Cryptocurrency is a concept that is becoming popular across the world. As a result, people are quickly warming up to the idea, but most people still have no idea how it works. Bitcoin is one of the most popular cryptocurrencies. It was invented in 2008 by Satoshi Nakamoto. Since it uses software to operate, it is an easy target for scammers and fraudsters who understand the ins and outs of cryptocurrency. There has been a recent surge in Bitcoin scams that exploit the fact that there is little genuine information about cryptocurrency.
This year, bitcoin scams have reached a new high. Here are some of the ways that you can be trapped by the notorious bitcoin scams of 2020.
Bitcoin Sextortion Scams
One of the common bitcoin scams is sextortion tricks. The scammers claim to have a video or images of you in compromising sexual situations. You receive an email alerting you that they have placed malware on your computer. If you happened to visit adult sites, they claim to have footage of you. The malware is supposed to have recorded you secretly without your knowledge. They tell you to pay them a certain amount so that they can delete the footage.
They also claim that they will send the footage to your contact list if you do not follow their orders. They then send you a guide on how you shall pay them via bitcoin. Surprisingly, many people have fallen into this scam. Especially young people who frequent compromising websites.
If you get an email like this, don’t panic. They have no video on you, it’s just a scam.
Fake Bitcoin Exchange Scam
The year 2020 has experienced an explosion of activity in the investment markets. The COVID 19 pandemic has caused uncertainty in the investment markets. Many people have tried to get involved with cryptocurrency only to be scammed by a fake exchange. Since there is no regulatory body to oversee the exchange process you are often putting yourself at high risk.
This year alone, cryptocurrency fraud has taken over $381 million from unsuspecting victims. According to Naira metrics research, one scammer made over $1.5 million in six months using a fake crypto exchange website.
Hardware Wallet Theft Scams
A hardware wallet is a physical device that stores software keys. They come in USB drives that backup data from your computer. People use them to store sensitive information offline. Bitcoin scammers have built-in malware that steals and transfers your information to their websites.
They can also send you malware that copies info from your hard drives. On July 31, 2020 three individuals hacked twitter and asked people to send bitcoin to a specific cryptocurrency wallet. Within minutes, the scammers had made over US $110,000.
Bitcoins are mined uniquely. It is a process that takes a lot of computer power which many can’t afford. So, some scammers sell you the idea of renting a server and space to help you mine for bitcoin. They ask you to pay for these services and make bold claims of making your mining easier. However, all that happens is you subscribe and pay for a fake service.
Multilevel Bitcoin Scammers
Many multi level marketing gurus are hiding behind the bitcoin idea. They offer enticing investment opportunities with unusually high returns. They say they can turn your $100 into $1000 within a few days. But before you know it, you are on TV with millions of other people who have made them very rich.
Remember what we said earlier, if an offer seems too good to be true, it is likely a scam!