Most popular warning signs of Bitcoin scams

Where there is money, the scammers will be there; this is common knowledge. Thus, as technology advanced, skilled con artists started to steal Bitcoin and other cryptocurrencies.

While some types of Bitcoin scams are entirely new, many more common crypto-related schemes use time-tested methods to achieve their objectives. Whether it be Bitcoin fraud or phishing scams, practically all types of fraud depend on the con artist’s ability to gain the target’s trust. Since they are known as “con artists,” it is about seducing a target audience.

However, there are many firms dedicated to recovering funds from Bitcoin scams that one need not worry. These firms offer fraud recovery services, including getting money back and impersonating criminals.

What does “Bitcoin Scam” actually mean?

Bitcoin scams occur when a person or group deceives another into sending them bitcoin before taking off.

Recovering a bitcoin used to be complicated. But today, things are different. A plethora of fund recovery businesses has emerged in recent years. These businesses want to bring justice to people like us by getting the lost bitcoin back with their cryptocurrency and bitcoin scam recovery experts.

Most popular Bitcoin scams one should avoid:

Downloads of malware:

Scammers use the strategy of getting people to click on social media-shared URLs. This one uses the allure of Bitcoin to persuade people to click on a URL that subsequently downloads an application containing malware. Be wary when you encounter any social network URL that is truncated or not secured with an HTTPS connection since fake Bitcoin surveys are regularly used to distribute malware.

Utility spoofing scams:

The only difference between this bitcoin scam and the previously mentioned one is that the perpetrators pretend to be utility firm employees and threaten to disconnect the victim’s electricity or other utility services if payment is not made soon. The scammer may use a phone number spoof to make it seem that they are contacting your utility firm. 

The fraudster will provide the target with a QR code and direct them to a Bitcoin ATM to complete the transaction. This con focuses on how the victim is most likely to succumb and immediately follow their directions to make a payment. Once more, there is no fee required. Call your actual utility company’s phone number after hanging up.


On social media, impersonators exist and mimic the Bitcoin brand to gain a victim’s trust and credibility. For instance, this phishing website tempts users to enter their private Bitcoin key in a search field to see if it is already in their database. Once it is inputed, the private key will be phished, enabling the con artist to purchase directly from the interested Bitcoin owner’s wallet.

Frauds impersonating the government:

This is the most well-known kind of fraud. A fraudster dissembling to be an agent of the IRS, Social Security, or another government organization is a common feature of several bitcoin scam types. For instance, if the victim doesn’t pay a fake bill, the fraudster would call and threaten them with jail time. They might even assert that “scammers” have accessed your bank accounts and that you need to provide money immediately to stop them from being emptied.

Often, the perpetrators may know specifics about the victim, which gives them the appearance of legitimacy. Your phone number can be spoofed; for example, you can receive a call from a government office. The victim would receive a QR code from the scammers, who would then direct them to a Bitcoin ATM to complete the transaction. This con depends on the victim being anxious and mindlessly following requests to send money. No money is to be paid. These are Bitcoin scams.

Giveaway rip-offs:

Another well-known variation is the freebie scam. Fraudsters pose as famous people or prominent Bitcoin investors and promise to help small investors. They promise that if you send them your Bitcoin, they will add some of their own to help multiply funds. The money never returns because it is immediately deposited into the scammers’ wallets.

Pyramid scams using bitcoin:

Although some bitcoin scams are harder to spot, the result is the same: the fraudster steals the victim’s Bitcoins. High-yield investment plans and multi-level marketing techniques are the foundation of this tried-and-true system. In these nefarious schemes, a modest starting reward can be increased by enticing and signing new members via referral links. Then new members are inspired to do the same, and so on. The operation soon gathers hundreds of victims as a result. The pyramid eventually falls apart after the first conman leaves.

Bitcoin scam warning signs:

Whether or not someone claims to be registered with the authority, one should be cautious if one notices any of these red flags:

  • Guaranteed high investment returns: The traditional signs of fraud include guarantees of high investment returns frequently accompanied by low or no-risk pledges. Every investment involves some risk, and increased risk is typically associated with the possibility of substantial gains.
  • Unexpected and unsolicited investment return proposals that look “too good to be true” could be a hoax.
  • Investment Payment Methods: Red Flags
  • Charge cards: Customers cannot generally use credit cards at most legitimate, licensed investing firms.
  • Using digital asset wallets or digital assets for investment is not required of customers by regulated and authorized financial institutions.
  • If you pay for an investment using a wire transfer or a check, exercise caution if you’re asked to send the money to a specific person or independent company. The location could be questionable, or you could be advised to explain that the price is for a different purpose than the investment. If you send money overseas for an investment that turns out to be a bitcoin scam, you certainly won’t see it again.

Knowing these warning signs would help you stay safe from con artists.


The name, address, registration number, logo, photograph, or website of a firm that is registered or has been registered previously, as well as an investing professional, may be stolen by scammers. Websites with characters or URL addresses that resemble those of legitimate businesses or financial gurus may be created by scammers. 

Investment fraud should be avoided, regardless of whether the con artists pretend to be SEC-registered. Fraudsters may falsely claim their company’s SEC registration to attract investors. Unsolicited offers that seem “too good to be true” could also be bitcoin scams.