How to avoid the latest Bitcoin scams

How to avoid the latest Bitcoin scams

During the first quarter of 2020, more than $24 million worth of cryptocurrencies were stolen by Bitcoin scammers. The report that was published by Whale Alert, shows how persistent scammers can be despite a global economic crisis. Besides educating the community about exciting opportunities in the crypto industry, AltCoinTrader takes safety and security seriously. Here are a few tips on how to avoid the latest Bitcoin scams.

Latest Bitcoin scams

There are various ways scammers try to steal your cryptocurrencies. These schemes range from fake exchanges, Bitcoin recovery, Ponzi schemes, video scams, malware, fake tumblers and fake ICOs. Fraudsters aim to lure people into giving control of their cryptocurrencies to ruthless third parties who aims to enrich themselves.

Previously scammers would send phishing emails and SMSs, and pose as “customer support” of fake enterprises. The latest scam involves celebrities giving away cryptocurrencies as in the case of the Elon Musk BTC giveaway scam.

A fraudster posing as Elon Musk recently scammed millions of dollars from investors after promising them a cryptocurrency giveaway. YouTube videos and Twitter posts promised 5 000 — 10 000 BTC giveaway if viewers send Bitcoin immediately.

In South Africa, CEO of cryptocurrency investment firm VaultAge Solutions, Willie Breedt stands accused of defrauding 2 000 investors. An investigation by the Hawks revealed more than 2 000 investors paid Breedt R227 million to invest in Bitcoin and other cryptocurrencies. Breedt is accused of fleeing after failing to repay investors. As a result, the Gauteng High Court in Pretoria forced him into bankruptcy.

Watch out for deepfake scams

It is only a matter of time before scammers will use deepfakes to scam the market. Deepfakes are synthetic media whereby an existing video or image can be replaced with someone else’s voice or image. This is done by means of artificial intelligence and machine learning. The system manipulates visual and audio content with the intention to deceive the audience. Deepfakes can be used to commit financial fraud, spread fake news and hoaxes. A good example of committing fraud with deepfakes is when a scammer uses audio deepfake technology to impersonate someone that is close to you. The voice may give you instruction to transfer funds into a specific bank account. It fools people into doing what trusted individuals ask of them.

It is clear that scammers are resorting to newer technologies to increase their effectiveness. These professional Bitcoin scammers prey on COVID-19 slowing down economies and investors desperately seeking good investment opportunities.

Here are a few helpful tips to protect yourself against cryptocurrency scams:

  • Don’t share your personal information with unreliable sources. Never give away your Private Keys, credit card information, ID number or birthday.
  • Don’t open emails without verifying the sender’s email address. Phishing emails are still a popular tool used by scammers.
  • If you are considering an investment, take some time to think it through and ask someone you trust their opinion. The minute someone starts pressuring you to deposit your money by offering a limited time special, they are up to no good. Also, if it sounds too good to be true, it usually is.