Bitcoin is just one of the many cryptocurrencies that have been created over the last number of years. Crypto-currencies are digital currencies and as such, are ripe for those threat actors to take advantage of people that are not very knowledgeable about them. Bitcoin, like other crypto-currencies are used for a variety of reasons, and they can be purchased via an app, an exchange, a crypto-currency ATM or an exchange and then stored in a “digital wallet.” The fact that their value is constantly changing and that they aren’t backed by any legal protection, allows scammers to seek out those most vulnerable.

One of the key aspects that everyone interested in investing in Bitcoin is that the information is not always private. Transactions are often held in a public ledger referred to as a “blockchain.”  This includes receipts and payments as well as the individual’s personal information. It is not an understatement to say that dealing in Bitcoin and other forms of crypto-currency is taking a higher risk than standard banking; and scammers are very aware of this.

Identifying a Bitcoin Scammer

Bitcoin scammers have developed an entourage of successful methods to steal your Bitcoin investments.

• Too good to be true investment offers with large profit returns.
• Demanding payment in Bitcoin only.
• Requiring payment in advance.
• Impersonating normally credible companies, government agencies, or businesses.
• Investment opportunities with “zero risk.”
• Bitcoin deals offered via social media.
• Unsolicited Bitcoin offers via text, email or phone call.
• Requiring that you use their website and then “click” to log into your Bitcoin account.
• Contacting you on the pretense that they are a well-known celebrity that recommends that you “click” or scan their QR code to invest.
• An offer of guaranteed large payouts and/or returns in a short amount of time.
• A list of “happy investors” (these are fake and created by the scammer).
• Lots of big claims but little in the way of explanations or details.
• Pretending to be a business, job impersonator or government representative that you might trust and then requests that you send money via Bitcoin.
• Receiving an “alert” that there is fraud in your account and your Bitcoin is at risk.
• Impersonation of a newly established business offering a Bitcoin “deal” where they extend an offer of Bitcoin “coins.” These are fraudulent.
• Sending you what appears to be a valid news or social media article validating their service; however, these are completely made up. 
• Contacting via a fake job site, even offering a potential job and requiring Bitcoin to register.
• Dating websites that have members that request that you send Bitcoin to invest or for advice.
• Impersonating law enforcement, government agencies or even utility companies stating there is a problem and to get your account caught up you need to pay via Bitcoin.
• Phone call where the representative remains on the line and direct you to a crytocurrency ATM for a withdrawal and/or give you instructions for conversion.
• Unsolicited mail through the mail system with offers and Bitcoin payment information for a service, investment, or offering.

DaVinci Cybersecurity maintains up-to-date information on the many ways that Bitcoin and other crypto-currency scammers make attempts at stealing crypto-currency. We know that being aware of these scammers and their tactics is the best way to protect yourself and your investments.

Sharon Knowles, CEO DaVinci Cybersecurity

Source: consumer.ftc.gov/articles/what-know-about-cryptocurrency-and-scams