How to Spot Cryptocurrency & Bitcoin Scams

Yes, we all have heard “Bitcoin is Dying” “Blockchain is complicated” “It’s illegal” and the funny one... “You're a Hacker”! The truth is in the pudding. If you haven't had sufficient experience with virtual currency, questioning its effectiveness is unjustified. We know that the blockchain concepts runs on the backbone of anonymity and cryptography, but many people still fail to understand how it works in clear

Exploiting the lack of awareness and biometric verification, fraudsters manipulate the innocent by establishing scam setups, claiming to be on the blockchain.  Lured in with no Identity Verification in place, customers come up to dish out money or other prominent cryptocurrencies in exchange for false tokens.

Crypto is still fairly alive, however, regulators have tightened their directives or outwardly banned them. For the regions where crypto is still functioning, knowing how to spot scams outright and the ones potentially going down later, is the need of the hour!   




Public - Be Aware of these Scams and Techniques  
  


Imaginative & Nonsensible Returns 

 
When they say “I Don't have a good feeling right about this”, its usually right. We as humans are quick to know when something told to them, is believable or not. Likewise, most scams tend to claim big and offer guaranteed returns. Which any wise person would know, goes against the volatile nature of any crypto. Early buyers..early discounts..early cards..highest returns. Walk Away!

Unclear Business Plan & White Paper


Fake businesses have little to worry about showing documents that actually require years of R&D. Business plans and whitepapers that do not make sense or centrally aimlessly, highlight the limited scope and vision. This signifies an apparent short term strategy that will eventually die off or is clearly fake. Look for a startup with a genuine cause that the company wishes to address and make a difference in. See if there is a whitepaper to even read and if it does exist, makes sense according to their business plan.

Undefined and Ghost Team Members


If there is nothing to hide, where is your team? Have a strong eye for startups that have undefined members on the website, who are also untraceable on the social media. A team reflects a company’s transparency and the entices trust. If there is no team, you know how they're playing. 

Ponzi Schemes

 
A simple yet effective scheme that lures in new investors. Where existing investors receive payouts disguised as returns. Whereas these are actually the investments made by new investors. This cycle continues until a scheme decides to vanish with a substantial amount of funds.

Exorbitant Marketing

 
Yes, it’s all about growing businesses and making money. But outwardly displaying of business costs money. If you see the marketing to be over the top and out of proportions. Take it with a pinch of salt, as it might just be a way to grab your attention, enough to lure you in, convince and then invest. Stay away from such schemes as the intention of these startups might just be different.

There are many ID verification services running globally. However, the best Identity theft protection services are offered by Shufti Pro. The provider is easily scalable for different use cases, especially to cryptos and startups based on the blockchain. With availability in over 225 countries and universal language support that enables Document Verification in 150+ languages, Shufti Pro.