Beware of Bitcoin scams on Social Media (2024)

In the year 2017 we have seen a sudden hike in the price of a single Bitcoin which was even more than one ounce of Gold. The hike attracted many entrepreneurs, inventors etc to invest in Bitcoin. However, it also leads to a bitcoin scam through social media platforms. Scammers we have heard before were Banking fraud, holiday shoppers and Mobile game frauds but now Bitcoin scammers are all over the social media.

Why Bitcoin?

Bitcoins are verified through an encrypted transaction and the same is maintained in the ledger which can be accessed by anyone. It therefore becomes easier for the fraudster to do scams and frauds.

There are basically three things that makes Bitcoin a secured platform i.e. Its Decentralized, anonymous and irreversible nature.

Decentralized- When any fraud is committed in Bitcoin no losses can be claimed or can be recovered as it is not governed or controlled by any government authorities. Once a victim is duped no loss can be recovered or caied therefore.

Anonymous- Any person can open a wallet for earning or spending of the Bitcoins without providing personally identifying information. Bitcoins are common in “Dark Web: world where no user asks for any user’s identity.

Irreversible- Bitcoin transactions cannot be changed ever. Through this feature no person will be able to alter, modify or remove the acts from the system. Therefore it is irreversible in nature.

Four Categories of Bitcoin Scams

Following are the four categories of Bitcoin Scams-

• Fake Bitcoin Wallets Hiding malware downloads- One of the common frauds is to make users click the URLs posted on social media is observed as one kind of attack. The URL will end up in downloading a malware ladden app. We have also observed that fake bitcoin surveys have also been used to distribute malware. Therefore we always advise our clients not to download any insured URLs as it can lead to fraud.
• Bitcoin Phishing Impersonators- Impersonators are over the social media, they impersonate the Bitcoin brand as a tactic to gain trust and credibility of the users. These phishing websites allow the scammers to use Bitcoins directly from the Bitcoin owner’s wallet.
• Bitcoin Pyramid Schemes- To Recognize these fraudsters are next to impossible in this digital world. Once the scamsters stole the bitcoins it becomes harder for the victis to recognize or search for that fraudster. Fake links are being provided on these platforms for the scammers to steal the bitcoins. Once a larger number of victims have joined that link or scheme the original scammer will walk away with all the stolen bitcoins.
• Bitcoin Flipping Scams- These scams can be in the form of flipping or exchanging bitcoins in exchange of money after paying initial startup fees. These scammers also give offers to double the amount of your bitcoins overnight. Once any person trapped in that net has lost their bitcoins at that moment only. Scammers succeed because they have larger platforms on social media to attract hundreds and thousands of people.

The Reach of Bitcoin Scams on Social Media

It is evident from the above categories that shares have a large platform to attract and exploit users into their trap. In the year 2017 when the news was flashed that Bitcoin prices are worth more than its weight in gold, it was observed that these scams on social media have increased. At that time 3618 scam was being witnessed on the social networks.

Scamsters were adopting different methods to do scams which included sharing URLs, contacting the users via DMs or phone calls. It was further observed that the scamsteres were accessing through fake profiles most of the time.

Conclusion

As we can see for the above examples that Bitcoins scams have been increased all over the social media therefore there are few tips which our company recommends and they are as follows-

• It Is advisable not to trust anyone on social media who claims to help you in mine bitcoin.
• Avoid URLs that are associated with social media platforms which offer good bitcoin offers.
• Check the genuinity of the bitcoin broker on social media before engaging him for your bitcoin trading.
• Never engage in any financial transaction, Bitcoin or otherwise though direct message on social networks.
• If you have already been scammed, report the scam to the cyber cell complaint center, but do not accept your bitcoins back.

Winklix protects you from these frauds by making you aware about the risks involved in the businesses. We make you aware about the malicious campaigns and risks that are there all over the social media platforms and other digital channels.