Report: Bitcoin Social Media Scams Are On the Rise

A new report by a cybersecurity platform provider issued today offered new data on social media scams.

Mar 23, 2017 at 6:30 p.m. UTC
Updated Sep 11, 2021 at 1:11 p.m. UTC

The rise in popularity and price of bitcoin has led to greater instances of scams perpetrated through social media, according to a new report.

, the report categorizes these new types of scams, collecting data from the point at which bitcoin became worth more than 1 ounce of gold in early March. In total, the company said it identified 3,618 bitcoin scam URLs, which were shared on average 24 times per day during the observation period.

The paper goes on to claim that curated bitcoin scam URLs had been shared over 126 million times in total. Excluding two major outliers, each identified URL was shared on average of 5,367 times since its creation.

Of the scams identified, the first involves sending malicious URLs, the second centered on the phishing bitcoin private keys, while a third scheme, known as the 'bitcoin flipping scheme', saw investors be sent promises of irregularly high returns on their bitcoin after they paid an initial upfront fee.

The final scheme was classified as a bitcoin pyramid scheme, essentially a high-yield investment Ponzi scams that require a low initial investment.

Recommendations

The report further included a number of recommendations for bitcoin users.

ZeroFOX advised bitcoin users refrain from helping anyone mine bitcoin, noting that cloud mining contracts historically underperform the gains seen by simply holding the digital currency in a private wallet.

The firm also recommend avoiding transactions that begin via direct messages on social media platforms.

Coding computer via Shutterstock

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
CoinDesk Confidential: Alex Masmej

The 23-year-old CEO of Showtime, a crypto-media network, answers our questionnaire ahead of Consensus 2022.

The 23-year-old CEO of Showtime, a crypto-media network, answers our questionnaire ahead of Consensus 2022.

CoinDesk - Unknown
2
CoinDesk - Unknown
Christine Lagarde Defends Massive ECB Interventions, Says Her Son Trades Crypto

The ECB president appeared on Dutch talk show "College Tour" last weekend.

The ECB president appeared on Dutch talk show "College Tour" last weekend.

CoinDesk - Unknown
3
CoinDesk - Unknown
First Mover Americas: BTC Dominance Reaches 7-Month Highs, Alts Suffer

The latest moves in crypto markets in context for May 26, 2022.

The latest moves in crypto markets in context for May 26, 2022.

CoinDesk - Unknown
4
CoinDesk - Unknown
MetaMask Has a Plan to Help Victims of Crypto Scams

The popular Ethereum wallet has partnered with recovery specialist Asset Reality.

The popular Ethereum wallet has partnered with recovery specialist Asset Reality.

CoinDesk - Unknown