Multiple Faces Detected
November 28th, 2022
Any time something new makes people rich, there are two parties that want a piece of the pie: new buyers and scammers. And since Bitcoin took off like a rocket heading to the financial stratosphere, scammers and buyers alike are clamoring to get in on the next heavy coin set to take its place at Bitcoins side.
How can scammers trap you? By getting you to transfer your crypto. Read on to learn how to spot these scams and avoid being scammed out of your crypto.
If you have sent crypto online and you think you may have been scammed, run a reverse search on the person to find their true identity. Go to socialcatfish.com or use the search bar below to find out your crypto scammer’s identity today.
The 3 Most Common Coinbase Scams
$14 billion worth of crypto was stolen in 2021. If a member of Coinbases, you need to be familiar with the most common types of scams in the industry.
1. Fake Crypto Exchange
At socialcatifh.com we help people who have been the victims of scams. We’ve seen victims lose tens of thousands of dollars by sending money to fake digital wallets through fake crypto websites. This type of scam is one of the most common and least talked about crypto scams out there.
2. Phishing scam
In a phishing scam, Scammers will send you an email claiming to be from Coinbase, claiming your account is locked. They will then send you to a fake website and prompt you to enter your account information. Once you do, the scammers use your information to hack your real account. This is. known as a phishing scam.
3. Text Scam
Another Coinbase scam that is very popular with conmen is the text scam, where they send you a text telling you your account has been accessed to approve a withdrawal. Again, it will ask you to change your password or user data and after that, they own you. Again, check with Coinbase if any issue occurs with your account. Changing your password often is also a good idea.
4. Bitcoin-Mining Scams
Bitcoin mining scams are another scam to be on the lookout for. Mining scams prey on people’s desire for huge returns. In these scams, the scammer will promise to give you a 50% return on your investment every month. During the first month of this scam, you send the scammer money, then they send you your money back plus a little bit extra. Because you got a return on your money, the next month, you’re likely to invest more. The scammer will keep sending you your money back until you invest a large amount. Then they take it all and run.
What is Coinbase?
Cryptocurrency, unlike traditional money, only exists electronically. This means it is intangible, therefore you don’t have to store it on your person or in a bank. However, there are online banks where you can not only store your crypto but grow it with interest, just like a traditional bank. The big difference, crypto cannot be tracked or traced. That is why only certain platforms allow crypto trading.
Coinbase is one such crypto trading platform. With Coinbase, any cryptocurrency can be bought and sold, including fractions of coins. For instance, you can buy bitcoin, but depending on your purchase, the amount can be a ten-thousandth of a percent. Now that bitcoin is worth tens of thousands of dollars many people can only buy the coin in small chunks. So, if you buy $20 worth, you are looking at owning .00003 of a coin.
There are over a hundred types of crypto to date. There are even sub-sections of crypto families, like Ethereum, which has its regular version and a light version, or the meme-based crypto, Dogecoin, which, thanks to Elon Musk, has about ten different iterations. And these coins shift in price very rapidly. If you don’t watch your Coinbase account carefully, you can lose a lot of money very quickly.
Scams in Crypto
Bitcoin scams can be devastating. this is because cryptocurrency is not backed by the government of any country. Another important fact to keep in mind is Bitcoin is not a company. So if you have been the victim of a scam, there are no customer service reps to call.
Because crypto is unbacked, it doesn’t have the same protection as legal tender. And this is why crypto is a scammer’s currency of choice. Bitcoin being an Unbacked and uninsured currency that doesn’t exist in the real world means that there is very little to no evidence when a crime involving crypto has occurred.
Final Thoughts
Coinbase does have its benefits, but the deficits can have devastating consequences if you are too eager to chase the next Bitcoin as an easy way to get rich. Never let an over-eager sense of greed ruin your life. Do the research, know the crypto codes, and trade pragmatically. Your greatest weapon against scammers is common sense.
