many people bought their first bitcoins and other cryptocurrencies in the last few years. because they are still a novelty, many people didn’t really know what they were doing.
That caused many to lose a lot of money due to the falling value of cryptocurrencies, but also due to the influx of scammers.
Reading: Bitcoin cash app scams
In this article, we highlight the most popular bitcoin cash app scams, as well as how to recognize and protect yourself against scams. Here are the five most popular bitcoin cash app scams:
- bitcoin giveaway scam
- bitcoin investment scams
- crypto scams romance
- bitcoin imposters
- phishing scams
top 5 cash app bitcoin scams
There are many different bitcoin scams out there. most of them don’t include the cash app in particular, but they can too. Because it is so easy to buy the crypto on cash app as well as transfer it, scammers often use it to make transfers.
Add to that the fact that millions of people already have it installed on their phones, and it’s easy to see why scammers can often use it for their nefarious purposes. These are just some of the most widespread bitcoin scams involving cash apps.
1. bitcoin giveaway scam
Gift scams are nothing new. some would call the lottery a scam. however, today, the official social media accounts of celebrities, athletes, politicians, and even billionaires are being hacked to distribute bogus giveaways.
perpetrators will pose as famous people to take advantage of their followers by trying to get them to send bitcoins to their wallets. they usually offer to double, triple or even 10 times the money sent.
Once you send them the bitcoin, the money is gone and so are the scammers. Although not a cash app scam per se, some of the victims must have used the app to purchase the bitcoin and transfer it to the scammers’ wallets.
For the sheer simplicity and availability of the app, the number of bitcoin purchases in the cash app has skyrocketed since the service was introduced.
Also read: 12 apps that can make you money (how to increase your income)
2. bitcoin investment scams
cash app transactions are final. meaning that when you pay someone or send them your bitcoin, you will most likely never get it back. You may not be aware of the fact, but scammers certainly are.
Therefore, there are a lot of bitcoin investment scams involving cash apps where you get a “once in a lifetime opportunity” to invest money and make astronomical profits.
all you need to do is buy some bitcoin in the cash app and transfer it to the person selling you to invest with them.
Some of these types of investment scams are not only very elaborate and long-term, but can lead you to make multiple transfers as soon as they give you a return on your first investment.
for example, you can start with an investment of only $50. After a couple of hours, the scammers will give you $80 back for an easy $30 profit. That will wet your beak and make you greedy.
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Your next transfer could be a couple of thousand dollars, and at that point, you’re hooked. they will try to get you to “invest” even more or you won’t get your money back at all.
And so the vicious circle begins.
3. crypto romance scams
Romance scams have been around for a long time. Not only are they very successful at scamming people out of their money, but they have adapted to modern times.
In most cases, a romance scam is a long play that can take weeks or even months to resolve. it often starts on tinder or instagram, for example, and targets both men and women.
People don’t get suspicious until the end, when the money is gone. In a typical bitcoin romance scam, the scammer will sweet-talk your way into your heart by promising long walks on the beach, fancy dinners, and adventurous trips together.
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After a few weeks of knowing each other, the scammer will tell you a secret: his uncle is a goldman sachs expert and he is a bitcoin expert.
As your interest in this subject grows, so does your greed and craving for easy money. it’s all so exciting. You’ve met a soulmate and now you’re both going to be rich!
However, after you start investing (on official and real crypto apps like cash app or crypto.com), you will be asked to transfer the investment to a third-party exchange or wallet.
from there, you can no longer get the money back and that is usually the end of the line for your money and your love.
Losing hundreds of thousands or even millions of dollars to these types of scams is not uncommon.
4. bitcoin imposters
According to the ftc, 14% of documented losses from imposters of all kinds today are in cryptocurrencies.
imposters are at it again, nothing new. people were represented as someone else, probably since the beginning of time. In today’s world, that can arguably be even easier to do.
Scammers will use emails or messaging apps to pretend they are your friends, business associates, associates, government officials, etc.
The prelude to this is that they were probably aware of your previous communication with said person and knew how to impersonate them.
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They will ask you to send them money quickly for a transaction or an emergency. because you probably have no reason to suspect them, you will comply and send money or bitcoins through the cash app or some other way.
Also read: 4 ways to get free money in the cash app (that still work)
5. phishing scams
According to the Federal Trade Commission, people reported losing $294 million in cryptocurrency to scammers and fraudsters in 2021. To put that into perspective, they “only” lost about $44 million in credit card payments.
Phishing scams try to trick you into clicking on a link to obtain some of your sensitive information, such as your bank account or cash app login, phone number, social security number , credit card information, or anything else you’re willing to provide. in an online form.
The form itself will resemble the official website of a cash app. Phishing attempts come from phone calls, robocalls, emails, text messages, dms, etc.
Sometimes all you have to do is click or tap on a compromised link and that will install malware on your device, without the need to fill out a form with your details.
how to recognize a scam
It’s relatively easy to spot the companies and people trying to scam you:
- insured
- scammers promise free cash or cryptocurrency
- make important claims without valid details or explanations
Nobody can guarantee a fixed return or double, triple or even 10 times your money.
Savvy entrepreneurs like to know how their investment will perform and where their funds are going. on the other hand, a good investment advisor will want to explain it to you.
Before investing, search online for the name of the company, the name of the cryptocurrency, plus, and this is important, words like “review”, “fraud”, “scam”, or “complaint”.
always take a look at what others are saying. never take the scammer’s claims at face value and educate yourself on other common investment scams before you pull the trigger.
how to report cryptocurrency scams
You can easily report fraud, scams and other questionable activity related to bitcoins and other cryptocurrencies to:
- ftc at reportfraud.ftc.gov
- united states securities and exchange commission (sec) at sec.gov/tcr
- commodity futures trading commission (cftc) at cftc.gov/complaint
- cryptocurrency exchange you used to transfer the money
how to withdraw bitcoins
At any time, you can easily withdraw your bitcoin from the cash app to a third-party bitcoin or crypto wallet. to do this:
- switch to btc by tapping “usd” on the cash app home screen
- choose bitcoin
- type the amount of bitcoin you want to mine (you can change between btc or usd)
- tap “send” to enter your bitcoin wallet address manually or tap the top left corner of the screen to find the qr code scanner
- tap the wallet address to confirm
- press “next”
- choose withdrawal speed
- press “confirm & send” to start withdrawal
People withdrawing bitcoin for the first time may need to enter more personal information before making a withdrawal.
To complete a withdrawal using the standard cash app withdrawal speed, you must withdraw at least 0.001 bitcoin. to withdraw using the fast and priority withdrawal methods, you must choose at least 0.00005 bitcoin.
conclusion
We show you some of the most popular bitcoin cash app scams today. Now that you know what to look for, try to stay safe while using digital banks like cash app.
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