Cryptocurrency Scams Rise in Recent Years

Posted by
Jul 17, 2019
Reviewed by
Jan 16, 2024
min. read
Table of Contents

Cryptocurrencies such as bitcoin have catapulted into popularity over the past decade. Bitcoin Market Journal noted that more than 32 billion bitcoin wallets exist, and more than 7.1 million people actively use bitcoin. The rise in popularity stems from the anonymous and unregulated nature of the currency. The problem is that the rise of scams rides right on its heels.

Scammers rob cryptocurrency owners of more than $9 million every day. Currency owners lost $1.36 billion in the first two months of 2018 alone. 2019 didn’t begin any better for them. Thieves stole more than $1.2 billion in just the first quarter of this year. Cybercriminals stole the currency using tactics such as:

Phishing Scams

Phishing scams usually come in the form of emails with links in them. The sender pretends to be an entity such as a bank, social media company, exchanger, developer or the like. The sender asks the recipient to reset his or her password because of a “security breach” of some kind, and then the phisher steals personal information when the email recipient responds with it. In some cases, the sender may ask the other party to send digital money and promise that person a “huge return.”

Blackmail Scams

Blackmail and extortion emails are becoming commonplace in crypto-thievery. These criminals send random emails to people accusing them of watching adult content or being in otherwise compromising situations. They claim that they have proof of such activities. Next, they threaten the victim by saying they will release the information to the public within 24 hours if the person does not send a bitcoin payment.

Pyramid Scams

Crypto pyramid schemes work the same way other pyramid schemes do. The scam artist convinces the other person to sign up, invest some of their bitcoin, and then earn unlimited bitcoin back by recruiting new people to be a part of a revolutionary product or plan. No profits ever manifest, and only losses materialize.

Exit Scams

Exit scams involve companies that introduce new currencies and convince millions of people to invest in them. They then close down their operations and take their investors’ digital currency with them when they close.

Hacking and Cyber-Mischief

The largest percent of crypto-theft comes from hacking and cyber-mischief. Hackers take advantage of digital vulnerabilities and tap into individual computers and accounts. If you own bitcoin or a similar currency, you’ll need to protect yourself from the scams, starting with the hardware you have in your home or office.

Protect Yourself from Cryptocurrency Theft

Billions of dollars slip away from cryptocurrency owners each year, but it takes more than wit and avoidance tactics to outsmart intricate cybercriminals. You need iron-clad cybersecurity technology when it comes to hacking and theft.

Our hardware encrypted SecureDrives are hardware-encrypted devices that are ideal for storing your bitcoin. The drives are designed with military-grade AES256-bit XTS full disk hardware encryption. This means your bitcoin information will be enclosed in a digital fortress and scrambled until you use your unique key to decrypt it. The protection is isolated within your hardware device, and it can protect your digital currency while at rest in cold storage as well as while it’s en route.

The SecureDrive BT offers remote management functionality is unlocked suing an app on your mobile phone. The SecureDrive KP requires PIN entry for access and is designed with a wear-resistant keypad.

You deserve to have your digital currency under lock and key and kept safe from potential thieves. Learn about our breakthrough data security technology and how a hardware-encrypted SecureDrive can safe-keep your most precious assets.


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