The cryptocurrency industry is developing rapidly, and therefore the interest in it from scammers and fraudsters is growing just as quickly. We want to share our experience with you and warn our clients against possible financial losses.
Before we start looking at the main fraud scenario, let's understand the difference between "scam" and "fraud."
Scam - is the situation where the victim has been tricked into authorizing a payment.
Fraud - is where payment is made without the authority of the customer.
Below is the list of the well-known cryptocurrency fraud schemes
Forex brokers/account managers
Fake 911 calls
Payment recovery agency
How can I protect myself from scams and fraudulent transactions?
Tips to protect yourself
How scammers/fraudsters contact you
Forex brokers and account managers:
Are you in touch with a forex broker or an account manager? Do they offer you to invest with bitcoins? Before sending them any coins, we would recommend finding any information about their company on the internet, as most similar companies are scams. Please remember that you cannot trust someone contacting you through Facebook or any other social media sites. Some brokers will also ask you to pay “fees” before you can get the “profit.”
We strongly recommend you to make such search requests as Company XXX review”, “Company XXX scam.” Before you make any investment, please call back your broker to make sure they will answer your call. If you make contact via Skype, always ask to turn on the camera and ask for the office number.
Fake 911 calls:
Nowadays, there is a new way of scamming. Scammers make fake calls to random people, introduce themselves as representatives of emergency asking people to send money in bitcoins to them for some reason.
PLEASE stay away from them! An emergency will NEVER ask you to send them money, especially in crypto!
Cloud mining can be productive and profitable, but if a mining service asks you to send bitcoins to start getting profit, most likely, the service is a scam.
Always ask if they accept bank transfer payment. Fraudsters do not like to share their personal information, including bank details. If they provide you with bank details, make sure the company is legal and real.
Did a technical support representative contact you via phone to help you to extend your subscription? Did the person ask you to provide your document in a web camera to identify you? You can be sure that it is a scam. Companies will never ask you to provide your details that way.
Another popular scam among fraudsters is making fake calls or sending fake emails to random people on behalf of Government authorities.
Please remember that government authorities will NEVER ask you to send them in crypto.
If you have received a similar email or had a similar phone talk, we recommend contacting your local police for more help.
Do you enjoy playing online video games? Have you ever had a dream to be the strongest player on your server?
Nowadays, there are many people on gaming forums, who offer gamers all this stuff and even more, of course, for the money, but among the sellers of the stuff, there are a lot of scammers! And most of them accept bitcoins only.
So before buying anything, we would recommend you to find any feedbacks about your seller.
Before ordering something from a service where Bitcoin is accepted, google some feedback about the purchasing vendor. Many marketplaces cannot only send you goods that differ from your order but even have no intention to send anything at all.
Do not share Your personal information, Government ID, or card's credentials over the Internet. Especially, do not show any of this information during a Video call - the person on the other end can take a screenshot and use your personal information elsewhere.
Beware when someone offers You "Wanna do fast $200?" over the Internet and asks for any of your Personal Information. A full set of PII (Personal Identifiable Information) can be bought for as little as $50. Maybe you will earn $200 today, but you will lose much more waking up tomorrow.
Do not make financial payments to someone online you have never met. Be aware that the recovery of money sent by cryptocurrency is rare.
Be wary of relationships that develop very quickly, make sure that your friend is not talking about financial aid, or is asking for money in order to come to your country and see you.
Payment recovery agency:
We strongly advise against contacting agencies that offer assistance in money recovery. Cryptocurrency transactions are irreversible. Be aware that the recovery of money sent by cryptocurrency is rare.
Please try to contact the recipient of the funds in order to get a refund. If they fail to refund you and you have fallen victim to a crime we recommend to report a case of cybercrime, by visiting the following site:
For customers from Europe: https://www.europol.europa.eu/report-a-crime/report-cybercrime-online
For customers from the USA: https://www.ic3.gov/complaint/default.aspx
Are you trying to make a rental deposit on Airbnb? Beware of Airbnb scammers. There is a group of people who pose to be Airbnb representatives and are asking to make payments in Bitcoin. They created a phishing website that looks very similar to Airbnb’s website.
However, Airbnb does not accept payments in Bitcoin for property rental. They have their own internal payment processing system.
Please double-check the URL or link before you pay. Pay attention to the e-mail of the agent. Try to find this e-mail address or contact number on the Airbnb official site.
- Never provide a stranger remote access to your computer.
- To verify the legitimacy of contact, find them through an independent source such as a phone book, past bill, or online search.
- Don't click on hyperlinks in text/social media messages or emails, even if they appear to come from a trusted source.
- Never respond to unsolicited messages and calls that ask for personal or financial details — just press delete or hang up.
- Keep the security on your network and devices up-to-date, and have a good firewall to protect your data.
- Always check an e-mail or website URL to make sure that there are no extra words.
- Check the review for the company you are working within the internet. Make sure that people do not complain about scam and money loss.
- Check the company's license number on the internet.
- If you are not familiar with a cryptocurrency, we would suggest you learn more and understand how it works.
- Always consider the possibility an online approach could be a scam.
- Calling you or coming to your door
- Contacting you via social media, preferably Skype and Telegram
- Setting up websites that look real.
- Impersonation government authorities via messages, calls, or e-mails
- Collecting information about you from social pages, so when they make contact, they are more convincing.
- Dating sites