Avoid These Bitcoin Scams on Social Media Platforms in 2021

January 29, 2021 - Expert Commentary, How-To Articles

Bitcoin Scam

In this educational piece, we are taking the front-seat to educate our readers the importance of doing due diligence and outwit scammers.

Bitcoin is shooting for the moon again.

The pioneer crypto is soaring above previous record highs. This remarkable rally has resulted in the expected frenzy of activity and attention. 2017 was the only time something of this magnitude happened. The year 2021 has begun with Bitcoin prices going through the roof.

Unfortunately, just as a million good things came out of the Bitcoin industry, so did scams and nefarious actors. Scammers love Bitcoin because it is decentralized, and transactions are irreversible.  

These qualities mean that if a scammer covers their tracks well, they can pretty much disappear into the night after pulling off a heist. VBit Technologies is against all kinds of scams and notifies all crypto enthusiasts about this risk.

The internet makes scams especially efficient. Scammers can defraud people from remote locations and have wide access. Social media has made this reach useful for such entities.

Here are some prolific scams to watch out for:

Bitcoin Phishing Scams on Twitter, Facebook, and Instagram

Phishing is a common scam that targets vulnerable people who are then contacted to obtain sensitive information.

The scams could appear as a link on Twitter, a post on Facebook, or a direct message on Instagram. With close to 2 Billion on Facebook and hundreds of millions on other social media, scammers can go on a fishing expedition. For instance, you get a direct message on Instagram with a link that tells you to click and get Bitcoins instantly. To get them, you have to enter private keys to see if their Bitcoin balance is accurate. Someone who has been around the Bitcoin industry will know that this is a red flag.

Unfortunately, people who enter their private keys are phished and the scammer can seize their Bitcoins. VBit warns you against such scams because the consequences can be devastating. Don’t divulge personal information unless you have assurances it will not be phished.

These scams pose as legitimate institutions. They are rampant on social media. In the Bitcoin era, a phishing scam will pose as a Bitcoin brand to gain the victim’s trust and confidence.

Bitcoin phishing scams are often methodological and target a wide range of users. At this time when interest in Bitcoin is skyrocketing, they become particularly potent. Bitcoin newbies are most at risk because they are yet to realize the dark side of this industry.

Bitcoin Malware Scams on Twitter 

Malware scams are another prevalent tactic on social media. A common malware scam is fake Bitcoin wallets that hide malware downloads. The malware then systematically obtains personal information from your computer. For instance, a link on Twitter promising to double your crypto can lead you down a slippery slope.

It is this information that scammers prize in carrying out all manner of operations against the victim. It is common for hackers to develop malware and ransomware that target points of weakness. The security and authenticity of any Bitcoin outfit you interact with have to be above board.

To further enhance the security of your assets, it is advisable to use hardware wallets. These wallets are safe when malware attacks your computer.

Bitcoin Flipping and Exchange Scams

Flipping and exchange scams target vulnerable users. 

For instance, a flipping scam can offer to exchange money for Bitcoins instantly and vice versa. The entity requires you to sign up and pay a startup fee, which they will then take the Bitcoins you have deposited and double the investment. 

Later, the victim realizes that they did not intend to hold up their end of the bargain. Losing Bitcoins is painful, especially when you are made to feel gullible and reckless. 

Social media allows such scammers to broadcast their “services” far and wide. Avoid such flipping scams, even when they promise fantastical returns. 

Pyramid and Ponzi Schemes on Facebook Comments

Pyramid schemes are arguably the most sophisticated scam. They are systemic in their approach and often leave the victims most devastated. Ponzi schemes are sometimes not easy to recognize because they go to great lengths to look legitimate. Unfortunately, the end result is devastation and anguish. These pyramid schemes depend on social media marketing. On Twitter and Facebook comments, one could always find crypto adverts that look out of place.

Pyramid schemes often pose as high-yield investment programs and multi-level marketing operations. They use money from new members to pay older members. The new members have a signup fee, in crypto or fiat, which facilitates the whole operation. These new members have to recruit people into the scheme or do certain tasks to begin earning.

The cycle continues until the scammers have reached critical mass. There and then, the whole scheme begins to unravel. The scammers begin to give excuses for not allowing members to withdraw their funds. Some simply disappear overnight and leave their victims high and dry.

A telltale sign of a Ponzi scheme is the promise of absurd returns. These returns cannot be justified by any logic. However, the scammers know the allure of quick money and use it to their advantage.

There are plenty of cloud mining operations that turn out to be scams and pyramid schemes. These entities are even more difficult to discern. VBit Technologies is against these kinds of scams. For the record, we are not a cloud mining operation.

Cloud mining operations that promise too much reek of fraudulence. It is difficult to make consistently high returns through mining. There are variables like mining difficulty, Bitcoin prices, and other prevailing trends that factor into mining returns. Avoid such cloud mining scams by dealing with legitimate entities that make realistic promises about Bitcoin mining.

Avoiding Such Scams

The examples above illustrate ways that Bitcoin scams can target social media users. This list is not exhaustive. There are dozens of scams that use different tactics. 

The price of crypto freedom is eternal vigilance. Some scams are audacious and will go to great lengths, such as contacting you personally. VBit Technologies is aware of such scams and informs our users of their danger.

Security starts with you. All aspects of your Bitcoin handling have to be foolproof. The following are some tips for avoiding such scams in 2021:

  1. Avoid any promise that appears too good to be true. This characteristic is often a distinguishing aspect of scams. 
  2. Don’t trust without verification. For instance, if an entity claims to be capable of mining Bitcoin, they have to display actual Bitcoin mining data centers and related facilities. Avoid any rosy promises without proper backup. 
  3. Be wary of clicking on Bitcoin advertisements that seem too enticing may it be a link to your Facebook inbox, a link on Twitter, or any other social media platform. Malware is a huge risk with these enticing or flashy ads.
  4. Use reputable Bitcoin exchanges for trading purposes to avoid falling victim to flipping and exchange scams.
  5. Do not engage any Bitcoin entity that messages you directly without soliciting their services. Often, they target new users eager to mine through platforms like Reddit, Facebook, and Twitter.
  6. Ensure that any Bitcoin website you visit has a secure domain name and address. 
  7. Report any annoying and persistent messaging to relevant authorities to flag that operation.

VBit Technologies Is A Reputable Operation

With the risk of scams apparent, vigilance is non-negotiable. VBit Technologies recognizes the need for transparency in our operation. 

VBit is an equipment reseller that also provides hosting services for potential Bitcoin miners.

The hosting services allow people to participate in the competitive activity that is Bitcoin mining. This exercise is competitive and dynamic. It would be irresponsible to offer absurd returns, something that scams frequently do.

Bitcoin enthusiasts must educate themselves on all the processes this industry entails. It is easier to scam someone who has little information. The more you know, the safer you become.

Sign up with VBit today to learn more about Bitcoin mining!

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