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The Latest Cryptocurrency Scam News

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 scams 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 does the scam 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 Blackmail Scam “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:
  • Threats
  • Intimidation
  • High-pressure tactics
Victims of these bitcoin scams are advised to report it to the local police and the FBI. Read More
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