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How do Bitcoin scams work?


Sardar
(@cryptoguy)
Eminent Member
Joined: 5 months ago
Posts: 20
Topic starter  

How do Bitcoin scams work?

Scammers use different tricks to steal your Bitcoins from your wallet. To prevent yourself from falling into a scammer’s trap, it is necessary to know how commonly used Bitcoin scams work.

Phishing

A scammer can use a phishing attack to extract your wallet’s private key, which gives the scammer access to your wallet and allows him to make transfers. Usually you will receive an email or message on social media that contains a link to the phishing site. A phishing site can be made to look exactly the same as a real website for example your wallet’s login page - but in reality, this page is fake. Any details you would enter on this page like your private wallet key, would be sent directly to the scammer who planted this attack on you. A scammer can get into your wallet then and transfer all your Bitcoin to his own wallet. 

 

Social Media Frauds

In the past, Twitter accounts of famous people like Elon Musk and Jeff Bezos had been hacked, and scammers made tweets in which they shared a Bitcoin wallet address asking people to send Bitcoins to receive double the amount back in their wallets. Anyone can fall into this trap since the tweet is coming from an official handle. Scammers can also create fake accounts mimicking famous people to ask people for donations in Bitcoins, or sell them fraud projects.

 

Scam ICOs

 In an initial coin offering scam, scammers would first create a new coin and back it with a fake project that is nothing but a deception to lure people towards their scam. They would set up a website, whitepaper, and show a fictional roadmap to make their project look legit. Then they would ask people to send them Bitcoins or other cryptocurrency to buy their coin through ICO. All coins obtained through such ICOs are fraudulently taken away by scammers leaving “investors” with nothing but guilt. 

 

Rugpulls

In a rugpull, scammers launch a fraud project and attract people by creating hype on social media to make people invest. Once they accumulate a good amount of investment, they take all their money out from the liquidity pool, and the token price drops to zero. 


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