The value achieved by Bitcoin and other cryptocurrencies such as Ethereum, Ripple or Litecoin, added to their increasing distribution, has made these digital currencies the main target of all types of scams. Some are specially designed to deceive cryptocurrency users and others are old ones, but adapted to new models.
The decentralized nature of cryptocurrencies also means that it is not so easy to report thefts and scams, much less have them resolved. Payment addresses are anonymous and almost untraceableso scammers, in many cases, prefer to get hold of cryptocurrencies rather than real money, in many cases obtaining exorbitant loot.
Main scams when using cryptocurrencies
The scam methods are many and varied, but these are the five most used:
Fake exchange houses
Bitcoins and other cryptocurrencies are acquired in exchange houses called exchanges. There are dozens of exchange houses, not only the best exchanges, but there are hundreds, so it is difficult to know them all. That is why one of the most elaborate scam methods includes the creation of a fake exchange with the aim of making unsuspecting users deposit their cryptocurrencies there.
This is what happened in South Korea in 2017, when a fake exchange called BitKRX made millions of users think that it was a legitimate Bitcoin exchange site. To avoid this situation, it is best to operate in well-known and regulated exchange houses.
Pyramid scams
Pyramid scams are not at all new, but that has not stopped them from proliferating in the world of cryptocurrencies and, unfortunately, quite successfully. Basically, your modus operandi It is to attract individuals who in turn do the same in a pyramid scheme in which money flows to the top.
There are well-known cases, such as that of Bitconnect (turned into a meme due to its staging) or that of MiningMax, which managed to raise nearly 200 million dollars and which had a bittersweet ending, since 14 people were arrested but the investors did not recover their money.
Fake cryptocurrencies
There are hundreds of different cryptocurrencies. Many of them have presented themselves as a viable alternative to Bitcoin, claiming that, due to its high price, it is too late to invest. However, scammers who use this method are limited to raising funds for a non-existent currency.
This has happened on multiple occasions. One of the best-known cases was that of OneCoin, in which a woman named Ruja Ignatova raised nearly 500 million euros for her new currency, which she presented as the rival to Bitcoin, and then disappeared without a trace. Therefore, it is important to read the projects behind each cryptocurrency and see that they present a minimum of transparency.
Email scams
The classic scam method has also been adapted to digital currencies. It is very common to receive emails that claim to have compromised user content and, in exchange for not spreading it, demand payment in Bitcoins or another cryptocurrency.
Most of them are quite crude messages, which are quickly detected by a syntax that is obviously the result of an online translator. But some may contain user data, such as a password and username, which would imply that the scammer has access to personal data. In these cases, there is no need to be alarmed, as the scammer may have obtained them from a data breach, in which millions of credentials are exposed.
There are hundreds of variations of this scam: someone asking for money in exchange for a larger sum in the future, attempts to impersonate banks and institutions, etc...
Malware
Without a doubt, the most effective way to obtain cryptocurrencies illicitly is through the use of malware. One of the most used is known as cryptojackingwhich “hijacks” computers to use their processing power to mine cryptocurrencies.
He ransomware is another favorite of scammers. It consists of encrypting all the data on a computer and forcing those affected to pay a ransom in cryptocurrencies to regain access to their data. The best thing to avoid this type of attack is not to access suspicious pages and have an updated antivirus.
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