Fighting Bitcoin Scams: Bad Actors Avoid Official Channels

April 16, 2021 - Expert Commentary, How-To Articles, VBit Against Crypto Scams

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

Scams are an unfortunate fixture of societal interactions.

Nefarious entities take advantage of the unsophisticated, and even sometimes the sophisticated, to make a quick buck. As they say, the price of freedom is eternal vigilance. You need to be on constant guard against such actors on the internet. VBit Technologies, as part of our commitment against all kinds of scams, takes the safety of our customers seriously.  We don’t want you to be another unfortunate statistic.

Behind every statistic is a person, a devastated face, a family left helpless.

Take the story of Frances Foster that appeared on the BBC in January.  Frances is a senior citizen with retirement savings, a demographic that is especially vulnerable to scammers. In 2019, she clicked on a Bitcoin advertisement from a company purporting to be from Switzerland.

The company offered really high returns for users who purchased Bitcoin from them. Looking to make money, Frances first paid 250 GBP, the equivalent of $330. She made subsequent payments, presumably from bogus claims this website made that she had multiplied her money through Bitcoin.

After investing a total of $14,800, she tried to get back her money to no avail.  Frances tried to contact her bank and fraud charities, including ActionFraud but is losing hope of ever seeing her money again.

Scammers are bold and ambitious

Like many who fall for such, she only realized the con after the scammers became slippery. This is a sad story, but it won’t be the last.

Some scammers go as far as to purport to launch entire cryptocurrencies. Ruja Ignatova is a curious case of a scam on steroids. The self-proclaimed “Cryptoqueen” managed to convince enough people that she had created a cryptocurrency that could rival Bitcoin.

She even staged an elaborate conference where she appeared before adoring fans in 2016. Admittedly, this was a time when public awareness regarding Bitcoin was significantly lower than today. 

Investors spent more than $30 million on “Onecoin” making it a ridiculously successful scam.

Eventually, the scam began to unravel, and Ruja disappeared leaving investors high and dry. This scam was one of many scams in the infamous ICO era between 2016 and 2018. Today, most people know better than to invest in upstart coins that promise the world in return.

Conducting Due Diligence to Fight Scammers

Due diligence is the only way to be one step ahead of scams. These kinds of fraudulent scams rely on the vulnerability of individuals and attraction to the promise of high returns. Should you compartmentalize this promise and conduct research to see whether the facts can support it, you may find that that the house of cards has nothing supporting it.

From these stories, it is evident that anyone can be a victim of scams. These entities generally use flowery language and exuberant promises. However, the people behind the scams tend to stay hidden to conveniently disappear once they have ripped you off.

From Frances’ story, you get to appreciate the importance of conducting due diligence. Most scams have loose ends that a person who looks hard enough can detect. Unfortunately, most people get carried away by impressive promises and forget everything else. People online lose millions daily to online scams. Do not be another unfortunate statistic.

The Use of Official Channels for Client Confidence

One way to distinguish reputable entities from scams is the use of official channels. Scams will go out of their way to hide the identities of the people running it.

Companies like VBit Technologies that take transparency seriously have the identities of important leaders in these organizations in the public realm. Operating with this level of transparency is important for miners as an assurance that VBit is against all forms of scams.

The use of official sites and features is a way to sift our legitimate entities from smash and grab ones. 

Here are some things that can help in that journey:

1. Provision of Physical Addresses

A legitimate company has to have registration and a physical address. This gives anyone trying to follow up on their claims a place to actually verify that the entity exists and its level of seriousness. 

Fraudulent entities normally have shady addresses that most people can’t access. VBit Technologies, for instance, has its official addresses in 1625 Washington Ave, Philadelphia, PA 19146, United States, meaning that anyone can go to the physical headquarters of the company and see that the mining repertoire of the company is factual. 

Besides, legitimate entities will make every effort to comply with legal and regulatory requirements. Check these to ensure that the entity in question is operating on the safe side.

2. Verifiable Identities of Company Executives

Company executives who are not visible is a red flag. 

VBit Technologies executives have their profiles in the public domain showing their professional expertise and experience. This makes them personable and verifiable as opposed to scams that promote a mythical perspective of their leaders.

Additionally, anyone can look up the profiles of our employees on LinkedIn. To run a successful Bitcoin hosted mining company, we realized that the operation needed the right blend of technocrats, business experts, and those who possess other relevant skills like marketing. 

Our employees reflect precisely that, and these skills have been invaluable in taking VBit Technologies to the next level.

3. Procedural Merit to Claims

Claims by a professional investment or business outfit just have to make sense. Simple as that. One thing about scams is that the lie often collapses on its own weight when you look close enough.

In the context of mining, the claims made by a mining entity have to tally with the nature of Bitcoin mining. This activity is laborious and takes some time to see the results. Anyone who claims that it rewards overnight is selling you a pipe dream. 

VBit Mining is always upfront about the nature of mining and the time it takes to see the benefits.

4. Nature of website

Scams are often colorful with promises meant to grab your attention and exploit your desire to make money. 

Professional business websites have an educational aspect that informs their users of how they will actually mine Bitcoin. There has to be a value proposition to the business. 

VBit Technologies has a blog to inform our customers of anything and everything they need to know about Bitcoin mining. This is in line with the commitment to bring Bitcoin mining to the public and demystify the opportunity. 

Mine with VBit: Avoid Bitcoin Mining Scams

VBit Mining is steadfast in its commitment to the highest standards of transparency and quality. The information about our executives is available for all to see and should be taken as a statement of our accessibility and commitment to service.

We offer the commitment to support our users and make their Bitcoin mining journeys simpler and more accessible.

Our users can attest to the professionalism and delivery. We have a direct line to the leading ASIC manufacturer in the world, Bitmain, to ensure that the equipment we source provides our miners with the competitive advantage they need.

Join us today to learn all that Bitcoin mining has to offer!

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