BitCoin Scams
Navigating the World of Crypto: Tips for Avoiding Scams
Despite the belief of many crypto enthusiasts that centralized exchanges (CEXs) are safer, history has often shown them to be rather vulnerable to attacks. Because these exchanges centralize the storage of users’ assets, they can be attractive targets for cybercriminals. If an exchange’s security measures are inadequate or successfully compromised, user assets may be stolen or lost. Another risk of centralized exchanges is the potential for fraud or mismanagement by their operators. Since CEXs may have a single point of control, they may be more susceptible to insider fraud or other forms of misconduct — which can lead to the loss of funds or other negative consequences for users. Over the last year, with the collapse of major centralized cryptocurrency platforms like FTX and Celsius, more...
Florida govt warns against auto warranty scammers asking crypto payments
The Florida Department of Agriculture and Consumer Services (FDACS) issued a warning sharing insights into identifying robocall scam marketing auto warranties, which includes being asked to pay for the services via gift cards and cryptocurrencies. Consumer complaints against increasing robocall scams — wherein scammers use prerecorded calls to market and sell fraudulent services — led the Enforcement Bureau to order phone companies to avoid carrying robocall traffic. Regardless of the methods used by scammers to contact potential victims, the FDACS newsletter highlighted five red flags that indicate scams. Five red flags for identifying scams. Source: fdacs.gov Stressing on some of the go-to payment methods often being recommended by the scammers, the announcement read: “Payment...
Are crypto and blockchain safe for kids, or should greater measures be put in place?
Crypto is going mainstream, and the world’s younger generation, in particular, is taking note. Cryptocurrency exchange Crypto.com recently predicted that crypto users worldwide could reach 1 billion by the end of 2022. Further findings show that Millennials — those between the ages of 26 and 41 — are turning to digital asset investment to build wealth. For example, a study conducted in 2021 by personal loan company Stilt found that, according to its user data, more than 94% of people who own crypto were between 18 and 40. Keeping children safe While the increased interest in cryptocurrency is notable, some are raising concerns regarding the ways those under the age of 18 are interacting with digital assets. These challenges were highlighted in UNICEF’s recent “Prospects for children in 202...
Netflix announces new series on Bitfinex hack involving 120,000 Bitcoin
Streaming and production giant Netflix will soon produce a documentary series on the infamous Bitfinex hack — one of the biggest financial crimes from 2016 stealing 119,756 Bitcoin (BTC) — worth $72 million at the time. The Netflix documentary will be centered around a New York-based couple and their link to laundering nearly 120,000 BTC tied to the crime. According to Netflix, the documentary will be directed by American filmmaker Chris Smith with Nick Bilton as the co-executive producer. The announcement read: “Netflix has ordered a documentary series about a married couple’s alleged scheme to launder billions of dollars worth of stolen cryptocurrency in the biggest criminal financial crime case in history.” The plot is based on two main characters — Ilya Lichtenstein and Heather M...
Beware of sophisticated scams and rug pulls, as thugs target crypto users
This year has been monumental for the cryptocurrency sector in terms of mainstream adoption. A recent report published by Grayscale Investments found that more than one-quarter of United States investors (26%) surveyed own Bitcoin (BTC), up from 23% in 2020. With the holidays around the corner, financial services provider MagnifyMoney also found that nearly two-thirds of surveyed Americans hope to receive cryptocurrency as a gift this year. While crypto’s growth is notable, there has also been an increase in the number of scams associated with digital assets. A Chainalysis blog post highlighting the company’s “2022 Crypto Crime Report” revealed that scams were the dominant form of cryptocurrency-based crimes by transaction volume this year. The post notes that over $7.7 billion ...
Indian prime minister Modi’s hacked Twitter account attempts BTC scam
The official Twitter account of Indian Prime Minister Narendra Modi got compromised earlier today, which was then used to share misleading information about the mainstream adoption of Bitcoin (BTC) and redistribution of 500 BTC among the Indian citizens. On Dec. 10, Modi said in a virtual event virtual summit hosted by US President Joe Biden that technologies such as cryptocurrencies should be used to empower democracy and not undermine it: “By working together, democracies can meet the aspirations of our citizens and celebrate the democratic spirit of humanity.” While the long-awaited Lok Sabha Winter Session, a parliamentary meetup intended to discuss the legality of cryptocurrencies in the region, did not conclude the government’s stance on crypto, hackers from unknown origins man...
How to Avoid Bitcoin Scams in South Africa
The bitcoin price surge in these recent months has drawn the interest of investors from different spheres. People want to buy bitcoin and quickly make money off it, which has left many people vulnerable to Ponzi schemes, quick money schemes, and other forms of scams. The hype around bitcoin has given most people the impression of a quick and easy return on their investments. The hype has caused an increase in its adoption, as well as an increase in scams and frauds by people who capitalize on that perception to steal other people’s money. Bitcoin and other cryptocurrencies being decentralized currencies are seen as the future of currency. It is created, stored, and distributed using blockchain which is a decentralized ledger, so unlike fiat currency, it is not regulated by the government. ...
