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Investment Bitcoin Scams

General Investment Scams

There are many fraudulent investment opportunities these days surrounding BTC. Bitcoin investment scams frequently take the form of websites or social media personalities who guarantee to get you incredibly high returns for minimal investment with them. They will then ask you for further funds sent to them in BTC so they can “release” you initial profits.
  • Any investment company requesting that you send them BTC instead of standard forms of payment should be considered fraudulent.
  • Any investment company asking you to pay them more than your initial investment so they can release your funds should also be considered fraudulent.
  • Should you come across these types of investment scams, you should report them to your local authorities.

Online Exchange Scams

Criminals will create fake cryptocurrency exchange websites to deprive you of money and compromise your private information. These websites often look professionally designed and may claim to be affiliated with legitimate, well-known organizations.

These sites entice customers with unrealistic, below-market prices for selling Bitcoins. Anyone offering such out-of-the ordinary discounts or returns is usually a sign of a scam.
  • Never send Bitcoin to a new exchange without first checking its URL for the green lock symbol or ‘https’ tag.
  • Type each letter of the URL into your address bar manually to ensure you aren’t clicking on a site pretending to be a legitimate site, and watch for small, hard-to-notice differences in these letters in the URL.
  • In the United States, all businesses that exchange cryptocurrencies for U.S. dollars are required to register with FinCEN, a branch of the United States Department of the Treasury.

Cloud Mining Scams

All new Bitcoins are created through a process called mining, where a worldwide network of powerful computers perform complex mathematical operations to verify new Bitcoin transactions and add them to Bitcoin’s general ledger, the blockchain. In exchange for performing this service, these computers receive a reward from the network in the form of new Bitcoins.

Mining is a very real part of the Bitcoin economy, but unfortunately most of the websites promising quick gains from renting these mining computers are fake.
  • Be on the lookout for companies making bold claims about their mining fees and returns without any supporting information.
  • It’s essential to research opportunities and understand the risks and costs associated with any mining company before investing your money.