Bitcoin is relatively new trading or investment territory. Some people don’t want to venture into this territory because of some investors’ uncertainty. Currently, many people characterize the crypto industry with risk, volatility, loss, and reward. After over a decade, the Bitcoin market is fast-changing, and its prominence is likely to impact the commerce future.
Nevertheless, Bitcoin has captured the attention of speculators, investors, and traders, primarily due to its skyrocketing prices. Many people buy Bitcoins on online platforms like quantum-ai-trading.com. However, the Federal Trade Commission, Consumer Sentinel, reports increasing crypto-related scams, with almost 7,000 people losing over $80 million in cryptocurrency investments. Such figures can undoubtedly make you fear investing in Bitcoin. But how can somebody scam you on Bitcoin? Here are ways people are losing money trying to trade or invest in Bitcoin.
Romance Scams
Bitcoin scams are prominent in dating applications. About 20% of the funds people lost in romance scams between October 2020 and March 2021 were in cryptocurrency. For instance, people use dating apps to engage in digital or long-distance relationships. In that case, a party can convince or pressure the other to send money or buy gifts using Bitcoin. Unfortunately, this is only a way that some people are scamming other Bitcoin investors and users.
Giveaway and Imposter Scams
Scammers also pose as famous business people, celebrities, and crypto influencers intending to steal from unsuspecting Bitcoin users. To draw attention from their targets, such scammers promise to multiply or match the tokens they receive.
These criminals send well-crafted messages using what seems like valid or reliable social media accounts. That way, they make their target think the offers are reasonable. In some cases, they send messages that make their target consider the opportunities urgent. Thus, some people see the offers as a once-in-a-lifetime chance, prompting them to send the funds quickly, expecting instant returns.
For instance, Bitcoin users have reportedly sent Elon Musk impersonators cryptocurrency worth $2 million. Also, 14% of the losses that crypto users have incurred through cryptocurrency are due to imposters.
Phishing Scams
In most cases, phishing scams aim to get online wallets’ information. For instance, scammers may want to get private keys for crypto wallets to access the funds in them. Such scammers can send an email with a link to a specific website that requires the recipient to enter their wallet access information. That way, the scammers can receive the information they need to hack or infiltrate the digital wallet and steal its funds.
Extortion and Blackmail Scams
Scammers can also send a Bitcoin user a blackmail email to steal their funds. Such an email can claim that the hackers have adult sites record or illicit pages that the crypto user has visited. Criminals can proceed by threatening the recipient that they will expose them if they don’t send them a certain amount of funds in Bitcoin or disclose the private keys of their wallets. Such acts amount to criminal extortion, and Bitcoin users should report them to law enforcement agencies.
Bitcoin Business or Investment Opportunities
Some cryptocurrency users have lost a lot of money to misleading sites that offer guaranteed returns or startup opportunities. These platforms require Bitcoin users to invest significantly large sums, even more, significant than the returns they promise. Unfortunately, the funds can flow inward freely, but getting the promised rewards becomes a nightmare.
Final Thoughts
Bitcoin investments look like lucrative opportunities for making money to some people. However, somebody can scam you when investing in this virtual asset, especially if new to cryptocurrencies. Therefore, take precautions to avoid losing money when investing in Bitcoin.
