AS Bitcoin and other cryptocurrencies rise in popularity, so too have crypto-related scam operations and phishing attempts.
The growth of Bitcoin has led to a rise in the number of fraud operations related to it.
The FTC reported that since October of 2020, nearly 7,000 people have reported losses of more than $80million in the US due to cryptocurrency scams.
This number is approximately 12 times higher than the loss reported a year ago.
These are the signs that a Bitcoin scam could be. Here’s how to protect your cryptocurrency wallet.
POSING AS AN AGENCY OR BUSINESS
As noted by Inverse, Many phishing scams will attempt to impersonate a government agency or business to get your attention.
According to some reports, scammers contacted victims pretending to represent the Social Security Administration asking them to deposit money in Bitcoin ATMs.
Scammers pretending to be Coinbase also took money from victims.
Giveaway scams often pose as celebrities or well-known figures and ask victims to send Bitcoin, promising to send back a much larger amount.
Keep checking our cryptocurrency live blog to get the most recent news and updates.
Many giveaway scams are promoted via social media. They attempt to connect with people through Instagram, Twitter, and Facebook.
Scammers pretending to represent Elon Musk, for example, have been reported by victims as having sent over $2 million.
Some scam operations have even started using dating apps to reel in potential targets.
Some reports suggest that scammers might pose as long-distance love interests to share a hot crypto opportunity.
Around 20 percent of the money lost due to dating scams during the last year involved cryptocurrency.
Another widespread scamming technique is websites that appear to be a new cryptocurrency mining operation or investment opportunity.
These sites encourage investors to wire in money, sometimes offering investment “tiers” and promising greater returns.
However, when users try to withdraw their money, they are not able to do so and are instructed to add more cryptocurrency.
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