Avoid These 5 Bitcoin Scams on Social Media

Social media is the place many of us socialize and spend our time. We post pictures of our kids and pets, trade recipes, and even discuss financial products. It is no wonder that Bitcoin has taken social media by storm. Unfortunately, there are also many Bitcoin scams on social media. 

If you have become a victim of Bitcoin scams on social media, Trader Defense Advisory experts are here to provide guidance and create a roadmap for fund recovery. Our experts are well-informed of different types of cryptocurrency scams online and will have your back at every phase of the fund recovery process.

Types of Bitcoin Scams

There are many types of Bitcoin scams on social media. The same benefits that draw consumers to cryptocurrency also attract dodgy people. The currency is anonymous (although experts can track it) and easy to access. There is no central government regulation, so it can be hard to catch wrongdoers. The following are some of the most common types of Bitcoin scams on social media.

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Fake Celebrity Endorsements

Celebrity endorsements are a great marketing tool. However, fake celebrity statements can be a tool for scammers to trick people into Bitcoin scams on instagram and Twitter. The latter has had several high-profile Bitcoin frauds, and Twitter management has sworn to crack down on the problem. It is therefore important to look at any Bitcoin push on Twitter with caution. 

In some cases, scammers will create fake celebrity accounts, but in July 2020, some actual hackers took over accounts belonging to Elon Musk, Bill Gates, Warren Buffett, boxer Floyd Mayweather Junior and company accounts like Uber and Apple. 

These hackers, under the guise of celebrities and companies, asked followers to send money to a blockchain address and claimed the amounts would be doubled and sent to charities. These funds merely went into the pocket of scammers. There were 320 transactions in the first minutes of the announcements. 

Fake bitcoin scams on Facebook and YouTube also happen from time to time. Apple co-founder Steve Wozniak filed a lawsuit because his videos were being deceptively used by scam bitcoin sites and edited to look like endorsements. When you see a celebrity endorse something on social media, look carefully and check the news.

Fake Bitcoin Investments

Fake Bitcoin investments abound, and Bitcoin scams on Reddit and other social media platforms convince people to take a chance and invest. Many of these investment schemes work similarly to regular Ponzi and pyramid schemes. Others claim to provide access to a Bitcoin trading platform that will yield an impossibly high return on investments. 

One of the most common Bitcoin scams on Facebook, Twitter, or Instagram are pyramid schemes. They work similarly to multi-level marketing campaigns intended to sell products while also encouraging others to become salespeople. In the end, people discover only a few products are being sold to real customers and the so-called salespeople are being duped into buying more products than they sell. 

Bitcoin pyramid schemes work on a similar principle. Instead of salespeople, however, the people who are signed up are called affiliates. These are not to be confused with legitimate affiliate marketers, but in a pyramid scheme, there is no actual product sold. Affiliates are told to share referral links to others who in turn share the links and sign up more people who have to pay for services. 

Bitcoin scams on Tinder and other social media platforms involve people making connections with others, purportedly for friendship, conversation or romance, only to try to sell them on a Bitcoin investment scheme that turns out to be fake. Be suspicious of people who immediately talk about investments when you begin talking to them for the first time.

Fake Bitcoin Wallet

When you purchase Bitcoin, you will also need a Bitcoin wallet. However, it is important to download a Bitcoin wallet, app or another tool that is from a reliable source, because many fake Bitcoin scammers try to get people to click products that contain malware. Bitcoin scams on Facebook may feature links on a status that promises to provide a great Bitcoin wallet or app. 

These links, however, initiate the download of items that contain malware and can infect a computer or device. The key to staying safe from this type of scam is not to simply click on any link from a page claiming to be a reliable Bitcoin company. There are many Bitcoin scams on social media, so it is not the place to shop for a wallet or an app. 

If you do find a lead to a good Bitcoin wallet on social media, be sure to research the company well. As the following question before purchasing Bitcoin tools: 

  • Who is the company behind the wallet?
  • Where is the company registered?
  • Are there reliable reviews? 
  • Don’t rely on app stores, only download wallets from reliable providers

It is very important to research before making these purchases, because one click may lead to exposure to malware and other problems. Avoid clicking any such links on social media.

Bitcoin Flipping

Bitcoin flipping is one of the most common Bitcoin scams on Facebook and other social media platforms. It would be like a crook asking if you can make change, grabbing your money, and driving off without giving you their bills. 

This scam begins when people reach out to strangers and social media and befriend them. They will then convince them to exchange Bitcoins for money and in return, they will increase this investment many times over. They may hold up their end of this agreement, but only for themselves because they will then run off with the Bitcoin. 

These Bitcoin scams on Instagram and other platforms can be marketed to individuals or to a large number of people at once. As with other types of investment scams, avoid hyped-up promises of impossible returns. Stable investments should be done through licensed brokers and not a scheme advertised on social media. Check the credentials of the person or organization brokering the investment. 

Do not part with any Bitcoin until you have examined the opportunity thoroughly. No one should be asking for your cryptocurrency with a promise of a return on investment without offering an agreement. If you have access to a contract, look at it carefully. The fine print is the way many scammers get away with their frauds.

Bitcoin Phishing

Phishing is a deceptive practice that involves stealing personal information from someone. One of the most well-known forms of phishing occurs when someone assumes a false identity on social media and manages to get personal data. The same principle is used for Bitcoin scams on Tinder or other social media platforms. 

Sometimes the phishing happens in connection with an expression of romantic interest. The person will get to know someone for one reason and they may turn the topic to Bitcoin and ask to make an exchange. They may steal the Bitcoin or may also use the code or the personal information of the other person. 

Some Bitcoin phishing scams online involve scammers masquerading as a Bitcoin company with a great investment scheme. They will encourage people to join up and enter their personal information, including their Bitcoin code, and they will steal this data and use it to steal Bitcoin and perhaps credit cards or the person’s entire identity. 

As with any other kind of data, avoid giving your Bitcoin data over social media or other platforms. Once people have your data, it can be hard to undo the damage, but with the right anti-fraud agency, you can recover from this scam.

If You Have Lost Money in Bitcoin Scams on Social Media, Talk to Us Today!

Bitcoin scams on social media can be complex, but Trader Defense Advisory has the expertise and training to rise to the challenge. Scammers may think Bitcoin is anonymous, but our team has the technology and data-gathering skills to unmask crypto-criminals. Consult with us today and we can get the process started to catching the scammers and working to retrieve your funds.