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
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
For more information, consider the following:
https://consumer.ftc.gov/articles/what-know-about-cryptocurrency-and-scams
Employment Scams
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.