According to the bank, potential cryptocurrency investors usually make an average of three payments before recognizing they’ve fallen victim to a scam.
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.
To avoid impersonation scams in crypto, verify online profiles, be cautious of overly enticing offers, and employ multi-signature wallets for added security.
Artist Nelson Saiers’ “Rug Pull” highlighted the victims of crypto rug pulls and perceived SEC inaction in safeguarding investors.4131
A crypto exchange claiming $1.7 billion in daily trades on its website and $1.4 billion in daily trading volume on CoinMarketCap had reportedly displayed false license data.18545
Australian crypto exchange Swyftx said it had identified a rise in demand for crypto education during the bear market as the reason for its launch.8524
Responsibility for crypto scams does not only belong to the cryptocurrency industry, it also involves banks, telecoms and social media platforms, Australian exchanges say.6914
Scammers have made it impossible for Indian crypto traders to conduct P2P trades owing to several police complaints and bank account freezes that follow.2899
Remember HarvestKeeper, the AI project that scammed users for $1 million? You can expect similar AI-based scams to soar over the next couple of years.2832
A look at the different techniques employed by crypto phishing scammers and how users can stay protected.2568
The Department of Banking highlighted that Bitcoin of America failed to obtain a license as a money transmitter to operate Bitcoin ATM kiosks in the state.10625
Recovering stolen Bitcoin from crypto scams is challenging due to the anonymous nature of blockchain transactions and jurisdictional issues.12155
A call-center scammer impersonating President Joe Biden attempted to steal what they thought was $450,000 worth of Bitcoin from a streamer — instead, chaos ensued.17061
While the total figures are “alarming,” crypto scams accounted for 7.1% of the total $2.08 billion stolen from Australians in 2022.3664
As crypto traders became wary of making investment decisions amid the Terra collapse in 2022, scammers shifted to free giveaways and romance scams.4773
Co-founder Pablo Renato Rodriguez and three senior promoters all recently pled guilty to the charges, while the other founder pleaded guilty in October 2021.10397