Top 5 Bitcoin Scams to Avoid and How to Recover Stolen Bitcoin or Scammed Crypto

There have been (and undoubtedly will be) nearly countless bitcoin scams, but these frauds make the list of the top 5 worst bitcoin scams to date. Take note.

1. Malware Scams: 

Malware has long been the hallmark of many online scams. But with cryptocurrency, it poses an increased threat given the nature of the currency in and of itself.

Recently, a tech support site called Bleeping Computer issued a warning about cryptocurrency-targeting malware in hopes of saving customers from sending cryptocoins via transactions, reported Yahoo Finance.

"This type of malware, called CryptoCurrency Clipboard Hijackers, works by monitoring the Windows clipboard for cryptocurrency addresses, and if one is detected, will swap it out with an address that they control," wrote Lawrence Abrahams, computer forensics and creator of Bleeping Computer.

The malware, CryptoCurrency Clipboard Hijackers (which reportedly manages 2.3 million bitcoin addresses) switches addresses used to transfer cryptocoin with ones the malware controls - thus transferring the coins to the scammers instead. And, according to Asia Times, even MacOS malware has been connected to malware scams involving cryptocurrency investors using trusted sites like Slack and Discord chats - coined "OSX.Dummy."

2. Fake Bitcoin Exchanges - BitKRX:

Surely one of the easiest ways to scam investors is to pose as an affiliate branch of a respectable and legitimate organization. Well, that's exactly what scammers in the bitcoin field are doing.

South Korean scam BitKRX presented itself as a place to exchange and trade bitcoin, but was ultimately fraudulent. The fake exchange took on part of the name of the real Korean Exchange (KRX), and scammed people out of their money by posing as a respectable and legitimate cryptocurrency exchange.

BitKRX claimed to be a branch of the KRX, a creation of KOSDAQ, South Korean Futures Exchange, and South Korean Stock Exchange, according to Coin Telegraph.

BitKRX used this faux-affiliation to ensnare people to use their system. The scam was exposed in 2017.

3. Ponzi Scheme - Mining Max: 

"Ponzi bitcoin scam" has got to be the worst combination of words imaginable for financial gurus. And, the reality is just as bad.

Several organizations have scammed people out of millions with Ponzi schemes using bitcoins, including South Korean website MiningMax.

The site, which was not registered with the U.S. Securities and Exchange Commission, promised to provide investors with daily ROI's in exchange for an original investment and commission from getting others to invest (basically, a Ponzi scheme).

Apparently, the site was asking people to invest $3,200 for daily ROI's over two years, and a $200 referral commission for every personally recruited investor, reports claim.

4. Fake Bitcoin Scam - My Big Coin: 

A classic (but no less dubious) scam involving bitcoin and cryptocurrency is simply, well, fake currency. One such arbiter of this faux bitcoin was My Big Coin. Essentially, the site sold fake bitcoin. Plain and simple.

In early 2018, My Big Coin, a cryptocurrency scam that lured investors into sinking an alleged $6 million, was sued by the U.S. Commodity Futures Trading Commission, according to a CFTC case filed in late January.

The CFTC case further details that the suit was due to "commodity fraud and misappropriation related to the ongoing solicitation of customers for a virtual currency known as My Big Coin (MBC)," further charging the scam with "misappropriating over $6 million from customers by, among other things, transferring customer funds into personal bank accounts, and using those funds for personal expenses and the purchase of luxury goods."

5. ICO Scam - Bitcoin Savings and Trust and Centra Tech: 

Still other scammers have used ICO's - initial coin offerings - to dupe users out of their money.

Along with the rise in blockchain-backed companies, fake ICOs became popular as a way to back these new companies. However, given the unregulated nature of bitcoin itself, the door has been wide open for fraud.

Most ICO frauds have taken place through getting investors to invest in or through fake ICO websites using faulty wallets, or by posing as real cryptocurrency-based companies.

Bitcoin Scam FAQs and Answers

Q: Can you get scammed on bitcoin?
A: Yes

Q:How can I report a bitcoin scammer?
A:You can report a bitcoin scammer at the FTC website

Q:How do you recognize a bitcoin scammer?
A: Most times, any offer sounding too good to be true is too good to be true.

Q: How can I get bitcoin back from scammer?
A: Hire a funds recovery expert to get your bitcoin back by sending an email to - [email protected]

Q:How can I recover scammed bitcoin?
A: Send an email to - [email protected]

Q:Where can I find legit bitcoin investment site?
A: You can check with FCA for legit bitcoin investment sites

Q:Can stolen bitcoin be recovered?
A: Yes, stolen bitcoin can be recovered.

Q: How can I retrieve stolen bitcoin?
A: Hire a recovery expert to help you get back stolen bitcoin by sending an email to - [email protected]

If you got scammed on bitcoin, you can get your money back from bitcoin scammer. You can report a bitcoin scammer, and hire a bitcoin recovery expert to get your stolen bitcoin back. Send an email to - [email protected]