Bitcoin Scams on Social Media: How To Stay Safe?

Social networking has become a potent tool for businesses—and, regrettably, con artists. It’s the simplest way for a stranger to contact you, even if they don’t use a legitimate account.

Although these businesses fight fraud, it’s just too simple for anyone to misrepresent your profile. It is easy to assume someone else’s identity or create a new one in minutes.

Social media becomes risky when so many con artists are just a few clicks away trying to acquire your money.

Why Do Bitcoin Scams Exist On Social Media?

Scammers prefer to steal your money anonymously without leaving any trace behind for you to take action. To make this possible, they resort to bitcoins. And what better than social media to advertise Bitcoin scams.

  • E-commerce fraud: They pose as a seller and provide counterfeit goods. As a buyer, they can submit a phony refund or return.
  • Phishing: They pose as your security bot for social media. They claim that your account has “security concerns,” and lead you to a phishing website that requests your details.
  • Money-making schemes: They advertise investment possibilities with lofty claims and up-front fees.
  • Advance-fee scam: They offer you a gift for a “refundable” up-front cost.
  • Financial fraud: They connect with buyers on several P2P platforms and invite them to social media. So they are unable to request assistance and receive no purchase protection.

Types of Bitcoin Scams on Social Media:

Social media provides bitcoin scam artists with an easy target for unsuspecting users. Many individuals don’t know how bitcoin works, even though millions of people are entering it. So, if there does exist a con artist, they are less likely to be discovered.

Here are six ways that people are being conned today:

The Giveaway Scam

We frequently see posts about prizes on other social media sites, most of which come from Instagram & YouTube. You can enter the giveaway’s drawing by following, liking, or commenting on the post to win free food, designer clothing, a concert ticket, the opportunity to test their products, more followers, or another significant gift that enhances their brand value. While honest giveaways do exist, one should not entirely eliminate the possibility of it being a scam. Make sure that the account that has posted the giveaway is verified. 

Imposter Comments

You can find a response to practically every comment if you visit any respected channel. It’s a profile that shares the host’s name and photo and responds to everyone else with the same statement.

On YouTube, it is now the most contagious disease. Con artists have programmed these bots to respond as soon as a video is released. And ultimately, even though they rarely succeed, someone falls for it.

They are identity thieves, and there is nothing anyone can do to stop them. Even while reporting is effective, just one gets banned out of the numerous fraudulent accounts created daily.

If you follow the instructions, you’ll be led straight to a scammer on a network like WhatsApp or Telegram. You can use your imagination to choose what they do after that: Work-from-home opportunities, money-making schemes, advance-fee fraud, and phishing.

Con artists get in touch with you first using the stolen identity if you participate in social media groups.

Phishing & Security

Sending false messages that seem to be from a reliable source is known as phishing. Typically, email is used for this. The intention is to steal private information, such as login and credit card numbers, or to infect the victim’s computer with malware. Everyone should become knowledgeable about phishing to protect oneself from this ordinary sort of cyber assault.

Pump & Dump Groups

Whether or not pump-and-dumps are frauds is up for debate. Essentially, a trader announces that they will purchase a coin. Ideally, you buy it before the pumper, receive your ROI, and go immediately. But this is not always the case. These “traders” often pump up an asset and want you to catch on and buy it. When this leads to a rise in the price of the asset, they sell their investments, causing a drop in the price. And you are left with nothing. 

Money-Making Schemes

Since we’re on social media, nothing works better than social scams—and pyramid schemes in particular. First, they persuade someone to spend money, then make them bring in other people who are ready to spend.

They acquire so much popularity because they are ludicrously simple to earn from initially. But, ironically, popularity also makes it less effective. Perhaps it is too late to join if you discovered the opportunity through an advertisement or public group.

Payment Theft

You will ultimately experience this if you purchase and sell online. The other party will want to continue the business on social media after accepting the offer. Since you aren’t paying brokerage fees anymore, you will receive a more affordable offer outside the platform. However, then you will encounter various errors but you cannot reach out to the platform for help because payment fraud is no longer the platform’s fault. 

How to Prevent Bitcoin Scams on Social Media?

Always research before investing:

 It’s crucial to research cryptocurrency exchanges before investing your time and money in them because new coin varieties are constantly emerging. It entails asking questions about conversations you’ve never heard of before and checking to see if they’ve ever been linked to complaints or scams.

Keep in mind that no fee requires cryptocurrency

Requests to be paid in bitcoin are among the most significant warning signs of a bitcoin scam. Of course, it would help if you never had to pay with bitcoin because it is not fully regulated by the government and is not yet generally accepted by companies. However, if someone, even a trusted internet connection, pushes you to do something that should be a significant red flag that you might be a victim of fraud.

Disregard urgent requests

Urgent payment requests are a big warning sign of bitcoin scams, mainly if they are unsolicited. It’s better to label these requests as spam or to remove them as soon as they arrive in your inbox. Have faith that if a loved one or authority genuinely requires money from you quickly, they will find a way to contact you, and it probably won’t be by asking you to pay with bitcoin.

Avoid “get wealthy quick” schemes

It can be tempting to seize a chance to become wealthy quickly. However, keep in mind that bitcoin is an investment in and of itself. Therefore, any unsolicited chances presented to you containing “guarantees” or “promises” of financial gain are scam prospects. 

Immediately report any suspicious activity

Reporting bitcoin scams can keep exchanges secure for all users if you believe you are the target of one. In addition, bitcoin scam recovery firms will help you to recover your funds.

Financial investments already carry enough risk. Dealing with con artists and the barrage of cyberattacks they launch adds on to the concern. 

Conclusion:

Sadly, bitcoin scams have migrated into your social media feeds as cryptocurrency investing has become mainstream.

Investments in cryptocurrencies are primarily unregulated, and there aren’t many safeguards in place to protect customers from fraud. Fortunately, resources help you recognize and prevent common bitcoin scams.