The FBI says alongside regular methods of payment such as wire transfers and prepaid cards, crypto ATMs are also becoming a prominent tool for crypto investment scammers.
Bitcoin Scams News
Bitcoin scams (and other cryptocurrency scams) are an unfortunate aspect of this burgeoning industry. Bitcoin (BTC) was invented as an open, permissionless alternative to the traditional financial system, but with this freedom to transact beyond borders and central administration came opportunities for criminals to exploit this system.
Legacy financial and monetary systems are certainly rife with scams, but victims are (usually) able to seek recourse and justice in the traditional banking system. Bitcoin, however, does not have insurance policies or a customer support line.
Bitcoin scams can take many forms, including Ponzi schemes designed to enrich a few at the expense of many, cloud mining schemes promising accessibility and profitability in a centralized mining operation with little capability to deliver on either, and phishing scams designed to steal an unsuspecting individual’s cryptocurrency.
As regulatory agencies are tasked to enforce frameworks that protect consumers, there is an important distinction between acknowledging and preventing scams within the Bitcoin ecosystem and classifying the cryptocurrency itself as a scam.
Recent cases involving crypto fraud serve as a timely reminder to do your own due diligence until regulators take more action. If something sounds too good to be true, it probably is.2617
People over 55 and under 64 years of age represent the largest age bracket who have fallen prey to scams.3145
Regardless of the methods used by scammers to contact potential victims, the FDACS newsletter highlighted five red flags that can help citizens identify and evade possible scams.4979
Crypto Twitter user FatManTerra explained the fake investment scheme was used to teach people a lesson about investing blindly in crypto schemes shilled by influencers.10581
The general type of people Binance Australia has flagged as vulnerable users are the elderly, people that live in remote areas or those with disabilities.3166
Cryptocurrency YouTuber Bitboy Crypto has filed a defamation lawsuit against another prominent content creator on the platform.3092
A 19-part thread outlines the sophisticated strategies scammers are using to part crypto users from their funds.6506
Fake crypto apps appear to be part of an ongoing game of whack-a-mole with app store operators.4928
Hackers had access to multiple official social media accounts of the British Army for nearly four hours, when they posted crypto phishing links and scams.3056
Nearly half of the consumers who reported a cryptocurrency-related scam in 2021 said it started with an ad, post or message on social media.2661
“I never thought it could happen to me because I use tech. I’ve written software,” a victim of the pig slaughtering scam noted.9478
Australian consumer group CHOICE outlined its crypto regulatory framework in a submission to the country’s Treasury, calling for the new federal government to prioritize crypto in its financial services reforms.1989
“Capuci operated a fraudulent investment scheme and did not use investors’ funds to mine new cryptocurrency, as promised, but instead diverted the funds to cryptocurrency wallets under his control,” the DOJ stated.4367
A Bitcoiner called Felix Crisan outfoxed a crypto scammer, getting them to set up a Bitcoin Lightning Wallet before putting them in their place.8100