A review of some of the most dangerous Bitcoin frauds

Some scams that many Bitcoin users may fall prey to are one of the easiest to avoid. Bitcoin, with its decentralized trading system, is open to many malicious schemes of hackers and scammers. Recent reports indicate that Bitcoin scams are on the rise. In this article we will discuss some common Bitcoin frauds.

Some noteworthy Bitcoin scams that our users at usebitcoin.info should be aware of are:

Bitcoin wallet scam: With the rise in use of Bitcoin, the need for a way to store this digital currency is quickly gaining support. Bitcoin wallet software draws in users by promising a greater degree of security and anonymity in Bitcoin trading. However, scammers in this area betray a user and simply steal their Bitcoins once a minimum threshold is reached in the user’s wallet.

Phishing scam: These scams target Bitcoin users by email. The send the user an email informing him/her that they have won free Bitcoins and need to login to their wallets through a link given in the email. A user who follows the instructions looses control over his wallet.

Bitcoin Exchange scam: These Bitcoin scams try to deceive the user by offering very low cost Bitcoin to currency rates. When a user tries to make the exchange, the money never arrives.

Although being prudent and careful when dealing in Bticoins is the only way to avoid these frauds, the vast majority of Bitcoin users can easily identify and safely avoid these swindles.