Bitcoin now is so huge and out of control which makes it a perfect platform for scammers to dive in and try to defraud people interested in bitcoins. Since Bitcoin transfers are anonymous and no return, scammers know once the SEND button is clicked, there is no return. So below are 3 ways you can spot and avoid bitcoin scams.
1. Too Good To Be True
If you find an add or someone tells you to invest in bitcoin through his or her site and you will get a 10% interest per day, run as fast as you can. This is the most common way scammers get desperate people who thinks they can get rich overnight. Avoid this types of investments because as soon as you invest in this, You bitcoin and money is lost in the wind.
Before investing through any company, always check if the company is legally registered. Even if the company is registered, still do a proper check up because scammers too are improvising their methods to cheat any vulnerable investor.
2. Spooky Government Agencies
These scam agencies will call you and tell you about a debt you are owing the agency. The agencies threaten to jail the victim unless the victim can repay the debt. Since most people do not want to get separated with their family, they will fall for this scam. The agencies will then ask the victim to transfer the money the victim is owing through bitcoin. Once this transfer is done, that will be the end of the story. Since you cant trace bitcoin transfers, there wont be anything you can do about it.
Always make sure you call your lenders through phone and if possible go there in person before making any repayments of your debt. But if you don't know of any debt that you owe, then you don't have to stress about this scam.
3. Phishing Emails and Text Messages
This is an old scam and most people know this type of scams nowadays. Scammers send the victim an email or text messages pretending is from the victim's bank, bitcoin trader or bitcoin exchange service provider. These scammers put spy links on this emails and text messages. Once the victim clicks on that link and sign in his or her bitcoin credentials, the scammer will have every details and will log in and make a transfer from the victim's bitcoin wallet.
Make sure you always double check if the email or text is coming from your bank before clicking on any link. Once you click the wrong link, your laptop or phone or computer will be a spying channel for the scammer.