Top Bitcoin MLM Pyramid Schemes & Network Marketing Ponzi Scams?

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Sun Sep 09, 2018 2:36 am

How To Identify Bitcoin Scams

In order to protect yourself, you need to understand how transactions take place and how they are formed. It is important that you learn how bitcoins work to ensure you do not get involved in transactions that you cannot understand. If you do not understand the transactions, it is always good to consult an expert. Many people believe that bitcoin’s price is continuously increasing and that they always have a chance to make profit. They believe bitcoin is an easy way to make a quick buck, not knowing that the price can fluctuate and they may take losses. Bitcoin’s price falls mainly because of internal political reasons on the way it is structured.

People should be educated about the bitcoin blockchain so that it is not as easy for scammers take advantage of the market conditions. Scammers operate in many ways, but mainly the easiest path is to take advantage of a victim’s ignorance. They personally contact potential victims via social media and email with an interest to gain from their ignorance.

Bitcoin Scams To Look Out For

Bitcoin Ponzie Schemes

These are hard to identify because often appear to be legitimate for set period of time before they pack up and are revealed to be scams. They tend to benefit the first few people who join them, who then invite their friends and later vanish with all the money. They are common because they make a lot of money within a short period of time. Ponzie schemes are scams in and of themselves and are fraudulent systems that require you to invest in them with a promise to make huge profits in return. They require you to advertise their systems as a way of making more money.

You gain more profits when you refer other people into the system. Old investors are paid using the money collected from the new investors up to a point when the scammers have collected enough money, and then they disappear from the market. These scams are hard to identify immediately as the first few investors make profits. They encourage other people to join the system before the scammers disappear, leaving many of the newest investors in the wind.

Malware Downloads

Many scammers use bitcoin to fool victims to download software that ends up being fake and not working. They may also sell substandard products or even software that may cause harm to your computer. This is called a fake bitcoin wallet and it hides in malware downloads. You should always do your research and verify any software before you purchase it online. The scammers are normally interested in collecting your personal information to use it for their gain.

Once you click their content they direct you to their URL which has harmful content for your machine. The content attacks your computer and can cause harm to your data. They make various invitations through social media relating to bitcoin. You should be careful before clicking any links that you get via social media and email, especially if they are not from people you know and trust.

Phishing Impersonators

These are rampant on social media and use the bitcoin name as a tactic to gain a victim’s trust and give themselves credibility. They offer enticing services to users with the aim of gaining bitcoins from the victims. In the end, they do not actually offer the services they promise and do not return the victims payment. They take advantage of the victim’s trust as they present themselves as a legitimate enterprise. Once they gain your trust, they lead you to a spoofed website that is functional only to collect their payments and disappears after a short while.

They can also present themselves as an entity that is checking your bitcoin validity. Once you enter your password, they automatically phish your information and disappear. You should be careful and not trust anyone with your private key. Ensure you understand all transactions well before transferring any money to fictitious accounts.

Flipping Scams

These scams pretend to offer bitcoin exchange services. After paying your initial fee, they promise to double your investment within a short time. Once you invest, your bitcoin is stolen immediately. These scammers succeed because they are able to broadcast their activities to many unsuspecting people through social media. They widely advertise their services to many people and manage to get a good number of people who fall into their traps. The scammers require little money for the software but at the end of the day they make a lot of money from many unsuspecting victims. At times, they require small investments from you to entice you to make bigger deposits in the future.

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