This article serves as a warning and guide to common scams and fraud schemes that are often used in connection with the purchase, sale, and transfer of Bitcoin. The following information and examples are intended to help you recognize and avoid scams early on.

Please note that there are many other types of fraud and preventive measures besides those listed here. However, the guidance provided here should help you identify most of the current scams and better protect yourself against them.

A scam is an attempt by a person or organization to trick a potential victim into handing over money, sensitive personal data, Bitcoin, or other assets.

In most cases, scammers make false promises or use false information that appears credible at first glance to convince their victims. However, they often resort to more extreme measures, such as blackmail and threats of emotional or physical violence.

Scams mostly occur online, but they can also be planned and carried out partially or entirely offline.

Source: mimikama.org

There are now countless scams, and unfortunately new types are added every day. We have listed six of the most common scams here and provide a few brief examples of each:

An online romance scam or love scam is a type of scam in which the scammer enters into a romantic online relationship with the potential victim in order to gain their trust and then obtain money, data, or other assets. Such scammers usually create a fake profile on a dating website or social media platform and begin to build a relationship with their victim. As the romance progresses, gifts are sent, their love is declared, and at some point, money is requested.

Once the scammer has gained the victim's trust, they ask for more money, often claiming that it is urgently needed for medical bills, travel expenses, or other family emergencies. Since sensitive data is often exchanged in a relationship (even if it is online), some scammers threaten to publish or sell the victim's personal data if their demands are not met.

Victims of online romance scams can suffer financial loss, emotional stress, and even identity theft.

Phishing is a type of online fraud in which criminals attempt to steal personal information such as passwords, credit card numbers, and bank details by sending emails or text messages that appear to come from a legitimate source. These messages often contain links to websites or file attachments that contain malicious software designed to steal data.

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A tech support scam is a type of fraud in which scammers pose as legitimate representatives of a company's technical support and attempt to gain access to a victim's computer or personal data.

The scammers contact the victim by phone, email, or via a pop-up window on their computer. In many cases, the scammers ask the victim to install desktop sharing software such as AnyDesk or TeamViewer in order to steal data or passwords from the computer.

An online investment scam is a scam in which investors are lured into making risky investments with the promise of high returns.

The scammers typically use false or misleading information about trading success or the trading company to convince investors to invest in a non-existent or worthless asset. In some cases, they advertise investing in real assets, but then the organization simply does not engage in any activity.

These scammers often use psychological pressure to push the potential victim into making a quick decision. Once a transfer has been made to a bank or customer account, the victim suddenly finds that they can no longer log into their customer account, or the website no longer exists.

In this type of scam, the scammers try to convince a victim to send money to recover large sums of money or other assets. These are often supposed inheritances, lottery winnings, or cryptocurrencies lost in trading.

The scammers usually ask the potential victim to pay some kind of fee to access the money or assets, often in the form of a bank transfer or a prepaid debit card.

Sometimes personal information such as bank account numbers or social security numbers are requested under the pretext that an identity check must be carried out. Once the victim has sent the money, the scammer usually disappears within a very short time and the victim never receives the promised money or assets.

In an identity theft scam, criminals attempt to steal personal information such as social security numbers, credit card numbers, and bank account information. Identity theft often follows a successful tech support scam or phishing scam, as the scammers may already have access to this data in the worst case.

The scammers then use this information to either open new bank accounts, make purchases, or even take out loans in the victim's name.

Criminals can use the stolen information to file fraudulent tax returns or apply for government benefits. In some cases, scammers even use the stolen information to commit other crimes such as identity fraud or money laundering.

Victims of identity theft can suffer financial losses, credit damage, and even criminal charges.

If you feel uncertain or have already suffered a loss, please contact the police immediately and provide them with all information about the online fraudsters so that they can take appropriate action. Coinfinity works closely with law enforcement agencies in such cases and supports them in investigating these crimes.

Remember: if in doubt, you can always contact us—we are here for you.