Social media provides easy access to a key demographic of digitally connected people who are/could be interested in getting into the Bitcoin game but who also lack the specialized expertise necessary to tell a legitimate from an illegitimate offer. Twitter, in particular, is a platform that has a huge active cryptocurrency family with people sharing price analysis, news, and thoughts on Crypto in general.
One of the benefits of cryptocurrency is that it is decentralized, unregulated by the government, and private. Then, what is it that makes Bitcoiners such easy targets on social media? Ironically, it is the same thing that makes Bitcoin more secure – its decentralized, anonymous, and irreversible nature.
4 Crypto Scams Rampant on Social Media
1. Impersonation
Clumsy editing of pictures taken from authentic social media sites. As you can see below, the image on the left is an authentic one; it shows a seminar in Singapore, ++while the one on the right has been edited. Coindesk recently called out these impostors functioning under the name Coindeskminers. For the uninitiated, identifying such scams on social media would not be a piece of cake. To support the presence of these impersonation accounts and create a sense of legitimacy, scammers are leveraging other accounts to falsify social proof. Hundreds of fake accounts and likes have come to light so far.
2. Fake giveaways
Since the beginning of 2020, scammers have been capitalizing on the high engagement on tweets from some of the most followed Twitter accounts in a scheme to trick followers into participating in cryptocurrency giveaways. The buzz around the Bitcoin halving had set up the stage for many. So much so that even highly prominent profiles like that of Elon Musk seem to have fallen prey to such schemes.
3. Malware
Twitter users propagate such malicious URLs as a way to earn profits in bitcoins. The URL leads to a website that attempts to download a malware-laden app. Such fake Bitcoin wallets hiding malware download prey on users looking to make easy money. You can download malware by simply clicking links in your email. Phishing emails are the most common way of widespread distribution of malware. You can also download it from websites and social media. Hackers simply need access to your BTC wallet, and poof, your money is gone.
4. Ponzi schemes
The principle of taking money from new investors to pay old ones can also be applied to Bitcoin Scams. A low initial investment can be multiplied by signing up additional members using referral links. Verify the credibility of such schemes before indulging in them.
When in Doubt, Always Confirm
It is not super easy to avoid or spot crypto scams on social networks. All these scams thrive on user gullibility. You can use the below simple ways to avoid scams so rampant on social media.
- Stick with well-known exchanges. Also, thoroughly verify any wallet before creating an account.
- When in doubt, check the authenticity of email communications received by – using the contact email address on their website, calling them, or reaching out to them via their official social media accounts. Do not reply to phishing emails.
- Checking URL authenticity – avoid websites promising ultra-high returns, and check if there is the word “secure” or a lock on the web browser’s address bar.
- When using Referral Programs, verify with the company for their credibility before signing up
To conclude, Social media is a big platform for engaging in even legit content on Cryptocurrency. We, too, have an active Twitter account and a Discord group. Also, here at Mudrex, we too have a Referral Program which is secure and gives amazing returns. Check it out before you use it. Check out our crypto blog as well to know more about trading and investing.
Bitcoins can be exploited to scam social media users, but the problem is more systemic than a few anecdotal examples. Bitcoin is a volatile enough investment as it is. Don’t increase your chances of losing money by falling prey to these Bitcoin scams. Be vigilant and trade safely.
