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8 Common Bitcoin Scams And How To Prevent Them

There are several ways to defraud bitcoin and blockchain space. Some of the most common ways to do this include: extortion, counterfeit exchanges, fake gifts, social media phishing, copier malware, ransomware, phishing emails, panzi tricks, and pyramid schemes. 

Bitcoin Scams, In this article, Kevin Nick, we are going to briefly review each of these methods and explore ways to prevent them so that we can use our assets more securely in the world of digital currencies.


Every year new technologies are introduced to the world. But bitcoin scams have also found new ways to exploit these developments. Unfortunately, Bitcoin provides a good opportunity for digital currency fraudsters. Because it is largely without borders and restrictions.

The decentralized nature of bitcoin allows you to have complete control over your investments. But this makes it more difficult to draw up a regulatory framework and then enforce the law properly. You may be caught cheating and lose your bitcoin. In these cases, there is no way to recover your lost bitcoins.
Therefore, it is important to know how fraudsters work and how to prevent it. There are many ways to cheat in the world of digital currencies, but some of them are more common. For this reason, in this article, we have reviewed these more commonly used methods and examined how to prevent them.

Introduction to Bitcoin Scams
Bitcoin provides a good opportunity for digital currency fraudsters

1. Extortion

Extortion is a well-known method. In this way, users are threatened with publishing sensitive information if they do not pay a ransom. This blackmail is mostly done in the form of digital currencies, especially bitcoins.
This blackmail is done by fraudsters who have somehow found your sensitive information. They use this information to force you to send bitcoins or other common currencies.

The best way to avoid being caught by such scammers is to always be careful about how you enter and save login information to your accounts. Using two-step authentication as much as possible can also be a good option. If the information is in the possession of fraudsters and you know it, then rest assured.

2. Fake exchanges

These exchanges are in fact copies of legal and reputable exchanges. This type of scam is usually done by mobile applications. However, it can also occur in computer software or fake websites. You always have to be careful. Because some of these fake exchanges are very similar to the original version.

 These exchanges may seem credible at first glance, but in the end, their purpose is to steal your property. Counterfeit exchanges usually attract traders and investors by offering free digital currency, competitive prices, low fees and even gifts.

To avoid getting involved with exchanges Fake You should save your exchange site address in the browser bookmark and always check before entering it. You can also get help from Binance Verify to check the validity of site URLs, Telegram groups, Twitter accounts, and more. 

If you are using a mobile application, be sure to check the information about its developer. Things like downloads, reviews and comments can also help.

Counterfeit and fraudulent exchanges in Bitcoin
Fake exchanges usually attract traders and investors through different offers

3. Fake gifts

This method is used to defraud your digital currencies by offering free gifts for small deposits. Scammers usually ask you to send some of your money to a specific bitcoin address first. 

Then receive more bitcoins in return (for example, sending 0.1 bitcoins in exchange for receiving 0.5 bitcoins). But by doing this transaction on your own, you will not see any other traces of them.

There are different types of this method. Some scammers ask you to send them other digital currencies such as Atrium, BNR, XRP, and به instead of Bitcoin, and in some cases, they may even request your private key or other sensitive information. The use of this method is more common on Twitter and other social networks.

Never respond to such requests. Remember that you should not share your valuable information with others under any pretext. Companies that intend to legally give a gift to their parties will never ask for private or important information in return.


4. Social network phishing

Social network phishing is another common method of bitcoin fraud. As with the previous method, the use of this scam is more common on social media. Scammers create accounts on social media. The problem is that these accounts are very similar to the accounts of celebrities in the world of cryptocurrencies. 

Then in the form of tweets or direct, they offer to send gifts in exchange for private information from you.

The best way to prevent social media phishing is to always carefully check the accounts of the people you follow. Usually in every social network, there are indicators to identify valid user accounts (such as the blue tick on Twitter and Facebook).

Social network phishing and bitcoin scams
Social network phishing is another common method of bitcoin fraud

5. Copier Malware

Duplicate malware is a very mysterious way to defraud bitcoins and steal your capital. This type of malware steals data from your clipboard. That way, if you are not careful, you can simply send your money directly to the fraudsters.

Suppose you want to send some bitcoins to your friend. As usual, he will send you his bitcoin address. You copy this address and put it in your wallet.

 However, if your device is infected with this malware, the fraudsters’ address will be automatically replaced by your friend’s bitcoin address (in the set when pasting it at the destination). So, as easily as possible, by yourself, your bitcoins will charge the scammers’ account instead of reaching your friend.

To avoid this type of scam, you need to be very obsessed with the security of your computer. Do not open suspicious emails that may contain infected attachments or dangerous links. Always be aware of the websites and software you use. It is also best to install an up-to-date antivirus on your system and scan it regularly. Updating the operating system can also be a very key point in this regard.


6. Phishing emails

There are several types of phishing. One of the most common ways is to use phishing emails to encourage users to download an infected file or click on a link that opens a malware-infected site. These emails are very dangerous because they can restrict the product or service you are using.

These emails usually contain messages asking you to act quickly to secure your account or funds. They may ask you to update your information, change your password, or upload documents. In most cases, the purpose of this is to collect your login information. This way they can easily hack your account.

The first step in preventing bitcoin phishing scams is to check the source of the email. If in doubt, you can contact the company directly and ask them for the correctness of the email. In the next step, you can hover your mouse over the link. Here, without clicking on the link, you can carefully check how it is written.

 Do you see any suspicious characters, misspellings, or any other special case?
Even if you do not see anything suspicious, do not click on the link. If you need to access your account, do so directly by typing the site URL or using the browser bookmark.


7. Panzi and pyramid designs

These methods can be considered as one of the oldest types of financial scams in history. The Ponzi scheme is an investment strategy that pays older investors through capital inflows by new investors. When fraudsters are no longer able to attract new investors, the flow of payments stops. OneCoine is one of the most prominent examples of Ponzi design in the world of cryptography.

On the other hand, the pyramid scheme can be considered a business model that pays members depending on how many new members they have succeeded in attracting. Here, too, the flow of payments stops with the recruitment of new troops.

The best way to avoid these scams is to do some research before buying any digital currency. If the value of a digital currency depends heavily on new investors or new users, it is likely to be used for ponzi and pyramid schemes.

Ponzi scheme and bitcoin scams
In the Pooner scheme, payments to older investors are made through the capital inflows of new investors

8. Ransomware

Ransomware is a type of malware that locks a victim’s mobile or computer. In a way that makes it impossible to access the valuable data stored in it. The only way to open the system is to pay the desired ransom in bitcoin. These attacks can be very destructive, especially if they target hospitals, airports and government agencies.

The ransomware usually blocks access to important files and data. Following this, it is threatened that all files will be deleted if the ransom is not paid by the deadline. Unfortunately, however, there is no guarantee that the attackers will keep their word. Here are some things you can do to protect yourself from ransomware attacks:

  • Install an antivirus and update the operating system and software
  • Avoid clicking on suspicious ads and links
  • Be aware of attachments to emails. You should especially be careful with files with these extensions: exe, vbs and scr.
  • Back up your files so you can recover them if needed.
  • At NoRansome you can find useful tips on preventing ransomware as well as free tools for recovering information.

Final point

There are a variety of ways to defraud Bitcoin. However, knowing how to do these tricks can be an important step in preventing them from getting caught. If you can avoid the usual bitcoin scams, you can keep your assets safe and secure.