SCARS Institute’s Encyclopedia of Scams™ Published Continuously for 25 Years
CRYPTOCURRENCY/BITCOIN WARNING
PLEASE BE AWARE!
No online relationship is going to ask you to send money in cryptocurrency!
IF THEY DO IT IS A SCAM!
No one that you talk to on the phone, in messages, or by email is going to ask you to make payments in cryptocurrency!
IF THEY DO IT IS A SCAM!
No government agency, local or national, is going to ask you to pay fees or fines in cryptocurrency!
IF THEY DO IT IS A SCAM!
No legitimate investment company is going to ask you to send money in cryptocurrency!
IF THEY DO IT IS A SCAM!
Cryptocurrency/Digital Coins: Why Scammers Demand Payments In It?
The rise of cryptocurrency has brought with it a new avenue for scammers to exploit unsuspecting victims.
In recent years, scammers have increasingly demanded payments in cryptocurrencies like Bitcoin, Ethereum, or other digital coins. This article examines the reasons behind this troubling trend and sheds light on the challenges it poses for both victims and law enforcement agencies.
Cryptocurrency: Anonymity and Pseudonymity
Cryptocurrency offers a high level of anonymity and pseudonymity compared to traditional payment methods. Scammers can easily create multiple digital wallets without revealing their real identities, making it difficult for law enforcement to trace and apprehend them. This anonymity shields scammers from being easily caught, enabling them to continue their fraudulent activities with relative impunity.
Cryptocurrency: Irreversible Transactions
Cryptocurrency transactions are typically irreversible once confirmed on the blockchain. This feature plays into the hands of scammers, as victims have little recourse to retrieve their funds once the payment is made. Unlike credit card transactions or bank transfers, which may be reversible in case of fraud, cryptocurrency payments lack the same level of consumer protection.
However, please note that cryptocurrency can be traced and recovered if it was a scam. Your local or national police will do that and there is never a fee.
Cryptocurrency: Borderless Nature
Cryptocurrency operates across borders without the need for intermediaries like banks or financial institutions. This borderless nature allows scammers to target victims globally without being restricted by international regulations or legal jurisdictions. They can operate from one part of the world and victimize individuals from another, complicating efforts to track and apprehend them.
Cryptocurrency: Speed and Efficiency
Cryptocurrency transactions are faster and more efficient compared to traditional banking systems, especially for cross-border payments. This speed enables scammers to quickly receive funds from multiple victims, reducing the risk of being caught before they move on to new schemes or disappear entirely.
Cryptocurrency: Exploiting Fear, Confusion and Intimidation
Scammers often use fear and intimidation tactics to pressure victims into paying. Demanding cryptocurrency payments adds an additional layer of complexity for victims, especially if they are unfamiliar with digital currencies. The fear of losing money or facing dire consequences may lead victims to comply with the scammer’s demands, further perpetuating the cycle of fraud.
Cryptocurrency: Lack of Regulatory Oversight
Cryptocurrencies, being relatively new and disruptive, face a lack of comprehensive regulatory oversight in many jurisdictions. This regulatory gap creates opportunities for scammers to exploit the system without facing significant consequences. While some countries have taken steps to regulate cryptocurrencies, it remains a challenge to enforce rules and protect victims on a global scale.
Summary
The rise of cryptocurrency has provided scammers with a powerful tool to facilitate their fraudulent activities. The anonymity and borderless nature of cryptocurrency transactions pose significant challenges for both victims and law enforcement agencies.
As cryptocurrency adoption continues to grow, it is essential for individuals to stay vigilant, educate themselves about potential scams, and exercise caution when dealing with unfamiliar or suspicious requests for cryptocurrency payments. Combining public awareness campaigns, technological advancements, and international cooperation is crucial in the ongoing fight against cryptocurrency-related scams and in protecting individuals from falling victim to these modern-day cons.
Resources:
- To learn how to report these crimes visit reporting.AgainstScams.org
More:
- SCARS Money Recovery Webinar https://youtu.be/2D8EDi8BZI4
- SCARS Webinar: Romance Scams #1 – Pig Butchering Fraud & Military Impersonation Fraud https://youtu.be/Nr1DvJcy5YI
- 2023 BIG Cryptocurrency Investigator’s Handbook (romancescamsnow.com)
- Reporting Scams To The United States Secret Service – Cryptocurrency Recovery – Forget The FBI! [VIDEO] (romancescamsnow.com)
- Cryptocurrency Fraud – Businesses That Appear To Be Engaged In Scams – A Series – May 22 2023 (romancescamsnow.com)
- Crypto Dusting Attack – Another Cryptocurrency Scam (romancescamsnow.com)
- Crypto-Scams To Avoid In 2021 (romancescamsnow.com)
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Table of Contents
- crypto.AgainstScams.org
- CRYPTOCURRENCY/BITCOIN WARNING
- PLEASE BE AWARE!
- Cryptocurrency/Digital Coins: Why Scammers Demand Payments In It?
- Cryptocurrency: Anonymity and Pseudonymity
- Cryptocurrency: Irreversible Transactions
- Cryptocurrency: Borderless Nature
- Cryptocurrency: Speed and Efficiency
- Cryptocurrency: Exploiting Fear, Confusion and Intimidation
- Cryptocurrency: Lack of Regulatory Oversight
- Summary
- Resources:
- More:
Rapid Report Scammers
In the U.S. & Canada
U.S. & Canada Suicide Lifeline 988
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ARTICLE META
Important Information for New Scam Victims
- Please visit www.ScamVictimsSupport.org – a SCARS Website for New Scam Victims & Sextortion Victims
- Enroll in FREE SCARS Scam Survivor’s School now at www.SCARSeducation.org
- Please visit www.ScamPsychology.org – to more fully understand the psychological concepts involved in scams and scam victim recovery
If you are looking for local trauma counselors please visit counseling.AgainstScams.org or join SCARS for our counseling/therapy benefit: membership.AgainstScams.org
If you need to speak with someone now, you can dial 988 or find phone numbers for crisis hotlines all around the world here: www.opencounseling.com/suicide-hotlines
A Note About Labeling!
We often use the term ‘scam victim’ in our articles, but this is a convenience to help those searching for information in search engines like Google. It is just a convenience and has no deeper meaning. If you have come through such an experience, YOU are a Survivor! It was not your fault. You are not alone! Axios!
A Question of Trust
At the SCARS Institute, we invite you to do your own research on the topics we speak about and publish, Our team investigates the subject being discussed, especially when it comes to understanding the scam victims-survivors experience. You can do Google searches but in many cases, you will have to wade through scientific papers and studies. However, remember that biases and perspectives matter and influence the outcome. Regardless, we encourage you to explore these topics as thoroughly as you can for your own awareness.
Statement About Victim Blaming
SCARS Institute articles examine different aspects of the scam victim experience, as well as those who may have been secondary victims. This work focuses on understanding victimization through the science of victimology, including common psychological and behavioral responses. The purpose is to help victims and survivors understand why these crimes occurred, reduce shame and self-blame, strengthen recovery programs and victim opportunities, and lower the risk of future victimization.
At times, these discussions may sound uncomfortable, overwhelming, or may be mistaken for blame. They are not. Scam victims are never blamed. Our goal is to explain the mechanisms of deception and the human responses that scammers exploit, and the processes that occur after the scam ends, so victims can better understand what happened to them and why it felt convincing at the time, and what the path looks like going forward.
Articles that address the psychology, neurology, physiology, and other characteristics of scams and the victim experience recognize that all people share cognitive and emotional traits that can be manipulated under the right conditions. These characteristics are not flaws. They are normal human functions that criminals deliberately exploit. Victims typically have little awareness of these mechanisms while a scam is unfolding and a very limited ability to control them. Awareness often comes only after the harm has occurred.
By explaining these processes, these articles help victims make sense of their experiences, understand common post-scam reactions, and identify ways to protect themselves moving forward. This knowledge supports recovery by replacing confusion and self-blame with clarity, context, and self-compassion.
Additional educational material on these topics is available at ScamPsychology.org – ScamsNOW.com and other SCARS Institute websites.
Psychology Disclaimer:
All articles about psychology and the human brain on this website are for information & education only
The information provided in this article is intended for educational and self-help purposes only and should not be construed as a substitute for professional therapy or counseling.
While any self-help techniques outlined herein may be beneficial for scam victims seeking to recover from their experience and move towards recovery, it is important to consult with a qualified mental health professional before initiating any course of action. Each individual’s experience and needs are unique, and what works for one person may not be suitable for another.
Additionally, any approach may not be appropriate for individuals with certain pre-existing mental health conditions or trauma histories. It is advisable to seek guidance from a licensed therapist or counselor who can provide personalized support, guidance, and treatment tailored to your specific needs.
If you are experiencing significant distress or emotional difficulties related to a scam or other traumatic event, please consult your doctor or mental health provider for appropriate care and support.
Also read our SCARS Institute Statement about Professional Care for Scam Victims – click here to go to our ScamsNOW.com website.
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