Types of Bitcoin Scams you should be aware of.

1. Types of Bitcoin Scams you should be aware of. Bitcoin has been in the market for more than a decade. This decentralized financial instrument has a lot of loopholes that the developers of it are trying to close. Still far from perfect, its loopholes are still being exploited by the scammers. As of now, there are many fund recovery agencies that fight the scammers within the legal framework and recover the lost assets of the victims. The other reason why people fall for Bitcoin scams is due to greed; with Bitcoin trending roughly around USD 40,000, everyone wants a piece of the action. And the other, lack of cryptocurrency awareness. In 2021, there was $14 billion worth of cryptocurrency crime. Nearly twice what it was in 2020. More than 7000 people in America lost to the tune of $80 million due to a crypto scam. Demanding payments through only Crypto. There are many instances where you are demanded to pay through Bitcoin. The catch is that they add your Bitcoin payment to their pool of Bitcoin accounts, thereby capitalizing on the fact that the value of Bitcoin is skyrocketing. Unlike any bank transaction, the Bitcoin transaction lacks the Know-Your-Customer protocol. Thus the person on the other end demanding money from you has no credibility. The other reason is that recovering lost assets is painful. The individual who is the victim of the scam alone due to the financial cost of investigation. He has neither the technology nor the know-how of tracing the lost amount. Thus it is easy for the scammer to con and get away with your money. Fake or Anonymous Identities. An individual's Know-Your-Customer protocol. Therefore, it is difficult to trace who is genuine and fake. identity using Bitcoin is difficult to trace as they lack However, blockchain technology allows some relief making it easier for the law enforcers to trace the stolen wallet. As of now, money laundering on a large scale isn't common, but the tools and compliance framework need to catch up quickly. Attracting by selling Digital Collectibles and Games

2. Another scam the scammers pull is to produce limited editions of minted coins or tokens for some popular games. Many want to buy those limited editions. Thus, there is an increase in demand against the supply, so they are worth more than what they should be in the first place. Schemes involving Crypto Investment. When a new form of a cryptocurrency market enters, it enters at Initial Coin Offering or ICO. The investors are pressured to invest into these coins under the pretext of Once in a Life-Time Opportunity with guaranteed returns. The wallet is compromised. Thus the investors end up pumping too much money into the wallet. When the price is sufficiently high, the people whose brainchild is this ICO sell off, thus profit others' misery. Scams in the Romance Industry. There are tons of dating apps that are plagued by crypto scams. The scam involves long-distance or digital relationships, where one of the parties ends up sending cryptocurrencies or ends up buying expensive gifts. Between October 2020 through March 2021 accounted for about 20% of all the scams. Phishing Scams. This is one of the oldest scams where the scammers send an email or a message demanding crypto tokens to withhold compromising information. They may end up getting the username and the user password, but that is all they can ever get as there is one system key for one wallet. It sometimes becomes problematic to the user when the key is being changed. Conclusion: Even though Bitcoin is rampant globally, some developers work day and night to minimize the loopholes; right now, financial fund recovery agencies are the best options to avail their services. They have the experts, the technical know-how, legal advisors, and many professionals who have vast experience in recovering the lost money of the victims. So till all the problems are removed from Bitcoin, fund recovery agencies are your best hope.