Types of Bitcoin fraud

18.10.2021 09:57
Types of Bitcoin fraud

    Bitcoin is a crypto-based digital currency with a whole set of benefits. The interest in BTC is huge, and it threatens the interests of cryptocurrency owners. There are many ways in which scammers steal Bitcoins from their owners. In this article, we will list the most common methods, as well as tell you how to protect yourself from BTC scams.




    This is one of the most common types of fraud with Bitcoin and other cryptocurrencies. In addition, there are several of the most common schemes. For example, a certain platform or exchanger is created, widely advertised and attracts users. But instead of trading or exchanging, clients' funds are stolen as soon as they transfer their tokens to the specified wallets.

    Such platforms and exchangers offer very good terms and even create free token giveaways. Everything is aimed solely at getting a person to go to the website, register, and fund their account. If you want to protect yourself from scams, it is recommended to carefully study the reviews of new websites, as well as to check the information about them by any available means.

    This type of fraud has a variation. Attackers copy the site of a well-known platform or exchanger and buy a virtually identical domain name (replacing one letter in it). Thus, it is difficult for the average user to distinguish the fake from the original. As a result, users go to the replica site and make transactions there.  As a consequence of this, they lose their money.

    To avoid becoming a victim of such a scheme, it is recommended to carefully double-check the domain name under which the site is located. Also, the real platform can be added to the browser bookmarks, so that then go to the site through them, rather than through search engines.




    This is another type of fraud with Bitcoin and other cryptocurrencies. The idea is that some project offers users to get, for example, 1 Bitcoin after they send 0.5 Bitcoins to a certain address. The scheme is far from new. It has been run by scammers for quite a long time, even before cryptocurrencies appeared.

    A vivid example is the e-mails received by many citizens of CIS countries. Users were offered to receive help in receiving an inheritance or a lottery win. But for this, the recipient of the letter was to transfer a large sum of money to a certain account. The scammer promised to share the inheritance or the winnings.

    Such a scheme quickly enough took root in the world of cryptocurrencies and even today is actively used to obtain Bitcoin illegally.

    In addition, giveaways can often be found in social networks. They should also be treated with caution. There are real giveaways when some project advertises and distributes its tokens for free. But if you are asked to deposit a certain amount of BTC or another popular cryptocurrency, you should be wary.


    Fake Projects


    Despite the fact that the boom of ICO/TGE and other initial offerings has already passed, this type of fraud is still flourishing. The main purpose of fake project is to collect tokens from users, offering supposedly some technology in return. The result, of course, is that there is no technology. Users receive project tokens in exchange for their Bitcoins, which quickly drops in value.

    This can also include various pyramids and Ponzi schemes. A classic example is mining investments, where clients are promised rewards for investing in processing power. The first users profit from the newcomers and so on until the scheme organizers decide that they have earned enough. After that, payments stop even for those who entered the project a long time ago.

    How to protect your funds from this type of scammer? First, you need to carefully analyze the projects in which you are going to invest. You can use various criteria for evaluation, such as:

    •     the team of the project;
    •     the main idea;
    •     adherence to the roadmap;
    •     competition in the field;
    •     information in WP;
    •     feedback from users (if any).




    This is one of the most sophisticated ways to trick a user. You can perform some actions on the Internet and, without even knowing it, lose your money. The problem is that most Bitcoin owners really don't realize that they can get a virus. Moreover, these days, scammers are using the most sophisticated means.

    Quite a widespread virus is copy and paste programs. Their job is to intercept data from the clipboard and redirect transactions to other addresses. How does this happen?

    Imagine that you are going to send a certain number of bitcoins to a friend or to a trading platform. If you already have such a virus on your device, the moment you copy and paste the address, it will be automatically changed to the address of attackers. Accordingly, the funds will go to the wrong address.

    The recommendations here are pretty simple. It is necessary to constantly monitor the security of your PC with the help of antivirus programs. If you doubt one of them, you can try several. Transactions should only be carried out on a virus-free device.


    What is important to keep in mind when dealing with cryptocurrency


    1. When it comes to scammers, most often they try to constantly rush their victim. This is due to the fact that it is important for the attacker not to let the user think over the situation and make the right decision. In addition, such schemes are often short-term. Therefore, it is important that the person has time to send the cryptocurrency before a certain point.
    2. Another point is insider information. Very often scammers in social networks and messengers use the same trick. They report that they have some exclusive information about rate increases or arbitrage opportunities. In doing so, they also push their victim, explaining that a unique opportunity might be missed. Naturally, the scammers do not have any insider information. In this way, they simply lure users and then commit their illegal actions.
    3. When dealing with cryptocurrency, it is important to remember that all transactions are irrevocable. If, for example, we are talking about bank cards, in case of fraud or poor-quality services, the user can start the chargeback procedure and try to get their money back, in cryptocurrency this is physically impossible. Any completed transaction is recorded in the blockchain. It cannot be changed or reversed. To do so, you would have to roll back the network, which, of course, would displease other users, as their transactions during this period would also be cancelled. Consequently, trust in the blockchain would fall.
    4. It is useless to appeal to law enforcement agencies in this situation. They are unlikely to help, because in blockchain all transactions are anonymous and scammers always use anonymous profiles in social networks and messengers to communicate with victims. In addition, cybercriminals can use so-called mixers, which allow them to distribute their future transactions to numerous fake addresses. 


    According to the manufacturer of antivirus software Eset, Russia is the leader in the number of fraudulent transactions with cryptocurrency in 2021. In the first place is the creation of sites in order to take over users' tokens. In second place there is the creation of similar domains, which was also discussed in this article.


    It's important to choose the right platform for exchanging, trading and investing


    Due to the huge number of fraudulent sites, it's very important to choose only reliable and trusted platforms, which is Broex. Here you can work with popular cryptocurrencies like Bitcoin, Etherium, Dogecoin crypto, Monero, Ripple and others, as well as with less popular and less liquid ones.

    The fact is that Broex has a strategic partnership agreement with Binance, which allows the platform to add various tokens available on the well-known trading platform. Therefore, instead of the top ten cryptocurrencies, Broex clients can use more than 600 pairs.

    In addition, more than 300 exchange directions are implemented on the website. In addition to tokens, Broex clients can work with bank cards and some electronic payment systems. Thanks to this, it is possible to quickly and safely make the transition between fiat money and cryptocurrencies.

    Reliability and security are one of the important advantages of Broex. For example, clients' fiat funds are kept in separate accounts without access to them by site employees. Broex is not only a platform for buying tokens or investing in portfolios. Cryptocurrency can be stored here securely. The tokens are kept in cold wallets, which increases their security and reduces the chances of hackers succeeding. Unlike many other similar platforms, Broex can be used as a cryptocurrency wallet without fearing for your investments.




    Main advantages of buying and selling cryptocurrencies on Broex platform:

    • Legal cryptocurrency exchanger. The company is registered in the European Union (Estonia).
    • High liquidity. It allows you to quickly buy and sell most of the assets.
    •  A wide choice of methods of deposit and withdrawal. Both cryptocurrencies and fiat money are accepted for payment using bank cards and electronic payment systems.
    •  Mobile application with no functional limitations.
    •  Quick and informative support service.
    •  Secure storage of tokens and fiat money.
    •  Possibility to create your own portfolio using ready strategies with diversification.
    •  Large number of tokens to trade thanks to strategic partnership with Binance.
    •  Minimum transaction costs.


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