A Bitcoin scam is a form of Cryptocurrency scamming.
The Bitcoin Trade launched in 2009, and the first commercial trading for Bitcoin was in 2010. As of 2024, Bitcoin has surpassed over $700 Billion.
Bitcoin attracts many investors, but as with all investments, it also attracts many criminals. Not all Bitcoin investments are run by scammers or are fraudulent.
The various ways in which a Cryptocurrency scammer will try to contact you and lure you in are listed below:-
- Receiving contact from someone electronically (via email, social media or SMS)
- Social media advertisements or influencers
- Advice from Family/Friends who are being scammed unknowingly
- Impersonators telling you to deposit your current investment into their investments.
- Online fake romances
- Guaranteed high returns on your investment.
- The documents you receive from the investment are not written professionally.
One of the first fraudulent Bitcoin schemes was recorded in America. It was a man by the name of Trend on Shavers who created his own fraudulent financial institution called Bitcoins Savings and Trust. Judgment was passed on to him in 2014. He was accused of using a Ponzi Scheme to obtain 700,000 bitcoins fraudulently.
The above is just an example, but there are plenty of scams under the heading Bitcoin.
- Phishing Websites –When you enter your details, the scammer will capture that information and use it to their benefit.
- Investments – You invest in Cryptocurrency with the promise of high returns.
- Online Cryptocurrency Fake Platforms –Fake Apps the Scammer will ask you to download from their websites – they sometimes can be located on Google and Apple Apps as well but these companies work tirelessly to ensure these fake apps are taken down promptly
- Celebrity endorsements – How many have you seen on your social media today?
- Blackmailing – Another form of Cryptocurrency scam is the perpetrator will also try to blackmail you, saying they have your personal information and demanding money in cryptocurrency.
These are just a few examples of cryptocurrency scams that defraud weary investors.
If someone contacts you in regard to cryptocurrency and you have questions, call the National Inquiry Agency as they have the skills and investigative techniques to inquire about the company for you.
