During the last few years, cryptocurrency has risen dramatically. Its rapid growth is great for people who want to invest, but it has also led to a huge increase in scams. A crypto scam on social media has grown almost as quickly as cryptocurrencies themselves.
Unlike traditional financial transactions, crypto transactions aren’t protected by law and typically cannot be reversed. It is also possible that the excitement surrounding cryptocurrency can make people more vulnerable to these scams, particularly if they have never invested in cryptocurrency before. Additionally, scammers exploit social media to carry out their nefarious activities. Continue reading the article to get aware of a few things that will protect you from social media scams regarding cryptocurrency.
Social Media Crypto Scams Are Rising
The Federal Trade Commission (FTC) reported 25 percent of fraud losses were caused by social media scams during the last year. Most of them include cryptocurrency-either asking for cryptocurrency payments or promising bogus cryptocurrency investment opportunities.
These scams are commonly carried out through Facebook and Instagram. For example, in Instagram’s list of the top bitcoin scams, you’ll find online shopping fraud, where someone offers to sell something for crypto but never actually delivers the item. Social media scams such as these are responsible for 45 per cent of all scams on social media.
Bitcoin scammers use Facebook and Instagram to impersonate other people. The scammers even hack into the real accounts of celebrities to act on their behalf. Afterwards, they will post about an investment opportunity or giveaway that looks as if it comes from a reputable source. Then, they give away their cryptocurrency or send their crypto wallets to these accounts, but they get nothing back. These hackers may also create fake websites and you might see them promoting their services on social media. Make sure you verify the website’s credientials before investing. Click here to know about authentic sites.
Many other crypto scams on social media, including fake initial coin offerings (ICOs) and NFT projects, seem to be real but aren’t. Another scammer pretends to be a prospective romantic interest or a family member. According to reports, crypto scammers generated more than $14 billion in profits last year, partly attributed to the growing popularity of decentralized finance (DeFi).
How to Identify a Crypto Scam
At first, crypto scams may appear hard to spot, especially since amazing success stories do come from this field.
At any point in time, if you came across a legitimate source promising with related to anything for which you feel like it is good to be true, in that situation, it is recommended to cross-check their account first.
If it doesn’t contain a checkmark to prove that the user has a verified account, or if they have a smaller following than they should, it’s probably a false account. However, hackers can also take over verified accounts, so having a verified profile doesn’t necessarily mean a post is legitimate.
Remember to be cautious about crypto posts that sound too good to be true. For example, free giveaways and guarantees to make your money back without any explanation are considered red flags. In addition, the fact that you can’t guarantee anything with cryptocurrency raises alarms since the currency is so volatile.
Generally, it’s best not to send money or personal information to anyone you haven’t met in person. If you find any of your friends or relatives acting strange by requesting money only via crypto, wire transfer, or gift cards. There is the possibility that their account could be hacked.
How to Report a Bitcoin Scammer?
Cryptocurrency enforcement is one of the top FTC priorities, especially when it comes to social media scams. If users spot a Bitcoin scammer on social media, here’s how they can report one.
Make a note of as much information as you can about the scam, but do not fall into communication with the scammer. You can then use the FTC’s cryptocurrency enforcement tool to report the infringement.
Similarly, if you encounter Bitcoin scammers on social media, you should report then and there. Social media sites like Facebook and Instagram include buttons next to profile and post pages that let users report content. Often, the site will disable a scammer’s account if the report has enough evidence or enough users report him.
Conclusion: Be aware of Crypto Scams on Social Media
It is easy to fall victim to social media crypto scams. By raising people’s awareness of these schemes, the FTC and social platforms can take action against them. This scam won’t go away completely, but it is possible that it will decline in popularity, or at least don’t trick as many people as before.