While cryptocurrency comes with numerous benefits like peer-to-peer transactions, better transparency, and so on, it has a dark side also. Cryptocurrency scam is one of the most common malware on the digital sphere to trick social media users and cash in their money.
In a recent crypto scam, a man used a fake account of Elon Musk to trap people for participating in a giveaway contest. As a result, a Twitter user lost £400,000. Well, such cases occur regularly and give opportunities to scammers to cash in people’s money. In this post, we will walk through Bitcoin scams on social media because they are more common.
If you are considering crypto social media app development, you must get yourself familiar with Bitcoin scams. But before delving into Bitcoin scams, let’s draw some light on why Bitcoin is more susceptible to scams.
- Why are Bitcoin owners most targeted on social media?
Since its introduction, Bitcoin value has drawn the attention of several investors and business owners. Of course, it keeps varying regularly, but Bitcoin still holds the top position among other cryptocurrencies. But the rise of the Bitcoin market soon caught the attention of scammers looking to make money using legitimate ways. Are you wondering there are many cryptocurrencies but why Bitcoin? Do not worry! We are here to answer all your queries.
Firstly, Bitcoin is verified via encrypted transactions and recorded eternally on a ledger, making it easy to access to all. For this reason, anyone who holds a Bitcoin wallet can carry out the theft of users’ money and sensitive data on social media. You know the irony is the benefits of Bitcoin, like its irreversible nature, decentralization, and anonymity, make it prone to fraud on social media. Let us understand them in detail.
- Irreversible nature – The irreversible nature of Bitcoin implies that any transactions or processes that occurred in its ecosystem can be changed and removed. Do you know even the first-ever transaction has been recorded as a permanent and incorruptible ledger? Thus, it is impossible to make any alteration in the records. For this reason, it becomes difficult to recover losses once the transaction has occurred. As a result, there is a surge in Bitcoin scams on social media networks.
- Decentralization – Unlike fiat currency, there is no intermediary, like banks and government, to control Bitcoin transactions. Thus, due to the absence of a central authority in the Bitcoin environment, tracking and recovering losses are impossible. So, it means once you are deceived, there is a way to go back to check records.
- Anonymity – Bitcoin allows online users to hold a wallet to start trading without any personal information identification proof. Although this feature can help people to buy and sell Bitcoin without disclosing personal details, it has led several scammers to take advantage and indulge in legitimate activities. For example, most drug dealers and other illegal merchandise providers turn to Bitcoin for making payments.
Based on the above discussion, it is clear why Bitcoin is the most preferred cryptocurrency for any illegal activities on social media sites. Since you are investing your hard-earned money in decentralized social media app development, it is essential to know Bitcoin scam categories to stay protected.
- Bitcoin wallets with hidden malware downloads – With years of experience in the industry, we have observed that scammers attract users to click the hidden malware downloads through URLs on social media. Therefore, you need to be cautious whenever you encounter URLs posted on social media, which are shortened and not secured using an HTTPS connection.
- Flipping scams – When it comes to Bitcoin-flipping scams, they lure users via an instant exchange of Bitcoins for money. However, it comes along with initial payment or guaranteed double on your initial fee immediately. Usually, as soon as users pay the fee in Bitcoins, the fraudsters steal them right away.
- Phishing impersonators – Another common Bitcoin scam on social media is an impersonating tactic to trap users. They do this by winning the credibility and trust of victims. Usually, phishing websites come with a search service, which attracts users to use their private Bitcoin key for checking the existence of the database. Please keep in mind once you enter the private key, the scammer will phish it. As a result, he/she can access your Bitcoin wallet and spend your money directly.
These are a few of the many ways scammers can exploit Bitcoin from social media users. So, whether you are an investor or business owner, make sure you are well-versed with the tactics fraudsters can use to cash in your Bitcoins. Thus, it is advisable to hire an experienced decentralized social network developer.
If you are looking for reliable crypto social media app development services, get in touch with Steem Experts. We house a team of experts with years of experience and in-depth knowledge in developing customized decentralized social media apps.