How to identify and avoid Bitcoin scam
Posted in: Cryptocurrency

How to Recognize and Avoid a Bitcoin Scam in 2022

People frequently resort to Bitcoin and other cryptocurrencies when seeking financial security, which can lead to emotional investing. But unfortunately, it often results in consumers falling for Bitcoin scams.

Bitcoin: Is it a Scam?

Is Bitcoin a scam? It is certainly not a scam. Bitcoin is a relatively new technology, operating as a completely transparent, decentralized, and open-source currency. It implies that no governing body or central institution may own, control, or influence Bitcoin.

Anyone with access to the internet around the globe can use bitcoin.

It would be nearly impossible to hack Bitcoin because of the resilience of the network and the expense to any potential attacker. Furthermore, although theoretically possible, there are currently no powerful supercomputers to accomplish this, and any successful attempt would take more than a lifetime to complete.

Is the Revolution in Bitcoin a Scam?

Bitcoin is a ground-breaking digital currency with characteristics akin to gold. However, these scams were not brought on by new technology. Instead, these frauds are a result of a few clever individuals discovering that they could trick, manipulate, and cheat people for a small amount of extra money, using this new technology.

How to Recognize a Bitcoin Scam

Numerous con games and techniques defraud people of their money. The most typical Bitcoin scam formats are mentioned here so you can understand how they operate and prevent falling for one in the future.

1. Blackmail

Attackers use a variety of tactics to extort victims out of their hard-earned money. One possibility involves them telling the victim that they are aware of their “dirty secrets” and threatening to reveal them if they don’t pay in Bitcoin.

2. A poor or non-existent whitepaper:

Since a whitepaper is one of the most critical components of an ICO, every cryptocurrency should have one. The Cryptocurrency should cover its design and operation in its whitepaper. Be cautious if the whitepaper doesn’t make any sense or, even worse if it doesn’t exist.

3. Excessive marketing:

Every company advertises itself. But investing heavily in marketing, like internet advertising, paid influencers, offline promotion, and so on, is one way that cryptocurrency scammers draw people in. It is intended to reach as many people as possible within a shortest amount of time, raising quick money. You should consider stopping and broadening your study if you think a crypto is engaging in pushy marketing tactics or makes grandiose claims without evidence.

10 Bitcoin scams to avoid in 2022

How to identify and avoid Bitcoin scam

1. Investment or business opportunity scams

Scams involving investment or business opportunities frequently start with an unsolicited invitation to invest in cryptocurrencies; this transports you to an impostor website where you can read more about the appealing possibilities. The website encourages you to start investing immediately, so you may start earning money immediately. The website may even contain fabricated testimonials or endorsements from famous people.

But when you complete your transaction, the offer is never fulfilled, and your money is never returned. These bitcoin frauds could be compared to Ponzi or multi-level marketing schemes.

2. Imposter or impersonation cryptocurrency scams

When a cybercriminal impersonates a source to persuade victims to finish a transaction, this is known as an impersonation scam. It could be done by pretending to be a bank, a service provider, a government agency, a credit card company, a government official, or even a fake celebrity. They frequently email you and ask you to complete a cryptocurrency payment.

 Because cryptocurrencies are not yet commonly recognized by businesses and are not subject to government regulation, you should be wary of email requests in cryptocurrency payments. Before making a transaction, confirm with the source via a separate communication channel and examine the website’s security as a precautionary measure.

3. Extortion and blackmail cryptocurrency scams

When you receive an email claiming that someone has compromising material about you, such as images, videos, or personal data, and they want money in exchange for its release, it is one of the oldest scamming techniques in the book. It is also known as blackmail or extortion.

When the con artist demands payment in bitcoin, frequently because no one can undo these transactions, it is a cryptocurrency scam. Ignore these texts coming from unknown sources, report the sender to the authorities, and opt for bitcoin recovery as soon as possible.

4. Cryptocurrency frauds on social media

These are scams seeking cryptocurrencies that take place on social media. It sometimes takes the form of a fake social media post or commercials asking for a cryptocurrency payment. Perhaps there are even other people who will comment on the content or leave feedback. These might be robots. Even a buddy whose account has been compromised could have posted or sent the message. Alternately, social media influencers may promote a brand-new cryptocurrency that may be phony, enticing users to sign up or transfer their money that they promise to increase. Finally, some of these influencers occasionally keep the money for themselves. These are regarded as cryptocurrency influencer frauds.

5. Cryptocurrency giveaway scams

Social media and fake cryptocurrencies are used in giveaway scams to persuade victims to donate money by promising to multiply the amount.

6. Fake apps

Distinct cryptocurrencies have different apps that are usable digital payment methods, and fraudsters are adept at copying them. For example, over 300,000 people downloaded a bogus app in 2021 that stole users’ banking information. After downloading these fake applications, customers start transmitting money that goes directly to the cryptocurrency scammer.

7. Cryptocurrency loader or load-up scams

Unbelievable as it may seem, some bitcoin scammers may blatantly ask for your login information. A loader or load-up cryptocurrency fraud operates as follows: Victims may receive a request from scammers asking them to lend their account because they require more considerable limits. The con artist promises to give them a percentage of their investment earnings in exchange.

8. Romance cryptocurrency scam

Romance scams use social engineering techniques to manipulate their victims’ emotions. How does it function? Cybercriminals pose as online romantic interests to build their victims’ trust to the point where they urge them to give money. Then, the online thief steals the money and flees as soon as the victim does.

9. Cryptocurrency phishing scams

Phishing attacks, another traditional cyberattack, frequently featuring an email that requests for payment. These messages often come from online criminals impersonating reliable sources, making phishing frauds similar to impersonation scams.

10. Workplace cryptocurrency fraud

Employment bitcoin scams frequently start with an unsolicited job offer that entices victims to a phony website to learn more about the opportunity, much like investment or business opportunity scams.


Bitcoin is a highly valued asset, and while it can be used as a medium of trade, it also functions exceptionally well as a wealth store, preserving and rising in value over time. Exercise caution, whenever and anywhere you spend your Bitcoin. If you decide to use it, it’s now simpler than ever to spend your bitcoin, thanks to the abundance of trustworthy Bitcoin retailers and debit card providers. However, it is best to verify your provider before you jump on to trading.

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