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RockItCoin Frequently Asked Questions

Bitcoin Scams: 7 of the Most Common Cryptocurrency Scams

The safety of our customers is our top priority.  We take additional measures to not only understand trends within scams and illicit activity, but bring them to your attention over the phone, at the machine, and through our social media channels.

It’s always important to remember to use your own wallet (as specified in RockItCoin Terms of Service), and understand that transactions are final and non-reversible.  If somebody else provides you with a wallet to use, they will have complete access and control over the crypto you acquired. A scammer may pressure you to send funds using a wallet they provided, leaving you with an irreversible transaction and lost money.  We highly recommend that customers review the scams below to learn the common signs of a scam for future avoidance and how to report them.

Law Enforcement and Military Personnel

Law enforcement will never demand funds from you, especially not in cryptocurrency and not over the phone or through an app.  But, being scammers, they may paint a compelling situation: the risk of deportation of you or a loved one, a warrant out for your arrest, a loved one injured or arrested. Another compelling scenario may be a scammer posing as military personnel, expressing that they are currently deployed and in need of funds to come back home. Be aware that there are no government entities, including the military, that will request payments from civilians, especially in cryptocurrency. If any of these situations were true, you would not be hearing from a self-proclaimed law enforcement agent demanding cryptocurrency.  Scammers are evolving their tricks to try to catch you off guard, so stay alert to anything of this nature.

For more information, consider the following: https://www.army.mil/socialmedia/scams/

Social Security and Grants

There are no government entities that accept Bitcoin as a form of payment. If you get a call from Social Security claiming your identity has been compromised and a payment is needed to secure your safety, or a warrant is out for your arrest, hang up. Social Security NEVER calls, every communication is done via mail. The same applies for the IRS. Any calls intimidating or pressuring you into making an unwanted purchase of crypto can be part of a scam. 

The same is applicable to grants. Stay alert of messages via social media about a government grant that is currently accepting applications in Bitcoin. There are no fees associated with applying for a government grant, grant applications and information about them are free.

For more information, consider the following: https://www.hhs.gov/grants/grants/avoid-grant-scams


Phishing, Malware, Ransomware, and Blackmail

You’ve heard time and time again not to click questionable links from unsolicited emails, text messages, or even websites; IT professionals have been trying to engrain these kinds of safe computing habits into us all for years. Originally, they warned that the links could infect your computer with a virus or malware of some kind. Now, phishing attempts and viruses could empty your crypto wallets or provide information to help criminals do so.Phishing emails and websites are attempts to get people to provide information (and often passwords) about their accounts with a legitimate company. An email might suggest that your account was compromised, asking you to follow a link to reset your password. The link will bring you to a phishing website that might look identical to the real company website. But anything you type (like your existing password) will go directly to scammers.

Ransomware, on the other hand, completely locks you out of your device until you pay a ransom to scammers. Victims get a call from Microsoft or Apple claiming their computer has been compromised and in order to regain access they must pay a fee in Bitcoin. This is one of the most elaborate scams, involving scammers impersonating law enforcement as well as bank employees. Their end goal is to terrorize victims into paying any fee demanded. The best way to avoid being exposed to ransomware—or any type of malware—is to be a cautious and conscientious computer user. Always scrutinize unsolicited emails and never click links that you’re unsure of. If necessary, navigate to the company website directly (not via links in the email) and reach out to confirm the authenticity of the message. Always use unique, complex passwords and enable 2-factor authentication on any account that offers them.

For more information, consider the following: https://www.fbi.gov/scams-and-safety/common-scams-and-crimes/ransomware

Investment Scams

Investing in Bitcoin, or any other type of crypto, can be rewarding. However, cryptocurrency is highly volatile and its market value is constantly changing, making it a high-risk investment. There is never a guarantee that profit will be realized, and there is no fool-proof third party who can help you outsmart the market.  If someone is claiming they can double or triple your return in Bitcoin, it is an empty promise with deceitful intentions.Usually, these so-called “brokers” will provide a wallet for you to scan at the time of your purchase.  They say this wallet was created for your “investment portfolio,” and are asking for thousands of dollars to be “deposited” in order to make an unrealistic return. Once you’ve made the purchase, they will claim your investment has made a huge profit and in order for you to withdraw the funds, you’ll have to pay a “withdrawal fee” by making another transaction into another wallet they’ve provided. Be advised that if you did not create the wallet (or QR code), then you do not have access to those funds. Even if you made your own wallet but shared the public and private key with the scammers, you do not have complete control of the funds.  In reality, there was no investment account, no insanely high returns, and not even a withdrawal fee; any funds that were put in that wallet were taken by the scammer and nearly impossible to get back.

For more information, consider the following: 


Employment Scams

Be aware of scammers posing as recruiters or hiring managers. There have been scenarios of customers falling victims to these employment scams, where they get hired into a new position and the company sends a check or a wire transfer with the instructions of buying Bitcoin on behalf of this company. They may claim the company needs the Bitcoin to buy training gear, such as a new computer or a phone. These are high-risk transactions that may lead to illicit activity and worse, causing your bank account to overdraft when the check or wire bounces.Another form of employment scams involve active employees being contacted by the company’s owner/manager asking for an emergency transaction to be completed via Bitcoin. They will ask the current employee to withdraw funds from the safe or cashier to make a purchase at a near by Bitcoin ATM. If you ever get contacted by someone claiming to be one of your superiors, contact them directly to verify the request.

Preventative Measures to Avoid Scams:

Here are some important reminders to protect yourself from being a victim of a scam:

  • Always use a wallet that is yours and under your full control at the time of your purchase. Remember: Not your keys, not your coins! 
  • Do your due diligence and research prior to completing a transaction. Once a transaction is completed, there is no way to cancel or reverse it.
  • We do not have custody over the wallets that are being presented at the time of purchase. 

Stay Safe out There

We’ve covered some of the most common Bitcoin scams, but this list is far from exhaustive. Criminals will always find new ways to target victims and collect their coins. When purchasing and investing in crypto, remember to always store it in a wallet that is yours and under your full control. Understanding cryptocurrency and educating yourself on the topic is the best way to prevent yourself from being in a vulnerable scenario.

If you ever have any questions regarding a transaction or need assistance in setting up your own wallet, you can call our Customer Service Team at 888-702-4826.