How to Avoid Bitcoin Phishing Scams | Guide

Phishing takes many different shapes. Any cybercrime’s primary goal is to make money through dishonest means. A financial incentive motivates hackers to target an international company and steal its data. Attackers are increasingly targeting those with digital wallets as cryptocurrency becomes a more widely accepted financial tool.

Bitcoin scams are damaging cryptocurrency’s reputation. Is this the expected development of decentralized money like bitcoin? Scammers are currently more likely to target bitcoin novices due to the absence of legislation for digital currency and the Bitcoin community’s inclination for self-regulation. Unfortunately, bitcoin scams are not going away. Therefore, we can only be informed and take precautions online.

Bitcoin scammers made $14 billion in 2021. As Bitcoin and other cryptocurrencies rise, hackers and scammers attack them more frequently. In light of this, individuals who actively purchase, sell, and trade coins like Bitcoin must be aware of their risk.

We’ve developed this post to show you the most typical Bitcoin phishing scams you’re likely to see to lessen the likelihood that you may fall for one of these scams. Knowing the different forms that phishing emails take can help you spot them faster and stop them before someone steals your hard-earned cryptocurrency.

Most Common Bitcoin Phishing Scams

Phishing emails typically have a financial service as the sender, leading bitcoin owners to divulge details about their private wallets unintentionally. In addition, attackers employ various tactics to trick their audience, whether it’s a service impersonation or a false email exchange.

Try to look for the following emails when you check your inbox since they can be a clue that someone is attempting to steal your information:

Scam #1: Reset Passwords Request to Crypto Account

Password resets are a common scam tactic to steal Bitcoin and other cryptocurrencies. Yet, they are by no means limited to those involving cryptocurrencies. For example, a hacker can strictly replicate a password reset by copying an email’s design from an exchange.

They will notify their victims via email that they need to change their passwords. The reset link within this email will then navigate to the attacker’s website, where they can grab the previous password and use it to log into accounts.

If a hacker has access to your account for even a brief period, they can cause permanent damage, especially with Bitcoin and other cryptocurrencies, which are largely irreversible transactions. Therefore, verifying the source of your password reset emails is always an innovative practice. Even better, never use an email to reset your password. Instead, always manually Google the website.

Scam #2: Impersonation

It’s pretty simple to build fake profiles in the online world, discover images, and put together an entire bogus identity. The bitcoin community has witnessed numerous fraudulent accounts create profiles over the past few months, garner followers, organize a giveaway, and then vanish without a trace.

Always double-check who you’re chatting to online, whether through private messaging and demanding cryptocurrency or hosting giveaways that inserts malware onto computer systems.

In an extreme instance of impersonation, back in 2020, a group of hackers were able to access several famous people’s Twitter accounts.

When it comes to crypto, always be skeptical of offers that appear too good to be true.

Scam #3: Fake Transactions

There have appeared what seems to be hundreds of DeFi exchanges in the last 18 months. Exchanges from all over the world have flooded a market previously dominated by a few powerful companies. With all this happening, receiving an email to help you sell or purchase Bitcoin at excellent prices is not unusual.

Sadly, many of these emails are phishing scams, with the bogus exchange only attempting to gather data to hijack the user’s money. Try to stick with well-known, trustworthy websites and consistently access them via Google rather than email.

Scam #4: Fraudulent websites

Any unreliable internet site that is used to trick people into engaging in fraud or malicious attacks is a scam website. Scammers use the internet’s anonymity to hide their genuine selves and motives beneath numerous guises. These could consist of fake security alerts, gifts, and other dishonest formats that seem legitimate.

Even though you can do many valuable things online, not everything is as it seems. Websites created for various criminal objectives can be found among the millions of legal websites competing for users’ attention. These websites try everything, including bitcoin scams and identity theft.

Scam #5: Phony Coins

Despite not being directly tied to Bitcoin, a significant number of fraudulent ICOs have been created throughout the history of the blockchain. In 2018, when 80% of all newly launched cryptocurrencies became scams, this situation was at its worst. Therefore, it’s not the best idea to invest in coins very early, especially if the project appears to have little documentation.

Even while claims of 100x profits can be alluring, do comprehensive research on any project before deciding to invest. Start by reading their white paper, then look into their tokens and fundamentals to discover if this project is genuinely worth investing in or if it’s all just hype.

In the same way, resist the urge to take advantage of an email that offers an airdrop in return for a modest Bitcoin charge. No matter how appealing the prospect may seem from the outside, you should never give out account information in an airdrop. Remember that phishing emails are widespread; sadly, you are more likely to run across a scam than a legitimate crypto opportunity.

Conclusion & Recommendation

Even in 2022, there will still be a lot of scammers, hackers, and bad actors operating in the cryptocurrency world. Attackers will do whatever to enter user wallets and take advantage of them because of the enormous value of this sector, particularly the biggest cryptocurrencies like Bitcoin.

You are cautiously crossing the front lines of bitcoin frauds and exploits as you carefully look through your communications. Unfortunately, what appears to be a straightforward email may contain much darker intentions. As a result, your Bitcoin could be at risk, so always take your time, read thoroughly, and avoid clicking links from unknown companies.