This article will cover the top 7 most popular Bitcoin Scams on Cash App. Many people have bought their first Bitcoins and other cryptocurrencies in recent years. Since they’re still an undiscovered phenomenon, many were unsure how to use them. As a result, people lost many dollars due to the drop that crypto’s value experienced, but also due to the rise of fraudsters.
Where money is involved, scams always follow. And the same is true with Bitcoin.
In February 2022, the cryptocurrency exchange platform Wormhole suffered a loss of $320 million following an attack from cybercriminals. Alongside this incident, scammers using cryptocurrency have robbed over $1 billion in the last 2021, per the Federal Trade Commission report.
Digital currency can be described as a type of money stored inside a wallet, and its owner can convert money into cash by transferring it to a bank account. A cryptocurrency, like bitcoin, is distinct in comparison to digital currencies. It relies on blockchain to verify transactions and is not controlled by financial institutions, so getting back from theft is much more challenging.
While Bitcoin is a newer trend, thieves are still using traditional methods to get their hands on it.
This article will emphasize the most well-known Cash App Bitcoin scams and how to identify and guard yourself against fraud. These are the top seven well-known Cash App Bitcoin scams we will discuss comprehensively in the forthcoming sections.
- Bitcoin Giveaway Scam
- Investment or Business Opportunity Scams
- Rug pull scams
- Blackmail and Extortion Scams
- Crypto Romance Scams
- Bitcoin Imposters
- Phishing Scams
Seven Popular Cash App Bitcoin Scams
Many different Bitcoin scams are out there. Most of them do not contain Cash App; however, some can. Because it’s easy to purchase crypto via the Cash App and move it to another account, Cash App is frequently employed by scammers to transfer funds.
Moreover , considering the possibility that millions of users already have it on their smartphones, it’s simple to understand why fraudsters employ it for illicit motives. Here are some of the most popular Bitcoin frauds that involve Cash App.
Bitcoin Giveaway Scam
Because of the convenience and accessibility of the application, the amount of Bitcoin purchases made through the Cash App skyrocketed ever since the app was launched. As a result, numerous Cash App Bitcoin scams got also rampant these days.
For scams related to Giveaways, they are not new. Many would consider the lottery scam. However, in recent times the official social media accounts of athletes, celebrities, politicians as well as billionaires are being hacked to promote fraudulent giveaways.
The perpetrators will pretend to be famous people to gain the attention of their followers by convincing them to transfer Bitcoin to their accounts. They will usually offer to double, triple, 10X, or even more of the money sent.
After you have transferred the Bitcoin then the money is gone, and so are the fraudsters. While this is not an actual Cash App fraud, some of the victims have probably utilized the app to purchase Bitcoin and then transfer it to the accounts of the scammers.
Investment or Business Opportunity Scams
The old saying “if something sounds too good to be true, then it probably is” still seems accurate, and you should keep it in mind when you are looking into investing. It is particularly true for cryptos. Numerous profit-seeking investors turn to fraudulent websites that offer guaranteed returns or other setups that require investors to make significant investments to get even greater guarantees of profits.
However, these fake promises often result in financial catastrophe when people attempt to cash out their money and discover that they cannot.
Rug pull scams
A rug pull happens when the project’s members raise funds or cryptocurrency to finance the project, and then all of a sudden, eliminate all the liquidity and vanish. The project is then abandoned, and the investors lose all their invested money.
Blackmail and Extortion Scams
Another social engineering process fraudsters employ is sending blackmail emails. In these emails, scammers claim to have records of adult sites or other porn or illicit websites that were viewed illegally by the user. They also threaten to expose them unless they provide private keys or transfer bitcoins to the fraudster. This is a criminal attempt to extort money and must be reported to an enforcement agency, such as the FBI.
Crypto Romance Scams
The romance scam has been in existence for quite a long time. Not only are they efficient in defrauding people of their money, but they’ve also changed to meet the demands of modern society.
Most of the time the romance scam is a lengthy scam that may last for weeks or even months to dismantle. It typically begins by using Tinder or Instagram and targets both men as well as women.
The majority of people aren’t aware until they reach the point where the money has gone. In the typical Bitcoin romantic scam, the fraudster will charm you into a relationship by promising long walks on the shore, lavish meals, and adventure-filled trips.
After a couple of weeks of getting acquainted with each of their counterparts, the scammer will then give you the truth about their close relative by posing him to be very wealthy and well proficient in Bitcoin.If your curiosity about this subject increases, so does your lust and desire to make money.
It’s all very amazing. You’ve found a soulmate, and are now going to be wealthy!
After you begin investing (in legitimate and authentic crypto apps such as the cash App as well as crypto.com), You’ll be required to transfer your money into a third-party wallet or exchange.
Once you have done the transfer, you will not be able to get the money back and that’s typically the end of the road for your money as well as your affection.The loss of hundreds of thousands or millions of dollars through such scams isn’t a new thing.
Based on the FTC, 14% of the losses documented to fraudulent organizations are now in the field of cryptocurrency.
Imposters are everywhere and nothing new. People used to portray themselves as different, perhaps since the beginning of the age. In the present, this is perhaps even simpler to accomplish.
Scammers can use email and messaging applications to appear as if they are their friends, business associates, or an official from the government, and so on.
The theory behind the above is they may have been aware of the previous contact with that person and are aware of how to portray them as they are.
They’ll ask you to promptly send them money to cover the purpose of a transaction or in case of an emergency. Because you likely don’t have any reason to suspect scammers’ motives, you’ll agree and transfer cash or Bitcoin using the Cash App or some other method.
As per the Federal Trade Commission, people claimed to have lost $294 million in cryptocurrency to scammers and fraudsters in 2021. To put it in perspective, the victims “only” lost around $44 million in credit card charges to them.
Phishing scams attempt to trick users into clicking on an offer to obtain sensitive data like your bank or Cash App account login, telephone number, social security Number, credit card details, and anything else you’re willing to give them on an online application.
The form will appear as if it’s an authentic Cash App website. The phishing attempts originate from phone calls, robocalls, texts, emails, DMs, etc.
Sometimes all you have is to click an infected link, which will be the source of malware installed on your device without having to fill out an application with your personal data
How to Spot a Bitcoin Scam?
Bitcoin frauds are simple to identify if you are aware of what you’re seeking. Genuine cryptocurrency comes with readily accessible public disclosures, as well as specific information on the blockchain and the tokens that go with it. The below points will help you out identifying a scam.
- They promise to pay you money.
- They guarantee you’ll earn an income.
- There’s an endorsement from a famous person or testimonials.
- Scammers claim huge sums with a guaranteed return.
- Scammers may offer cash for free or even cryptocurrency.
- They make bold claims but do not provide any detail or explanations
There is no way to guarantee a certain rate of return or guarantee that you can get double, triple, and even 10x the value of your investment. Professionals who are savvy be aware of how their investments are performed, as well as where their money is going. However, an experienced investment advisor will be eager to explain the process to you.
Before investing, look up the names of the company, and the crypto’s name, and it is crucial to know words like “review,” “fraud”, “scam,” or “complaint.”
Always look up to what others are saying about it. Do not take the claims of scammers on their own and educate yourself on other frauds before making a decision.
Also, Get to Know: How To Enable Cash App Direct Deposit?
How Do I Avoid Bitcoin Scams?
There are many steps you should adhere to avoid being fraudulently scammed. If you see any indicators, you should not click on any link, dial a number, contact them in whatever way or give the money. Additionally:
- Don’t give away your private crypto keys. The keys you use to control your crypto and access your wallet, and no one requires them for the course of a legitimate cryptocurrency transaction.
- Do not believe in promises to earn a lot of money.
- Please do not listen to investment advisors who call you to tell you they can increase your funds quickly.
- Don’t pay attention to celebrities. A celebrity won’t contact you about purchasing cryptocurrency.
- Meet your romantic partners in person if you’re on an online dating site or application before giving them money.
- Never pay attention to text messages and emails from famous or brand new businesses claiming that your account is frozen or they’re worried about it.
- If you get a text, email, or social media post from a law enforcement agency or utility company, stating that your assets or accounts are blocked and you’ll be required to transfer cryptocurrency or funds to the agency, call them and do not respond to the message.
- Don’t bother with job advertisements for a cash-to-crypto converter and crypto mining.
- Never fall for claims that they have explicit photos about you, which they’ll publish if you do not send cryptocurrency and then report it.
- Never accept “free” money or crypto.
Before we finish this article on the top 7 Bitcoin Scams on Cash App, we invite our readers to check out our other post published lately on “How To Login Cash App On Another Device?”
This article explains the top 7 most popular Cash App Bitcoin Scams. At the same time, we have also mentioned how to spot these scams on your own, including the pointers to protect yourself from these scams.
In case you know the most common methods scammers use to take your personal information and money. In that case, you will be able to recognize the early signs of a scam involving Bitcoins on CashApp and stop it from occurring to you.
Now we are under the impression that the Cash App users shall indeed like this informative post. However, you can contact us anytime for more help if you still have any queries.
FREQUENTLY ASKED QUESTIONS
What Are Common Bitcoin Scams on Cash App?
The most common and frequent frauds are Crypto romance, Bitcoin phishing, Rug Pulls, and Investment or Business opportunities schemes.
How Do I Avoid Getting Scammed With Bitcoin?
A good way to prevent yourself from being scammed is to stay alert to scammers’ methods and be cautious. Be aware of the warning signs for fraud and keep your wallet keys safe out of reach from scammers.
Can I Get Scammed If Someone Sends Me Bitcoin?
It is not advisable to accept transactions you aren’t aware of. Remember that the only way to take your cryptocurrency is if you hand it over to them in a planned fraud, and you give them keys, or they steal your wallet and take your keys.