The main types of fraud and real examples of fraud.


In the wake of the popularity of cryptocurrency, a lot of scammers appeared, who happily offer to “get Bitcoin in one day”. Many fraudulent sites, exchanges and exchangers have been created that offer to get Bitcoin for free immediately or in the future in exchange for some seemingly harmless actions.


Remember, earning Bitcoin in one day is impossible. Unless you own a powerful mining farm. There are no other options. When you are promised transcendental profits, you are deceived.


Now scammers of various stripes have chosen a cryptocurrency theme. There are several main types of frauds.


Types of fraud

  • Fake sites. Such fake sites are often similar to normal sites: for example, the phishing address of the cryptocurrency wallet “My ether wallet”, in which one letter is missing - “wallt” instead of “wallet”. The user believes that this is a normal wallet or exchanger site, transfers money there and ... neither Bitcoins, nor money sent. The purpose of such sites is to steal the registration data of the user or force the user to transfer their own cryptocurrency to their site for the purpose of exchange or storage. And your coins disappear forever in the wallets of fraudsters. Such sites often appear first in search engines as advertisements or due to the skillful work of SEO specialists. Official honest services usually earn only a small fee for their services, and phishing services steal all the money transferred to them, so they can spend much more on advertising.
  • The Pyramids. These sites are aimed at crypt owners who want to multiply their assets. The creators of the pyramids offer to invest your own cryptocurrency, putting tokens on deposit. And they promise to user a very high profit - 2-3% per day. And often a Bitcoin in one day. A prime example is the Trinity platform. The first three months the service really paid the promised interest, thereby involving more and more new customers through the referral program. Then the payments are over. It turned out to be a classic pyramid. Sometimes these pyramids offer to get Bitcoin without any investments at all. This is an even more cynical way of cheating, since most often you are invited to bring a certain number of friends. In this case, you give a generous percentage of the amount invested by your friend. The result is that you steal from your friends.
  • Fake cloud mining. Fraudsters sites offer users to mine cryptocurrency, renting computing power using the site. You pay the rent, and the counter shows you how new coins are mined. But when you try to withdraw money, a "technical error" occurs. Not all such services are frauds, but very many of them. 

    Usually, such service is provided in an honest way by manufacturers of mining equipment, for example, Bitmain and other large players with a good reputation.

  • Exchange via Skype or Qiwi Wallet. The fraudster offers to sell or exchange cryptocurrencies. In Skype or another messenger asks to show the screen of the wallet to make sure that there are really funds on the account. And then asks to form a voucher, usually, "to test the system". The code is displayed on the screen, and the scammer activates the code and transfers the money to his account.
  • Double deception. This is a scheme between a fraudster and a victim, in which the bitcoin seller does not participate at all. The goods are displayed on the website at a very low price, and the customer is asked to make an advance payment on the card in order to book the goods. They give the card number of the Bitcoin seller, to which the trusting client transfers money. Bitcoins are transferred to the scammer, and the buyer is left with nothing. As a result, the cryptocurrency seller is not even aware that he received a transfer from a third party. But the deceived buyer goes to the police and writes a claim on his name.
  • Street scammers. Several stories have already happened to the residents of Russia, when they were offered to buy Bitcoin on the street or on the train. In exchange for money, fraudsters sell souvenir coins that have no real value. Remember that physical Bitcoin equivalents do not exist in nature.


How to avoid cheating?

  1. Remember, there ain't no such thing as a free lunch. Nobody wants to just give you money. Don't get fooled by the pyramids and cloud mining at low prices. Check the reputation of investment funds. If the fund offers you space profits and the more guaranteed income, you probably won't see your money.
  2. Carefully check which website you are transferring cryptocurrency or money, double-check the url, so as not to get caught on the fake site.
  3. Do not show or send keys and passwords from your wallets, do not show the screen of the wallet, do not send transaction verification codes.
  4. Use proven exchangers, wallets and exchanges. Choose exchanges and wallets that work with fiat money, traditional payment systems and banks. This means that there are financial companies from the real world that have already checked these exchanges, were convinced of the reliability and agreed to work with them.