Bitcoin ATMs

Bitcoin ATMs are like traditional ATMs except they allow you to convert cash into Bitcoin. The promise of Bitcoin ATMs is that they don't require any form of identification so enable you to buy Bitcoin anonymously.

At best, legitimate Bitcoin ATMs often charge exorbitant fees, sometimes upwards of 20% or more, as a premium for the privacy they offer. At worst, compromised ATMs will just steal your money.

Protect yourself from these scams by:

• Researching Bitcoin ATM companies and locations to know if they are trustworthy and what fees to expect
• Protecting your identity when interacting with Bitcoin ATMs
• Buying Bitcoin at reputable exchanges

Compromised Key Generators and Wallets

Backing up the private keys to your wallets won't help you if the keys aren't generated and handled securely. Using anything other than offline, secure, reputable hardware devices that specialize in key management introduces significant risk of loss and theft.

• Malware or keyloggers may steal keys displayed or entered into an internet-connected computer
• Software supply chain attacks may infiltrate reputable software with malicious clones that will sweep funds
• Software bugs may result in keys that are easy to brute force as was shown with the Milk Sad Disclosure

Protect yourself from these scams by:

• Always using secure hardware wallets to manage private keys
• Always verifying receive and change addresses on hardware wallets
• Disabling auto-update of sensitive apps and verifying all updates before installing them

Deep Fake Ads Promising Free Bitcoin

Deep fakes are AI generated videos that can simulate facial patterns and speech patterns of an individual in a realistic way and superimpose those simulations onto an existing video of the individual to make it look and sound like they're saying things that they never said. Scammers are using deep fakes of respected Bitcoiners like Michael Saylor to publish ads suggesting that you can double your Bitcoin by sending Bitcoin to a specific address. Once you send the Bitcoin, that Bitcoin is lost forever.

Protect yourself from these scams by:

• Never sending Bitcoin to anyone promising free Bitcoin
• Reporting any malicious ads you encounter

High Yield Savings Instruments Where You Don't Control the Keys

Anyone offering high interest rate of return if you custody Bitcoin with them is likely rehypothecating your funds in a high risk way. The nominal interest rate you are promised is never enough to offset the risk you assume by relinquishing control of your Bitcoin. If the provider becomes insolvent like BlockFi, Celsius, and FTX in the past, your funds are likely lost forever.

Protect yourself from these scams by:

• Buying and holding Bitcoin for the long term in cold storage
• Never relinquishing control of your keys in any financial services arrangement

Phishing Attacks

Scammers may send emails or call you on the phone under false pretenses and request that you send Bitcoin to an address they provide. Often these engagements are designed to look, feel, and sound like legitimate communications from reputable companies, relatives, utility providers, or other trustworthy sources.

Protect yourself from these scams by:

• Always questioning anyone requiring immediate payment for anything unsolicited
• Never revealing any potentially compromising information about yourself or your finances
• Never clicking on any links or installing any recommended software within the suspicious communications
• Always verifying communications with the supposed source through independent channels

If you'd like a trusted partner that can tailor guidance to your specific needs and guide you on your Bitcoin journey, schedule a call with us.