Bitcoin Rising, Scams Rising

[uneng]

Scam schemes tend to become more sophisticated, as the common schemes aren't luring people anymore like years ago.
I believe this because old bitcoin users are aware about the scam schemes (as many of them have already fallen for them) and when they bring new people to crypto space, the newbies, they let them aware as well about the risks and traps of this environment.

[Yakamoto]

Regardless of whether bitcoin is growing or not there are a lot of scammers.Especially a lot of them where the money is spinning.And there is a lot of money in cryptocurrency.In the telegram I'm just tired of seeing messages from different scammers.They literally write every day.Therefore need to be vigilant always.

Yeah this is exactly what i was thinking, there will always be while they can get profit out of it. Of course it's truth that the higher the price the more people that is drawn towards here and those are more possible victims and for that reason more will move and come here to try to get some easy money.

Have to be really careful on who to trust in this life sadly.

The best thing that you can do with your money these days is to simply not give access to it to anyone who does not have some kind of unlimited liability. Anyone who is not part of a larger conglomerate or lacks any kind of licensing/insurance should not be considered as someone who should touch your money. At least when it comes to your life savings, that is. The fact that anyone was willing to put $1.2m into something that obviously sounded too good to be true (15x profit) is ridiculous in every sense of the word. There comes a point where you have absolutely no sympathy for the people who fall victim to these scams either since that promise should have been an obvious red flag. At this point, everyone is out for money and no-one should be trusted. Make sure that anyone who can touch your money will be required by a higher authority to pay you back (i.e. the government) should they mismanage it, and keep what money you can close to your bank. Same goes for Bitcoin. Don't go dumping full-retard amounts into "investments" that promise to pay way better than they should, unless you own an manage it.

[Kakmakr]

The exact same swindle method, called "Boiler room" scam is being done via the formal Banking sector daily, so this is not something that are just linked to Bitcoin or Crypto currencies. We see a range of old scams like Ransomware being adapted to use Crypto currency as the payment option and there is nothing sinister about that at all.

Bitcoin has value and everything that has value and that are borderless and anonymous on top of that, would be a huge attraction for criminals. Every technology has it's advantages and disadvantages. 

[yoseph]

These get rich schemes is good for one thing only and that's to enrich the scammers, if you really have money to invest into cryptos, you can either just buy and hold just like everyone else or you can learn to trade cryptos. Even though they are genuine crypto investments out there, I wouldn't really invest in one myself.

[omone1]

This is expected as usual, more scamming schemes are going to rebrand and come up with good pays. I won't be surprise to seeing the revamping of the infamous lending coin platforms. And you know what? human never learns they will still fall for this old trick because they prefer someone to think for them.  

[Phinnaeus Gage]

Scams have existed since the birth of the internet, even before it. I don't really expect scams to go away regardless of the market situation, but yea, in bullish times, scams tend to be more numerous and spread out due to the number of inexperienced investors going into the cryptocurrency markets. Keep your eyes peeled at all times, regardless of the price of bitcoin.

Well we can always recall that infamous Italian family name everyone seems to be familiar with: Charles Ponzi

He made a fortune by exploiting a flaw in the postal service, back in 1919...

In January 1920, Ponzi started his own company, the "Securities Exchange Company," to promote the scheme. In the first month, 18 people invested in his company with a total of $1800. He paid them promptly for the very next month, with the money obtained from the newer set of investors. He set up a larger office, this time in the Niles Building on School Street. Word spread, and investments came in at an ever-increasing rate. Ponzi hired agents and paid them generous commissions for every dollar they brought in. In just one month's time, between February and March, 1920, the total amount invested had risen from $5,000 to $25,000 ($62,000 to $309,000 in 2017 Dollars, respectively). As the frenzy began building, Ponzi hired agents to seek out new investors in New England and New Jersey. At that time, investors were being paid impressive rates, which subsequently encouraged others to invest. By May 1920, he had made $420,000 (~$5 million in 2017 Dollars). By June 1920, people had invested $2.5 million in Ponzi's scheme (almost $30 million in 2017). By July, he was raking in a million dollars per week and rising. By the end of July, he was approaching a million dollars per day.

He began depositing the money in the Hanover Trust Bank of Boston (a small bank on Hanover Street in the mostly Italian North End), in the hope that once his account was large enough he could impose his will on the bank or even be made its president; he bought a controlling interest in the bank through himself and several friends after depositing $3 million. By July 1920, he had made millions. People were mortgaging their homes and investing their life savings. Most did not take their profits, but reinvested. Ponzi's company meanwhile had set up branches from Maine to New Jersey.

Even though Ponzi's company was bringing in fantastic sums of money each day, the simplest financial analysis would have shown that the operation was running at a large loss. As long as money kept flowing in, existing investors could be paid with the new money. This was the only method Ponzi had to continue providing returns to existing investors, as he made no effort to generate legitimate profits.

In the end, it works as long as the money keeps flowing, whatever the means... Until it becomes large enough that the amount of incoming money cannot keep with the size of the operation.

He wasn't probably the first one, but its one of the first properly explained which is why some people tend to call all schemes "Ponzi" (I can only lament on the poor Italians born under that family name).

I clearly remember people claiming Bitcoin was one such scheme, back in the beginning... Took about 10 years to shut them off.

https://www.ccn.com/bitcoin-just-a-shady-ponzi-scheme-rants-goldbug-peter-schiff

You wanna guess another 10 years?

[tomahawk9]

I'm expecting a surge in scams related to cryptocurrencies over the next few months.

We're practically in a bull run already, it won't take too long before the general public and mainstream media start talking about Bitcoin again, the newcomers will see cryptos as a get rich quick scheme and they'll most likely fall for 'too good to be true' investment plans related to Bitcoin and other cryptos because of greed. Peope make irrational decisions when money is involved.

[jhonjhon]

Whether we like it or not, scam is everywhere and it has become a global issue now.  Regardless whether bitcoin price is high or not, there's still a possibility of scam because scammers just want to steal from people.  I think the best prevention from scam is awareness of the various types of scam happening and also one should be very cautious when transacting with anyone.

[bitbunnny]

As the value of Bitcoin is rising scamers are getting more interested. They engage more and to naive users offer different scheems for profit and becoming rich over night and people are greedy so there are always some who are easy prey. Scamers are always present regardles the Bitcoin price but in such positive situation like we are having now they are also looking for their extra part of illegal profit.

[bitzizzix]

Whatever is related to money with enormous value and many will be involved with fraud or crime just to take it in any way.
with the increase in bitcoin, the more ways people want to have it and I'm sick of them because they are very detrimental to many people.

[jak3]

Well, I did not realize bitcoin news are regular on newspapers now, although I have seen one or two of this news it's still progress. Just don't care about the scam part as if you are not smart enough to detect the scam and avoid it and fall for it because of your little devil called greed then that's not our problem. You are in a system where they literally have to fool you in order to squeeze the money out of you.

[BitcoinPanther]

Well, I did not realize bitcoin news are regular on newspapers now, although I have seen one or two of this news it's still progress. Just don't care about the scam part as if you are not smart enough to detect the scam and avoid it and fall for it because of your little devil called greed then that's not our problem. You are in a system where they literally have to fool you in order to squeeze the money out of you.

Newspapers publish all negative news that have Bitcoin in it even there is no connection to the actual Bitcoin activities.  Newspapers often sensationalized issue to the point of misleading reader into believing that Bitcoin is scam even though the one that scams people is the company that uses Bitcoin as lure to their unsuspecting victim.

Most of the scam company enticed people with a large ROI pretending to be an investment company but rather a ponzi scheme in their true nature.  They use Bitcoin trading as source of company's profit.  So whenever there is an offer that is too good to be true and includes investment, huge ROI in a matter of month and cryptocurrency, I would suggest to stay away from these offers.

[Broly46]

Scam rising? Im no sure why you try to make a claim like this. In my opinion, the Wall Street is the mother of all scams, and how many people lose millions of wealth to the scammers? And the so call the billionaires who manipulate your everyday life, and who love to label the crypto the seashell, but they prefer the blockchain and even create their own dimon coin, and no they're legit crypto unlike Bitcoin, you can't call them scam, you will be send to prison if you don't agree.

[Fu2013]

When the price of bitcoin jumps up automatically more and more people know. We cannot stop them from doing that but we can prevent it from helping in reporting suspicious matters and notifying the public about their illegal schemes or at least giving the authority the possibility of a fraud mode that you might know.

[vhns222]

Dont think we will have scams like before maybe newbies will come again and scams will be activated but not so much as was in 2017-18 better they invest in BTC and make it go higher and profs invest in new projects ICO s or IEOs which are more actual now.

[xvids]

This is true and nothing's new,
When the price of Bitcoin rise up surely people would be greedy and most of hackers and scammers would use it to be more active and to get more profit.
So at this point we should be really careful on what we are going to do and what we are going to click.

[DatKing]

Recently, the amount of fake ICOs have increased and there is not enough security measures for this situation. But it is good to see that Bitcoin price is not effected by these news.

[hahahafr]

That's very true, anytime bitcoin starts to rise and the crypto maket increases in general there arise so many projects which are purposely developed to lure investors to invest their money and never have any decent returns. Stay safe guys and don't invest in any project before doing some background search about it okay.

[Cuk0ng_bitc0in]

I think, if the scam rises, then BTC will be down.  Current conditions are BTC rising and scams do not affect BTC charts.  I have never been a victim of fraud.  but I learned from my friend.  he became a victim of pishing.  he lost $ 200.  we don't talk about scams.  but we have to discuss the BTC market which is bullish every day slowly.

[shoreno]

I think, if the scam rises, then BTC will be down. 

there many reported scams ever since before when cryptos such as bitcoin are not yet really popular but cryptos are got even stronger and bigger despite the scams and negativity that it recieves  .

Current conditions are BTC rising and scams do not affect BTC charts. 

scam do have a minor effect on the price especially if the scam was big but the price can still recover over time   .

when btc rises its normal to hear alot of scam news because people are also get tempted to earn easy money  . they quickly enter without knowing the souce of thier investment if its legit or not  .