According to security magazine a total of $1.9B in Cryptocurrencies in form of ethereum and bitcoin, among others were stolen, in 2020. This was a down ward trend from $4.9B stolen the previous year.
That said; we take a look at some of the common Bitcoin fraud cases that have crossed over from 2020 to 2021.
1. Crypto theft
It’s no secret that crypto theft through hacking has been there since the invention of cryptocurrencies. Hackers have always utilized sophisticated software to gain access to user accounts to steal bitcoin assets.
Unfortunately, the vice is still with us, especially with technological advancement and the rise in bitcoin value.
2. Crypto pump-and-dump schemes
Crypto pump-and-dump initiatives are usually developed by scammers to exploit enormous profits from people. To put things into action, top influencers are usually tipped by fraudsters to sway people into purchasing a particular digital coin to increase its value.
When the value is at its max the scammers then cash out their holdings; as a result, lock in huge profits.
Woe unto you if you join the market later in the cycle as you’ll be stuck with assets that do not have a buyer.
3. Social media cryptocurrency scams
Such types of bitcoin frauds usually take place on social media platforms, as their name suggests. Here, you’ll receive a fake social media advertisement or post requesting payment in form of Bitcoins.
To convince you, the sources can include some engineered reviews to lure you into paying the requested amounts.
In other cases, hackers can use your friends or relatives hacked account to send you these types of messages or posts.
Social media influencers can also use respective platforms to spread word regarding a false cryptocurrency and urge followers to sign up.
Alternatively, ask the followers to send them Bitcoin assets so that they can multiply them. However, pocket the monies at the end of the day.
4. Extortion or blackmail Bitcoin frauds
This one, as well, constitutes one of the old tricks used by scammers when extorting individuals. In this case, you might receive an email telling you that someone has incriminating information against you—for example, crime evidence, or obscene photos of you or videos, among others.
Therefore, request you to make some payments in Bitcoins, or they spill the beans.
5. False apps Bitcoin frauds
With the sharp rise in smartphone usage, more and more cryptocurrencies are developing different applications for their users. However, cybercriminals are replicating them with malicious intentions.
As a result, you can ignorantly or accidentally download these counterfeited apps as a user. And in so doing, send your hard earned cash to a fraudster.
Some red flags for an in genuine app include things like bogus branding and misspellings in the app description or name.
Bitcoin frauds are increasingly becoming more common, as well as advanced. The advancement in technology, as well as the lucrative nature of Bitcoin, can explain these occurrences.
This implies that you should always be on the lookout lest you become a victim.
At Anticrptofraud we can help you recover 100 percent of your crypto assets, as long as you provide us with all the required information. For instance, the hashes used on the call off transaction before your funds were stolen. Contact us today for a speedy recovery of your treasures.