pretend to be a subset of the company to lure investors and then take their money, which happened in 2017 in South Korea. The established company was called BitKRX and the scam company KRX. These scammers will likely be aggressive when trying to get you to use their exchange platform and convince you that you’ll see higher returns if you invest with them, which is not something that can be promised with any investment.
Social Media Scams
With Bitcoin’s increased popularity in 2021, Bitcoin users should now be on the lookout for social media scams. Earlier in 2021, some hackers posed as Elon Musk, who recently invested $1.5 billion into Bitcoin. The hackers posted a link to a Bitcoin wallet offering to double the amount of Bitcoin sent to the wallet. Musk did not post this wallet, and several people were out of their Bitcoin. As social media grows and continues to be a force globally, be mindful of people who are offering free cryptocurrency.
This type of scam also happened in 2020. Scammers hacked into people’s Twitter accounts and asked for payment in the form of Bitcoin. Well-known companies like Apple and Uber got hacked and celebrities like Bill Gates and Floyd Mayweather. The hackers tweeted from these accounts asking for followers to send money to a specific wallet address. They claimed that they would double what was sent and send it back as a charitable donation.
DeFi Rug Pull
Defi rug pulls are very similar to fake exchanges. Because Bitcoin and other cryptocurrencies are decentralized finance, scammers can create counterfeit companies and pretend they are legitimate. These phony companies put in the effort to look legitimate and then convince users to entrust all of the cryptocurrency with them. Again, similarly to fake exchanges, they will promise high investment returns, which cannot be guaranteed. The scammers will also enter investors into contracts, allowing them to easily steal investor’s Bitcoin without them figuring out who did it or getting it back.
Pump and Dump
This Bitcoin scam occurs when a scammer encourages multiple people to invest in the currency to increase the price. When the price is high, the scammer pulls out. Once people begin to notice the price drop, many people start to cash out their investments, and ultimately the scammer makes a lot of money. Multiple “investors sometimes operate these schemes,” or sometimes only one person is running the show.
How To Avoid the Latest Bitcoin Scams
Now that you are familiar with Bitcoin scams, you can learn how to avoid them. Many of these scams seem like they’re too good to be true, and they are. If you see someone promising free crypto on social media or demanding that you send them money to a specific wallet, they’re likely a scammer.
The easiest and most important way to protect yourself from the latest Bitcoin scams is to secure your Bitcoin wallet. A cold wallet is the safest place to secure your Bitcoin, as they are offline. Hot wallets are less secure, but if you have two-factor authentication, your Bitcoin is more secure.
To avoid social media scams, take any giveaway you see with a grain of salt. Any large company or celebrity that claims they are giving away crypto or asking for money via a social media network has very likely been hacked. If they do a promotion involving cryptocurrency, check their website or another social media platform. It’s likely they’ll be talking about it across all profiles instead of just one. Additionally, you should do your due diligence for a company that claims they are a cryptocurrency exchange platform. Use your favorite search engine to figure out if they are legitimate and secure before investing your money into it.
When protecting your Bitcoin, also consider learning more about cybersecurity. Bitcoin is entirely online and runs through blockchain technology. Learning more about how blockchain works and cybersecurity, in general, can help keep your Bitcoin safe.
Purchase Bitcoin Securely with Pelicoin
Pelicoin is a Bitcoin ATM service with locations all around the Gulf South. You won’t find a safer place to dip your toe into the cryptocurrency world and make your first Bitcoin transaction. Pelicoin ATMs are incredibly user-friendly and often located in gas stations or convenience stores that are open 24/7. We want to ensure that you can purchase your cryptocurrency at any point of the day.
Pelicoin offers a secure location to purchase or cash out your coins. You have the options of Bitcoin, Ethereum, or Litecoin. Find one of our many Pelicoin locations to make a secure purchase and avoid the latest Bitcoin scams.