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What are Most Common Cryptocurrency Scams and How to Report a Bitcoin Scammer

iCrowdNewswire   Oct 14, 202012:00 AM ET

Entering the world of cryptocurrency is not a simple game. Due to the essentials of crypto facts and the presence of scammers, traders and investors need to be extra vigilant for every step they take. It means you need to familiarize yourself with some of the most common crypto scams to help protect yourself and your money. 

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Bitcoin blackmail attempts involve some strangers threatening you to exchange the bitcoin in terms of extortion. They usually use email wherein the sender writes a message claiming that they have hacked your computer and are operating it through Remote Desktop Protocol or RDP. They also tell you that they have installed a key logger and used your webcam to record doing something that you might not want others to know about it.

When it comes to bitcoin blackmail, the sender gives you two choices. Either you send them bitcoin to overpower the material, or they will show your content to your email contacts and spread it over your social media accounts. Fraudsters use your stolen email lists and other users’ information to run this method across lots of people.

Fake Exchanges

As bitcoin keeps growing in popularity, more and more people are looking to acquire it. Unfortunately, wicked people know this fact and are taking advantage of it by setting up fake cryptocurrency exchanges. These scam platforms offer highly competitive market prices to trick users, making them think that they are getting quick and easy access to some digital money more affordably than usual. Now since you know these are fake websites, make sure to use only reputable and trusted bitcoin exchanges when trading the digital currency.

Free Giveaways 

Scammers benefit from the viral nature of how quickly information spreads across the world wide web. They offer free giveaways of cryptocurrency, such as bitcoin, in the exchange of transferring a small amount to register with them or by providing them with some personal information. If you see this on any website or a social media page, it is wise to immediately report the content as a scam to help others prevent the fraud. 


Creating fake social media accounts and imitate people is an easy thing to do. At times, these scammers lie in wait until the user they are targeting to impersonate published content. The scammer then replies to your message as a call to action in terms of a free giveaway. They do it from a social media account that mimics almost the same as the original author or publisher. Most of the time, it seems like the original author is offering you a free giveaway. It is critical not to participate in any free giveaway scheme. Make sure to double-check the authenticity of an odd request that comes from someone in your network. 


Bitcoin malware blocks your access to a gadget unless you pay a bitcoin ransom, giving you an option of either paying it partially or completely. If this is the case, do not panic or step forward for sending the money. Instead, seek the advice of a trusted computer professional to get the necessary assistance. You can do this by taking care of the programs installed on your devices, especially those requesting administrator access. It is vital to double-check that the downloaded application is not fake or does not impersonate a legitimate one that you have already used in the past.

Scam Coins 

Investing in altcoins needs you to play vigilantly because these coins may have many scam coins that entice users to invest in presale discounts or private sales. Scam coins usually feature a flashy website and have a large community to create an extraordinary impact on users who discover it. Early holders benefit from this situation and increase the price to dump and exit for a profit. 

Some scam coins do not have large communities and may do airdrops to offer free coins in exchange for joining their societies. It will enable scam coins to initiate inflated traction metrics to make you feel like they are missing out so that you can decide whether or not you should invest in it. Sometimes, scam coins may also use the term of bitcoin as a trick or to mislead people so that they can think to make a legitimate association on their website. 

Phishing Emails

Be careful of emails that claim to be from services you can use beseeching you for action like setting your password. Generally, it is hard to spot the difference between a fake email that is trying to entice you to compromise your account and a legitimate email from a brand or service you are already using. If you are not sure, consider triple-checking the authenticity of the email by forwarding it to the business to their email address that you can obtain from their website. You can also call them on their given number or contacting them through their official social media accounts. 

How to Report a Bitcoin Scammer 

While you may not be able to recover your money after falling for a scam, it is essential to report a bitcoin scammer. Tagging every scammer will help the relevant authorities detect the culprit and help others avoid future scams. Unfortunately, there is not crypto police established yet, and the community will need to step you to help others and stop crimes. 

You can report a bitcoin scam to the FBI, but they usually do not do anything unless it is a million-dollar fraud. helps users like you understand the ways you can protect yourself against scams and learn how to report a bitcoin scammer. Several other platforms allow you to tag a crypto scam and enable you to identify the tainted transaction and act accordingly. 

Most fraudsters are based abroad. For that reason, the ACCC may give your report to different government organizations overseas to hand it over to the law enforcement and share intelligence about fraudulent activities. These authorities may contact you to report to inquire about additional information.

Reporting to relevant authorities will also help make the crypto community safer. Your act will alert fellow traders and investors before they become the next victims. Also, it will allow international law enforcement to capture bitcoin scammers.  

Also Read: US Citizens Are Warned of Ransomware threats by OFAC & Usage of Crypto as Ransom Payments


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