The fast-changing pace of the cryptocurrency market has influenced many of the new investors in the market. Currently, the interest of retail investors, institutional investors, and speculators has shifted towards the profit-making bitcoin market. This also attracts the interest of scammers leading to bitcoin scams. Also, the decentralized nature of bitcoins leads scammers to execute evil plans.

Federal Trade Commission’s Consumer Sentinel stated that the reports of crypto and bitcoin scams have shot up to 7,000 people who have reported losses of more than $80 million. This figure contributes to the time period of October 2020 March 31, 2021. Apart from this, the number reflects a 12-time increase in the reports as compared to the last year in the same time duration i.e October to March, showcasing a nearly 1,000% rise in reported losses.

Considering the rising in Cryptocurrency and Bitcoin scams, investors are required to be aware of the common types of scams and different ways to avoid them and prevent themselves from becoming the victim.

Frequent Bitcoin Scams That Takes Place –

  • Social Media Phishing Scams –

This is one of the most common bitcoin scams where scammers create a professional-looking account. The account here looks like a high authority bitcoin space and offers you fake giveaways with means of tweets or direct messages. The investors are required to double-check the accuracy of the information and look out for the blue ticks that indicated the credibility of the social media account.

  • Phishing E-mail –

It is also one of the most common ways to trick investors. You are requested to download an infected file or click a link that leads you to a malicious website that appears to be legitimate. The ultimate goal of the scammers here is to your login credentials to try and hack your account. Users can check the original source of email to identify threats on the website.

  • Ransomware –

Ransomware is kind of a malware that restricts the investment to use their mobile or devices. It prevents them from accessing valuable data until a ransom is paid in the form of Bitcoin. It blocks the important files and sometimes even threatens you to delete the important information if the payment is not paid before the deadline.

  • Romance Scams –

Scammers here, take the opportunity of dating websites. They convince the victims that they are in a real long-term relationship. Later on, ask the victims to transfer either coins or account credentials. Investors should be careful enough before sharing their personal information related to accounts with someone online.

Conclusion –

As the popularity of Bitcoin continues to increase, it will remain the top focus opportunity for scammers resulting in increased bitcoin scams. There are plenty of Cryptocurrency scams to watch out for. By considering the early warning signals and common ways of scams, investors can easily recognize a crypto-related scam and keep their crypto holdings safe and sound. The people who have already fallen prey to these scammers and looking out for help can connect with several fund recovery agencies and concerned authorities. These entities help people in every manner possible to get their lost crypto back.

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Also, read about Forex Scams here.