Investing and trading Cryptocurrencies like Bitcoin has become a lot more popular in recent years. As more people begin to learn about the value of Bitcoin, the easier it becomes for cybercriminals to come up with Bitcoin MLM scams. The popularity of digital currencies has resulted in cryptocurrency scams being on the rise. Although many people these days have heard about Bitcoin, a lot of them still don’t understand how trading the cryptocurrency actually works. Because of this, it’s easy for people to fall for Bitcoin MLM scams.
Trading cryptocurrencies isn’t something people should be afraid of doing as long as they understand the correct way to do it. The best way to make sure you don’t fall victim to a Bitcoin MLM scam is to know how to spot one. Let’s discuss the different types of Bitcoin MLM scams and how you can avoid falling for scammers tricks.
The Different Types Of Bitcoin MLM Scams
Since cryptocurrencies are a relatively new form of investing, scammers can take advantage of people who don’t know a lot about it. Here are the different types of Bitcoin MLM scams to look out for.
Bitcoin Ponzi Schemes
This type of Bitcoin MLM scam starts by someone reaching out via social media or email, asking you to be an early investor in a Bitcoin fund that promises to double your investment quickly. In return, all you need to do is advertise the fund to your friends and family. The way that the scam works is that the early investors get paid with the money from later investors and then shut down the fund and are never to be heard from again. This scam can be difficult to spot as it seems to be going well since the early investors appear to be making quick profits. The key identifier here is that the scammers ask you to promote their fund to your friends and family. A legitimate fund would never approach investors via social media or ask you to pitch the idea to friends and family.
Bitcoin Malware Downloads
One of the things that makes cryptocurrencies great is that they can be bought and traded right from your phone. Unfortunately, this has resulted in a lot of scammers coming up with fake or counterfeit trading apps. When a user downloads the fake app, it actually downloads malware onto your phone or computer. The scammers can then use this software to access the personal information stored on your device. It’s important to do your research and verify any software before downloading onto your device.
Bitcoin Phishing Impersonators
A Bitcoin phishing impersonator scam is when someone reaches out to their victim’s via social media or email, pretending to work for a business that trades Bitcoin. The phishing email or message appears to be legitimate and includes a link for you to click on. The link takes the victim to a spoofed website that asks for you to make a Bitcoin trade or to enter your password. The website steals your information or payment and then disappears.
Bitcoin Flipping Scam
This type of scam pretends to offer a bitcoin exchange service. This promises to double their clients investments within a short amount of time. Once you send through your bitcoin investment, it’s stolen instantly. Once you send your bitcoin to someone else, that person immediately owns it and there is no way of getting it back. This type of scam usually happens via fake social media profiles.
Tips To Avoid Falling For Bitcoin MLM Scams
Luckily for you, you can stay ahead of cyber criminals and avoid falling for Bitcoin MLM scams with these tips.
- Never trust a “get rich quick” scheme! If someone is reaching out to you via email or on social media with an investment opportunity that sounds too good to be true, then it probably is.
- Always do your research. Trading bitcoin is completely safe as long as it’s done on a legitimate platform. Do your research first before downloading software that offers bitcoin trading.
- Avoid clicking on links in emails or messages that you aren’t sure are legitimate.
- If an investment opportunity is asking you to recruit your friends and family to invest then it is likely a scam!
- Check that a website is secure before entering your personal information. A secure website will include a padlock in the address bar.
Stay Ahead Of Scammers With Anti Fraud News
Bitcoin transactions are irreversible so it is almost impossible to recoup your money once it’s been sent via the blockchain. Staying ahead of cybercriminals is key to make sure you don’t become a victim of a bitcoin MLM scam. Keep checking our blog for the latest in anti fraud news!