The cryptocurrency market is booming, but it’s also widely unregulated and lacks sufficient mechanisms to protect investors and speculators from scams. This explains why news about cryptocurrency scams and Bitcoin Scam News have been popping up everywhere. Many people try to make money from investing in new cryptocurrencies. This makes initial coin offers (ICOs) one of the most popular ways to defraud people. Moreover, some emerging cryptocurrencies use Ponzi schemes. To avoid falling into the trap of Bitcoin scams or any other cryptocurrency frauds, you should only use reputable and verified crypto exchange or trading platforms. You also need to stay up to date with news on crypto scams, so you can know what to look out for should you decide to invest in cryptocurrency. Count on DC Forecasts to learn about the latest cryptocurrency scam news you should watch out for.
1. Social Media Frauds
Fake Twitter accounts posing as renowned tech figures have reportedly been “giving away” free cryptocurrencies, especially Etherium. Elon Musk, CEO of Tesla Motors, called out the crypto scam epidemic after being entangled in it. How do the common Bitcoin scams work?
A well-known figure like @elonmusk posts a tweet.
A fake account with the same profile picture as @elonmusk comments on the tweet, proclaiming a giveaway.
The fraudster adds that you have to send 2-3 Ethereum to the stated address. They claim that you will receive 3-30 Ethereum as a reward.
Bots like, retweet, and comment that the giveaway is genuine as it worked for them.
Unfortunately, you won’t receive any Etherium back if you send yours.
This seems like an obvious trick, but many people have fallen for it. Never send money to someone who promises to reward you with a larger amount, even if the person appears to be well-known.
2. Bitcoin Scams Blackmail “Targeting Men”
On August 21, 2018, the Division of Consumer and Business Education of the United States Federal Trade Commission (FTC) published a report titled “How to avoid a Bitcoin blackmail scam.” In the report, the FTC focused on protecting consumers against what it called a “new scam targeting men.” The commission warned about blackmailing scams demanding payments in Bitcoin. How does the scam work? A scammer will send you a letter demanding payments in terms of bitcoins, with alleged consequences for not paying. The fraudster even goes the extent of explaining how to use bitcoin to make the payment. According to the FTC, the typical signs of blackmailing include:
Victims of these Bitcoin scams are advised to report it to the local police and the FBI. [read more="Read More" less="Read Less"]
3. Ethereum Scam App on Google Play Store
On August 21, 2018, The Next Web reported that Android’s Google Play Store had become a home for another Etherium scam application. Lukas Stefanko, a Slovakian malware researcher, discovered a fake Etherium app on Google Play. According to The Next Web, the fraudulent app had allegedly been put up for sale at price of €335 or $388. On August 20, Stefanko posted a tweet noting that purchasing the application is not the same as an Ethereum purchase. That implied that his recent discovery is a cryptocurrency scam meant to swindle users by mimicking the original Ethereum.
4. Alleged India Head of Now-Defunct Bitconnect Scam Arrested
According to a report by Financial Express published on August 18, 2018, Indian police have arrested Divyesh Darji, the man who was accused of promoting the Bitconnect investment scam. This is one of the common and related Bitcoin scams. Divyesh is believed to have been the India head of Bitconnect. Bitconnect, a high-yield investment scheme involving cryptocurrency, closed shop in January 2018 following suspicions that it appeared to be a fraudulent financial pyramid scheme. The Indian police finally nabbed Divyesh on August 18 in Delhi airport following a tip-off from local immigration services. Financial Express points out that a recently filed Freedom of Information Report (FIR) indicates that this is the third case being investigated by the Surat unit of CID. It is alleged that local Bitconnect promoters disappeared with 11.4 million rupees worth of Bitcoin from a single investor.
Implementing blockchain and cryptocurrency can bring immense gains to your business. However, you have to put proper security measures in place. Fraud is almost inevitable anywhere big money is involved, but you don’t have to be a victim. Cryptocurrency scammers tend to employ the same tactics, adapted to fit different situations. You should stay informed by reading the latest cryptocurrency scam news, so you can identify potential scams before you fall victim to them. [/read]