Scam Watch
As the interest in Bitcoin grows in Australia and around the world, it's important to stay informed about potential scams and risks. This simple guide provides examples and suggestions to help you identify and avoid various fraudulent schemes, ensuring a secure experience in the world of Bitcoin.
Blackmail Scams
Watch out for blackmail scams where strangers demand bitcoin for extortion. A common trick is an email claiming the sender has hacked your computer and is controlling it remotely. They might say they've recorded you through your webcam doing something private and will release the footage unless you pay them in bitcoin. Remember, these scammers often use stolen email lists to target many people, so stay alert.
Dodgy Bitcoin Exchanges
As bitcoin's popularity soars, be cautious of fake bitcoin exchanges. These phoney exchanges might offer tempting market prices to lure you into buying non-existent bitcoin. Always trade on well-known, reputable exchanges.
Bogus Free Giveaways
Scammers love to exploit the internet's reach with fake free giveaways of bitcoin or other digital currencies, asking for a small deposit or personal details in return. If you spot these on websites or social networks, report them as fraud straight away.
Impersonation Tricks
It's all too easy for scammers to create fake social media accounts and impersonate someone you know or a public figure. They often respond to posts with misleading messages or offers, like free giveaways, to trick you. Always double-check through multiple communication methods before trusting such claims.
Malware Threats
Hackers can get creative in stealing bitcoin. Double-check the address when you send bitcoin, as some malware can change the address to the hacker’s. Once a bitcoin transaction is confirmed, it's usually irreversible. Be cautious about which programs you give admin access to and consider using a reliable virus scanner.
Risks of In-Person Exchanges
When buying or selling bitcoin in person, you might be asked to meet face-to-face. This can be dangerous and might result in robbery or worse, especially if the counterparty is unknown. Some might even try to pass off counterfeit cash. Consider using a peer-to-peer platform with an escrow service instead.
Money Transfer Cons
Ignore emails from strangers asking for help in transferring large sums of money, promising you a cut. It's a classic scam.
Phishing Email Alerts
Be wary of emails that seem to be from services you use, asking you to act, like resetting passwords or clicking suspicious links. If unsure, verify the email's authenticity by contacting the company directly through official channels.
Phishing Website Warnings
Similar to phishing emails, these websites mimic legitimate ones to steal your login details or get you to install malware. Always check the website’s authenticity before logging in or downloading anything.
Ponzi and Pyramid Schemes
Avoid any schemes promising guaranteed returns in exchange for an upfront investment. These are often Ponzi schemes where new investors' money pays off earlier investors, eventually leading to people losing money. Pyramid schemes work similarly, offering returns based on recruiting others, but rarely result in any profit.
Prize Giveaway Scams
Be cautious of prize giveaways asking for your personal information. This data can be used to impersonate you and access your accounts.
Pump and Dump Schemes
Don't trust claims about knowing future bitcoin prices. In pump and dump schemes, scammers inflate the price to sell their holdings at a profit, leaving others with worthless assets.
Ransomware Dangers
Ransomware locks access to your device, demanding a ransom in bitcoin. It's better to consult a trusted computer professional than to pay the ransom. Be careful about installing software, especially those requesting administrator access.
Scam Coins
Be careful with alternative coins (altcoins). Some may be scam coins, luring investors with private sales or pre-sale discounts. They often use flashy websites or large, fake communities to create a fear of missing out. Don’t fall for coins using 'Bitcoin' in their name to mislead you into thinking they're legitimate.
Resources
Australians have access to several reputable online resources for discovering and reporting scams. These include:
- Scamwatch: Run by the Australian Competition and Consumer Commission (ACCC), Scamwatch provides information to consumers and small businesses about how to recognise, avoid, and report scams.
- Australian Cyber Security Centre (ACSC): The ACSC offers advice and information about how to protect yourself online and how to report a cyber security incident, which includes cyber scams.
- Australian Securities and Investments Commission (ASIC): ASIC's MoneySmart website offers guidance on how to spot and avoid investment scams, including those related to cryptocurrencies.
- Australian Federal Police (AFP): While not for reporting general scams, if you've been a victim of a complex or high-value scam, you can report it to the AFP.
- Office of the eSafety Commissioner: Provides information and resources on online safety, including how to protect yourself from and report online scams and fraud.
- State or Territory Consumer Protection Agencies: Each Australian state and territory has its own consumer protection agency (like NSW Fair Trading and Consumer Affairs Victoria) where you can report scams and get information.
- IDCARE: If your personal information has been compromised in a scam, IDCARE offers support in identity and cyber security protection.
These resources can assist Australians stay informed about scams and take action when necessary.
Always stay vigilant and do your due diligence before engaging in any bitcoin-related activities. Remember, if it sounds too good to be true, it probably is. Stay safe out there!