Bitcoin and other forms of cryptocurrencies are predicted to be the future for digital transactions and all sorts of typical payment scenarios where physical money would normally be the default option.
However, as cryptocurrency law firms will confirm based on their experience in handling cases for clients, there are still plenty of ways to become the victim of bitcoin fraud if you are not vigilant or aware of the warning signs that something is not right.
Here is a look at key scenarios and fraudulent flags to be on the lookout for.
How secure is the website?
One of the most obvious pointers to look out for would be to know how to spot a fake website that is only there to lure you in and take money from you.
An alarming number of imposter websites exist with the sole purpose of pretending to be something they are not and many are intended to look identical to a genuine website that is legitimately processing bitcoin transactions.
Read the URL carefully and if the address does not start with https this means it does not have the required security protocols and could be a fake site.
Be careful when using an app on your phone
Many of us like to browse and complete transactions via our smartphone these days and it would be perfectly normal to download an app that allows you to trade bitcoin and other cryptocurrencies.
However, you should be wary of fake apps that tend to appear in app stores, sometimes for a few days until they are removed once their scam is uncovered.
Make sure you are happy that the app is genuine before downloading it.
Watch out for fraudulent emails
Email scams are nothing new and, unfortunately, the scammers have updated their tricks to include offerings and links that are purely designed to target you for fraud.
Always check a link by hovering your mouse over it to check where the click is directing you to and be cautious about an offer that seems to be too good to be true, as it may well be an offering that comes from a fraudster.
Social media platforms are another fertile source of victims for bitcoin scammers and celebrities can sometimes unwittingly be following a malicious site without even realizing it.
The bottom line is that you really shouldn’t put much faith in any bitcoin offers that originate from popular platforms such as Facebook and Twitter, even if they seem to be endorsed by a popular celebrity that you follow.
Another problem that you have in this sphere is that bots are consistently being used to impersonate celebrities and lure you into a trap, especially when it comes to cryptocurrencies.
Although there is a veritable tsunami of fraudsters operating on the internet with the sole intention of stealing money from you via something like a bitcoin scam, if you are vigilant and think twice before taking action you should be able to spot the fraud before it’s too late.