Bitcoin’s recent surge beyond $90,000 and its approach toward the $100,000 mark has sparked widespread attention. Unfortunately, this rising interest also draws the attention of cybercriminals who see an opportunity to exploit the excitement of crypto investments.
As Identity Theft Resource Center’s CEO, Eva Velasquez explains, scammers thrive on creating urgency and confusion, preying on those eager to invest or transact using Bitcoin. Their goal is to capitalize on people’s fear of missing out (FOMO) and trick them into parting with their money.
The problem is further intensified by the abundance of legitimate strategies for making money with Bitcoin shared by credible sources. Combined with advancements in artificial intelligence, these scams are becoming increasingly sophisticated, making them convincing even for experienced investors.
The stakes are high; the FBI’s Internet Crime Complaint Center recorded over 69,000 reports of crypto-related fraud last year alone, with losses exceeding $5.6 billion. This figure represented nearly half of all reported fraud losses.
Today’s scams often involve fake investment bonuses, counterfeit coin promotions, phishing messages pretending to be from reputable crypto firms, Ponzi schemes, and even so-called “pig butchering” tactics. In the latter, fraudsters cultivate long-term relationships, sometimes posing as friends or romantic partners, to gain victims’ trust before persuading them to invest in fake platforms.
High-profile figures like Elon Musk are frequently invoked in these schemes. Scammers have even used fake videos or live streams of Musk to lure victims, promising to double any crypto sent before the stream ends. Such ploys are designed to exploit the credibility and fame of public figures, making their scams appear genuine.
Another tactic involves using fear to manipulate victims. For example, scammers may send texts claiming a crypto account has been compromised. If the recipient responds, they are pressured to share sensitive information, such as their seed phrase, enabling the scammer to steal their assets.
Coinbase’s Lead Information Security Officer, Jeff Lunglhofer, warns that these scams are effective because they appear credible and leverage fear to push individuals into rash decisions.
To protect yourself, experts say one should avoid responding to unsolicited messages or clicking on suspicious links. Instead, visit your crypto provider’s official website directly or use contact details you trust to verify any claims.
Fraudsters often replicate legitimate websites, tweaking URLs slightly to deceive users. Once credentials are entered on these fraudulent sites, funds are swiftly stolen. To counter this, experts recommend bookmarking trusted websites and sticking to well-established exchanges like Gemini and Coinbase.
Despite the adage that if something seems too good to be true, it likely is, many people still fall victim to scams because they fail to recognize red flags. Warning signs include high-pressure tactics, guarantees of unrealistic returns, or claims that crypto is the only acceptable form of payment. Doing thorough research is vital to avoid being defrauded.
For instance, Yaya Fanusie from the Crypto Council for Innovation recounts a case where a family member was lured by a company advertising a 150% return. A quick investigation revealed inconsistencies, such as a lack of credibility for the company’s founder and the use of encrypted messaging apps like WhatsApp to communicate—tools often favored by scammers.
A cautionary measure to take is verifying the legitimacy of any cryptocurrency or platform before investing. Check whether the token is listed on reliable price-tracking sites like CoinMarketCap or CoinGecko. Investigate the company’s registration details and see if it is regulated by organizations such as the FinCEN or SEC. Experts emphasize that skepticism and verification are your best defenses against fraud.
Crypto enterprises like Bit Digital Inc. (NASDAQ: BTBT) are also probably beefing up their cybersecurity systems in order to avoid being targeted by hackers and other illicit actors.
About CryptoCurrencyWire
CryptoCurrencyWire (“CCW”) is a specialized communications platform with a focus on blockchain and the cryptocurrency sector. It is one of 70+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, CCW is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today’s market, CCW brings its clients unparalleled recognition and brand awareness. CCW is where breaking news, insightful content and actionable information converge.
To receive SMS alerts from CryptoCurrencyWire, text “CRYPTO” to 888-902-4192 (U.S. Mobile Phones Only)
For more information, please visit https://www.CryptoCurrencyWire.com
Please see full terms of use and disclaimers on the CryptoCurrencyWire website applicable to all content provided by CCW, wherever published or re-published: https://www.CryptoCurrencyWire.com/Disclaimer
CryptoCurrencyWire
New York, NY
www.CryptoCurrencyWire.com
212.994.9818 Office
Editor@CryptoCurrencyWire.com
CryptoCurrencyWire is powered by IBN
