Where there’s money, there’s a scam. That’s what you’ll notice if you follow any domain where you’ll find scammers. Be it get rich quick schemes or fleecing users with pyramid schemes, people have been scammed for ages. So, it’s not a surprise to see that scammers have entered the cryptocurrency space too. We’ve already covered such frauds running on Twitter or how to keep yourself safe from crypto scams, but right now, Bitcoin scams on Instagram are on the rise. In this piece today, let’s examine how such scams work and how one can avoid them.
Why is Bitcoin used for scams?
If you’re a TotalKrypto reader, then you’d know the answer. The principles of Bitcoin and other cryptocurrencies work in favour of scammers. Be it the fact that it’s decentralized, which means there’s no central authority checking the flow of money, or that it’s anonymous, which means scammers can easily take out the money in comparison to using fiat. But perhaps the biggest factor is that Bitcoin transactions are irreversible. Once a user has been conned, s/he won’t be able to get the money back, unlike the traditional banking system.
Types of scam on Instagram
1) Impersonation scams
This is the most common type of scam and something that has been seen on other social media platforms. As the name suggests, scammers impersonate big celebrities and make tall claims to lure users. They make claims like deposit digital currency on a certain place, and it’ll get doubled, or deposit the crypto to enter a lucky draw.
2) Money flipping
There are Insta accounts that post about “get rich quick schemes”. They share about how one can get a big payout by providing access to their funds. It looks so genuine and attractive that users get convinced that it’s genuine. Moreover, scammers send direct messages to people who follow banks or other financial accounts on Insta to specifically target those who might be interested in something like this.
3) Pyramid schemes
Now, this is the type of scam that has been there since time immemorial. So, the pyramid schemes on Insta are similar to the other scams we all have seen. Simply put, scammers convince users to become investors and highlight how their profits will continue to increase depending upon the people they can bring to the network. Also known as multi-level marketing, such a scheme does make some money for early investors, but it all comes crashing down as soon as the original scammers walk away.
How to avoid Bitcoin scams on Insta
There’s a simple answer — applying common sense. There’s nothing called free money, and if you follow this principle, you’d be able to spot all the scams on Instagram or other platforms. Of course, there are basic checks such as seeing the verified profile for the celebrity account or that you shouldn’t send money to any account that’s promising insane returns. And never respond to DMs about investments. You should also report such accounts so that other people don’t get scammed either.