Related Articles

Top Five Common Cryptocurrency Scams

BitForex Editor
Nov 25, 2020

Scammers now rampantly make use of Cryptocurrency scams to hoax individuals to get money from them, and they do this through so many means. Cryptocurrency scams may be seen as bogus investments, emails, or even business opportunities. Scammers may show up in so many different means, but they all have one thing in common, and that is for you to make a transaction using Bitcoin and other forms of Cryptocurrency or send them money.

In the world today, Cryptocurrency is an extremely significant asset with great value to scammers. It is vastly portable, liquid, and if a transaction is made, there is a high chance of it not been reverted. Because of this, scammers are filled in the digital world.

In this piece, I will be showing a few Cryptocurrency scams which are common in the digital world today.

Top Five Common Cryptocurrency Scams

1. Social Media Giveaway Scams

The level of generosity on social media nowadays is quite astonishing as a good number of people on Facebook and Twitter (Mainly) want to engage in giveaways.  There are several ways to spot these scams and avoid being a victim. To some people, the immediate way out is to stay away from social media and avoid participating in giveaway contests, but you need to understand that not every one of these giveaways is a scam. Other ways to avoid being a victim include:

Be vigilant when it has to do with coronavirus pandemic special offers, particularly the ones obtained from an unidentified source.

Check for typographical errors and blunders. Grammatical errors are frequent features of scams.

Do not ever share your bank account and personal details or passwords with anybody, even close relatives or friends.

1.Be careful not to click on unidentified URL links or share them.

2.Make sure to protect yourself using cyber securities.

3.Ways to spot social media giveaway scams

The social media giveaway account has not been verified, but it has a popular brand handle and name. Always check for the blue tick, usually next to a popular celebrity username or brand name. Always make sure that the giveaway is from a genuine and authentic account.

1.The social media giveaway account was created only recently.

2.The social media giveaway account uses stolen images.

3.There are so many tasks to be completed.

4.The social media giveaway account does not have terms or conditions.

2. Pyramid And Ponzi Schemes

They are different from each other, but they have similarities as they both rely on the participants and victims to bring in new participants, promising them amazing compensation.


The Ponzi scheme was given its name after the Italian fraud, Charles Ponzi. The Ponzi scheme usually is a fake investment that operates by remunerating old investors only, and the new investors go unpaid.

How it operates

The investment promoter collects a particular sum of money from the investor and guarantees to pay back Twice or three times the capital after a certain period. The promoter may be able to get two or more extra investors by the end of the predefined period. Then he will pay the first investor with the money gotten from the extra investors and probably convince them to invest again or invite other people.  As the platform develops, the investment promoter gets more investors to participate in the scheme, or he might not be capable of compensating the investors. In due course, the platform becomes unsustainable, the investment promoter may be caught or leaves with the cash he has presently.

3. Pyramid Scheme

The pyramid scheme works as a platform that guarantees investors' compensation and investors that invite new individuals. For instance, the fraudulent investment promoter proffers an investor the opportunity to get distributorship rights for a particular amount. Now the investor has rights to trade distributorships, thus getting paid for each member he/she enrolls.

Ways to avoid being a victim

1.Be skeptical

2.Be careful of spontaneous opportunities.

3.Investigate the promoter

4.Ensure that you are familiar with the investment

5.Make sure to report when you come across a Ponzi or pyramid scheme.

Fake Mobile Apps

Fake mobile application scam directs the users to install malicious applications. It is very easy to neglect the warnings of fraudulent applications because some of them imitate famous ones. As soon as the malicious application is installed, it will probably work as expected. Nonetheless, these fake applications are specially built to embezzle your Cryptocurrency.

Ways to protect yourself from Fake Mobile Apps

1.Check out for the rating and review, as scam apps usually have a lot of bad reviews.

2.Investigate the exchange’s website in order to ensure that they actually provide trading applications.

3.Take note of the number of downloads.

4.Check for legitimate website, company, and email address.

5.Update your phone security and download applications from only authentic stores like Google play.

4. Phishing

Phishing usually occurs when a scammer or a fraud impersonates a company or a person to steal personal data. It can come about through so many means like fake websites, email, messaging apps, or telephone, but messaging apps are commonly used for scamming individuals in the Cryptocurrency world.

How it works

The scammer will send you emails or messages to notify you of an error in your exchange account. This will need you to click on a link so as to solve the problem. The link then redirects you to a fraudulent website that resembles the real one and ensures you put in your credentials. By doing this, the scammer is able to extract your details and steal your Cryptocurrency.

There are different types of phishing; clone phishing, spear phishing, email spoofing, whaling.

Ways to protect yourself from phishing

1.Bookmark your most visited sites

2.Do not share your details with anybody.

3.Verify the content sent to you to check for traces of phishing

4.Verify the URL

5. Vested Interests

Vested interest normally means an individual stake or being involved in an outcome, project, or investment. When investing, never take an individual’s word lightly on what tokens or cryptocurrencies to buy because you do not know their genuine motives. To measure a project neutrally, there are several considerations to look into and questions to be asked. Some of them include:

What are the distinctive selling points that the exact project has?

1.How are the tokens or coins distributed?

2.How valuable will this token/coin be to the world? Is it actually needed?

3.Are there other projects operating with this exact thing? What makes this particular one better?

4.What is to be built?

To avoid being a victim of the Cryptocurrency scams, remain cautious and vigilant, be aware and wary of schemes these fraudsters make use of. Always make sure you are operating on authentic applications and websites.

About BitForex:

BitForex is an exchange service platform that can be classified as one of the Top 10 cryptocurrency exchange services. It is focused on providing millions of users with a digital currency trading and investment tool that is not only safe but also professional and convenient. BitForex has a high customer-oriented culture and state-of-the-art financial technology.

BitForex is programmed in a way that it can quickly adapt to the changes of the Crypto market while introducing new features like margin trading, enhanced trading charts,  derivatives, and a host of others. The headquarter of BitForex is located in Hong Kong, while there are branch offices in countries like the United States, South Korea, and Singapore.

More details:

BitForex / Social Trading / CAPP TownEazySwap

Scan to download for iOS or Android