Some common Bitcoin or Cryptocurrency Fraud
Bitcoin Phishing
Fraudsters will send out unsolicited email to victim that looks as if it’s from the victim’s bank or from victim’s cryptocurrency exchange or wallet provider containing a link which will take the victim to a website that looks almost identical to the exchange or wallet the victim usually use, but is actually a scam site.
Once the victim entered his account details on the unofficial website page, the fraudsters will have the required information and data to log in to the victim’s real account and steal his funds.
Bitcoin 'flipping'
The scam purport to increase victim’s investment in trading bitcoins or cryptocurrency by promising high and quick investment returns but little or low risks. But the scammers actually steal the victim’s bitcoins.
Old-school scams
Fraudsters make unsolicited phone call or email from someone claiming to be with government authority or enforcement agency. This fictional caller or email sender will try to convince victim that he will be facing legal action if he does not transfer them a certain amount of bitcoin or cryptocurrency to the designated account immediately.
Malware & viruses hidden in fake Bitcoin wallets
Crypto-related malware is designed to get access to the web wallet and drain victim’s bitcoins account, monitor the Windows clipboard for cryptocurrency addresses and replace victim’s legitimate address with an address belonging to a fraudster, or even infect victim’s computer with a cryptocurrency miner.
Ponzi or pyramid schemes
A Ponzi scheme is an investment scam that involves the payment of purported returns to existing investors from funds contributed by new investors.
Ponzi scheme organizers often solicit new investors in cryptocurrency or bitcoins trading by promising to invest the funds for high returns with little or no risk.
In many Ponzi schemes, rather than engaging in any legitimate cryptocurrency or bitcoin trading activities, the fraudulent actors focus on attracting new money to make promised payments to earlier investors as well as to divert some of these “invested” funds for personal use. The scheme will sooner or later collapse when the promoter runs off with the money or it has become too difficult to lure new investors.
The fraudsters may even involve an unregistered cryptocurrency or bitcoin offering or trading platform under the scheme.
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