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    Cryptocurrency Giveaway Scam: How to Spot and Prevent Them?

    Since the most recent significant bull run throughout late 2017, bitcoin giveaway scams are an issue for individuals active in the ecosystem. We strongly advise all of our visitors to teach themselves about recent cryptocurrency-related frauds and know how to spot them, regardless of whether they’re experienced users or just getting started in the blockchain. This article will discuss a scam that is becoming more and more popular among internet con artists: giveaway fraud.

    Essentially, a fraudster will try to trick a cryptocurrency trader into thinking that a well-known cryptocurrency platform or a famous person is doing a giveaway via the use of social manipulation. The trick is that you’ll need to pay a particular amount of bitcoin toward a giveaway account in wishing to attend the contest, validate your wallet account, and get half of the prize. When a victim transfers bitcoin to the fraudster’s account, it is impossible for anybody may do to retrieve it again, and the fraudster has profited since bitcoin transactions are irrevocable.

    Now since you know what giveaway frauds are really about, we want to be very transparent that even though Coinbase does sometimes run contests, they will never need you to contribute cryptocurrency in order to win cryptocurrency. By understanding cryptocurrencies with Coinbase Learn, you may also make money. Now that everything has been stated, let’s discuss some current developments.

    How Does This Work?

    A scammer will take advantage of or pose as a well-known brand or organization, then declare that they are giving away cryptocurrency. You must first transfer some cryptocurrency to the advertised address in order to enter the coin contest. They often claim to return back twice as much as you pay.

    They want to convince you that you’ll be going to lose out of a significant opportunity in order to pressure you into taking a poor choice. The specific amount of bitcoin that will be given away is often specified, for example, “10,000 Bitcoin offer,” and afterward they utilize fictitious identities to submit replies to create the impression that the prize is being received. Before deciding if the offer is genuine or otherwise, people may rush to pay cryptocurrency to the crooks out of FOMO.

    Trends In Recent Giveaway Scams.

    We’ve given you some instances of the most typical giveaway scam patterns being utilized to attack cryptocurrency traders to assist you to spot the warning indications of a gift fraud.

    Impersonations using Twitter through Coinbase.

    This Twitter account underneath is pretending to just be Coinbase, as well as it replied to a post from Coinbase with such a picture advertising a 5,000 Bitcoin giveaway fraud.

    The picture’s link will take you to a website that requests you donate between 0.1 and 10 BTC towards the scammer’s gift address in order to validate your Bitcoin account. You will receive a return of ten times your cash, as stated on the scammer’s website. All of this seems extremely promising, however, this is a complete hoax, and you’ll receive 0 BTC returned.

    Twitter imitations of famous people.

    In this picture, a seemingly ordinary Twitter profile is responding to a message from Congressman Bernie Sanders. A thank-you message and a screenshot of what looks for being Elon Musk’s post announcing a Tesla gift of Bitcoin or Ethereum are the responses to this. In reality, a fraudster created this picture and altered it to make it look as if Elon Musk sent this tweet.

    When we click the hyperlink in the con artist’s picture, we are sent to a website that looks like a Medium web article. Two “authorized” URLs to “complementary” Bitcoin as well as Ethereum may be found inside the text. Despite the visually stunning and attractive the website is, each of these URLs leads to fraudulent giveaway locations that should not be recognized.

    YouTobe Phony Lives

    Scammers are already utilizing this relatively recent method to continue their bitcoin giveaway schemes. In this case, the con artist will use prior video feeds from CEOs of bitcoin exchanges to build a YouTube clip, which will then be overlaid with information regarding a claimed giveaway. 

    To significantly entice people to enter the competition right now, they may also put up the footage as a streaming broadcast making it looks to be an event that is occurring NOW. Frequently, the “original” giveaway URL or a hyperlink to a page with the giveaway link may be found inside the video explanation. In order to provide the impression that the footage is being seen by thousands of people right now, the fraudster will also push phony spectators to it. Avoid falling for this con since it’s a snare and you won’t get any free Bitcoin!

    Giveaway Email Fraud.

    The effort to advertise such giveaway scams through email is our last instance. The sender of the email makes an effort to persuade the receiver that a prominent has been holding a contest to mark a significant milestone in member signups. As was already noted, authorized platforms periodically run contests but never require you to contribute cryptocurrency in order to win cryptocurrency. Before completing the sign-up process, please verify that the message is indeed coming from such an authorized address.

    How To Protect Yourself?

    Virtually all cryptocurrency giveaways are frauds. They all operate in an identical manner, posing as another person and then requesting cryptocurrency before sending you additional money. The easiest approach to safeguard yourself is always to educate yourself and learn how to spot this kind of cryptocurrency fraud.

    Keep in mind that cryptocurrency transferred to a “freebie” address is lost permanently. Transactions involving cryptocurrency are irreversible, thus you cannot get your cryptocurrency back. Because of this, such frauds are quite successful and often occur.

    Always keep in mind that if anything seems too perfect to be real, it probably is. Consider your actions carefully before giving any cryptocurrency, especially if you require to file an occurrence or believe you have been the sufferer of a swindle of this kind, submit your complaint through the Broker Complaint Alert form and we will investigate your complaint.

    Final Thoughts

    This is the most common crypto scam that is trending now. Those are a kind of social manipulation technique that is often employed on well-known social media sites like Youtube and Twitter to persuade you to pay cryptocurrency to fraudsters. People are seeing this scam every day and scammers are inventing new ways of scamming also.

    Christophergregory

    Christophergregory

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