Something is definitely brewing in Facebook’s newly formed department. Early in May, there was a rumor that Facebook was interested in opening a cryptocurrency department within its headquarters. The advertised positions are: Two Software Engineers
Bitcoin is the single pioneer into digital assets and has attained high values of billions of dollars in virtual assets. The transaction system itself is still going through regulation processes in most of the global economies, where financial institutions advocate for governments to back digital currencies.
The delay in regulation opened up Bitcoin trading to incredible and innovative fraudulent activities. Also, the fact that the notion of digital assets was and still is fairly unfamiliar cripples a lot of ‘green investors’ and opens them up to losses through fraud. Another reason is the technology behind digital transactions. Basically, the value of Bitcoin is based on a technology that very few understand. Needless to say, all of Bitcoin fraud happens online and Cyber criminals use these innovative technological operations to serve their own purposes.
Majority of Bitcoin fraud victims are usually unsuspecting novices and occasional seasoned traders. I will highlight the most common ways in which Bitcoin scams are carried out and how to protect yourself.
1.Fraudulent Bitcoin Wallets
Fake wallets were the easiest way for scammers to defraud investors. These wallets first appeared as mobile applications on the Apple and Google Stores. Granted the majority of users are completely confident in the authenticity of the applications. And they do not engage in sale or purchase of coins. It’s difficult to detect fake wallets and investors should avoid using third party wallets without verifying the links and adverts of such wallets on the main websites.
If you are unsure of the wallet, ask for help from someone who understands Bitcoin and wallets specifically. Looking at the reviews might also be helpful but not guaranteed.
One Trustworthy Bitcoin wallet is Blockchain.info
You can also Store your Bitcoins in an Exchange such as Bittrex.com
2.Non-existent Bitcoin transactions
Believe it or not, one can learn how to do fake Bitcoin transactions right from the internet: not because it’s the easiest thing to do, but Bitcoin greedy miners/scammers are very innovative in how they do these transactions. It’s practically ‘impossible’ to duplicate a Bitcoin transaction. This is because once you transfer Bitcoins from one account to another, the distributed ledger network registers it as a submitted transaction and prevents you from doing it again and again.
The verification process alone is enough to discourage counterfeiting a Bitcoin transaction. Unfortunately Bitcoin transactions are not free of loop holes. In brief, it is a Bitcoin flipping trick, offering exchange of Bitcoins for cash and they are able to advertise the same offer to as many people as possible in a very short period of time. But the other end of the bargain is never held up.
Unsecured websites offering Bitcoin at discount prices
Temporary offers to sell Bitcoin for Paypal
3.Bitcoin phishing impersonators
Bitcoin fraud gave rise to one of the largest money laundering cases in 2017 when Russian citizen Alexander Vinnik was accused of laundering an estimated sum of $4 Billion in Bitcoin, part of which was obtained from a hacking scheme of a failed Bitcoin exchange Mt. Gox.
One of the easiest ways this is done is through running fake adverts on social media or impersonating the Bitcoin brand itself. The issue is that the scammers are so good at this that they even ask you to check your Bitcoin key on their website to confirm its existence. That is how Finish millionaire Aarni Saarimaa lost over 5,000 Bitcoins to fraudsters in Thailand, after falling victim to a casino project and the idea of an upcoming cryptocurrency.
4.Bitcoin Pyramid schemes
This is the oldest trick in the investment book. The working principle here is multi-level marketing. Selling an idea based on minimal investments for higher yields by signing up as many people as possible. Then like dominoes the original scammer always walks away with all the investment and the scheme collapses.
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https://www.youtube.com/watch?v=O3XvCbh8pQU reddit Buffer Facebook Twitter Author: CryptobonxCryptobonx is a Crypto –Currency and Blockchain Enthusiast.He is a believer of transforming complex information into simple, actionable content.
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