Safety

Watch out for scams

Unlike bank transfers, which can be disputed and reversed, bitcoin transactions and transfers CANNOT be reversed once they're sent. Because of this, many fraudsters are using this technology to scam innocent people out of their hard-earned money. DON'T BE A VICTIM!

Here is a great site with additional information on scams and victims. It also gives a glossary of scams which can be read. Please read this if you think you are a potential victim and do not send anyone crypto when requested:

Crypto Scam Tracker set up by the State of California-

https://dfpi.ca.gov/crypto-scams/

GENERAL RULES:

• Only trade bitcoin and cryptocurrency with people or businesses that you know and trust. If you have not met this person in real life, it could very well be a scam.

• If something sounds too good to be true, it probably is.

• BitcoinNW does not issue refunds.

COMMON SCAMS:

• SWEETHEART SCAM:

  A sweetheart scam is a trick in which a fraudster uses emotional manipulation to gain the trust of their target. Using online dating apps and similar tools, the scammer convinces their target to send money or commit crimes.

  How to spot it:

  • An online acquaintance professes strong feelings, even though you have never met.

  • Someone you meet online requests a check, money order, or wire transfer.

  • Someone contacts you through a dating site but claims to live in another city or country.

  • A person you’ve never met needs urgent help and/or it involves a financial incentive

  How to avoid it:

  Be extra cautious about requests from someone you’ve never met, especially if you have no mutual connections. These scammers prey on our desire to be valued and our willingness to help.

  • Never send money to a stranger you meet online.

  • Recognize that sweetheart scammers will attempt to manipulate you emotionally.

  • They’ll claim to fall in love with you, and then request money for a purpose that plays on your sympathy.

  • Their goal is to get as much of your money as possible, either over time or all at once.

• THE ONLINE DATING SCAM:
  
  This scam can feel the most heartbreaking, because you're not just out the funds you sent -- you've also been tricked by someone you thought you could trust. Unfortunately, this scam is incredibly common, with most victims being senior citizens, widowed, or otherwise lonely and looking for someone to connect with.
  
  Once a scammer makes a connection and establishes an online relationship, they will request money for an emergency (often a hospital bill, lawyer or immigration fees, or to buy a plane ticket to come visit you).
  
  You can protect yourself from these types of scams by refusing to send money to anyone you haven't met in person, or by sending funds through your bank or Western Union (which have more regulations to protect you and your money).
  
  Read more about these scams and how to protect yourself here or read about romance scams issued by the Federal Trade Commission here.

• High Yield Investment Programs (HYIP) – Ponzi schemes that promise passive income and high returns in short periods of time through an investment of crypto assets. These schemes often offer payment structures similar to that of multi-level marketing or pyramid schemes to recruit new investors, promising early investors a percentage of the profits of other investors they recruit. These schemes are usually heavily promoted through social media and may use paid social media promoters to market their product. Initially, the investment platform will appear legitimate and produce positive returns on a consistent basis. However, scammer will eventually take off with the invested funds and freeze the platform under the guise of technical issues, before completing shutting down the platform.

• THE NEW JOB SCAM:

  This common scam targets job seekers and usually finds its victims from craigslist or other online job postings. Once you’re ‘hired’ by the company, they’ll mail you a check and tell you to use those funds to send bitcoin for office equipment or company merchandise. The check is actually a counterfeit and will end up bouncing after a week or so when your bank can’t collect.
  
  

• THE IRS, POLICE, FBI AND/OR IMMIGRATION SCAM:
  In this scam, someone contacts you and claims to be from an official government organization (IRS, Police, Immigration, United Nations, or Military). They might threaten you with an arrest, deportation, or a fee unless you send them bitcoin to ‘settle your debt’.

  
  These legit organizations do not accept cryptocurrency payments, so any requests for bitcoin are coming from scammers posing as agents from one of these groups.

  
  If you receive a call from someone claiming to be from one of these organizations, do not call the number back. Look up the official number online — DO NOT call the number they provided or called from.

• THE ONLINE SELLER:
  Ebay Motors, Craigslist, Facebook Marketplace, etc. If you're purchasing something from someone online and they only accept bitcoin as payment, this can be a red flag.
  
  A legit merchant should be able to accept another form of payment, but scammers will use bitcoin because transfers are irreversible. Once these scammers receive their funds, they'll disappear and you'll never receive what you were trying to purchase.
  

• THE PORN BLACKMAIL SCAM:
  This is a fairly new scam, but thousands of people are being tricked into sending money because these scammers often have at least one of your personal passwords (possibly from the 2012 LinkedIn data breach), which make their claims seem more legit.
  
  Victims will receive an email claiming that there is video of them watching porn from their computer or mobile phone. Because the scammers already have private passwords, it's easy to believe that they have indeed hacked into your computer and have records (and video) of your private viewing history.

  Learn more about these phishing scams here.

• BANK AND COLLECTION SCAMS:

  Be aware of scammers posing as representatives from your bank or a collection company. They may claim that your account is overdrawn or that you have an outstanding bill with a company you regularly pay, such as your power or garbage bill, and demand payment in cryptocurrency. The scammer may send a QR code for you to use to pay the supposed bill. However, receiving a QR code to pay any bill is a red flag for a potential scam.

  Scammers may attempt to gain your trust by providing personal information about you or confirming details of the supposed bill. Despite their convincing tactics, do not disclose any personal information and hang up immediately. To verify if the call was genuine, search for an old bill and use the number provided on it to contact the company directly. Never call back the number given by the scammer or use the number provided on the QR code. Only use the official number provided by the company on your bill to protect yourself from falling victim to the scam.

• FAKE BITCOIN EXCHANGES:

  Scammers are known to create fake bitcoin exchanges that look just like legitimate ones, with professional-looking websites, customer service agents, and trading platforms. Their goal is to trick users into depositing their bitcoins into fake accounts, giving the scammers access to their funds.

  To avoid falling victim to this scam, be sure to do your research before choosing an exchange. Only use well-known, reputable exchanges with positive reviews from other users. Be wary of any exchange that offers unrealistic promises, such as guaranteed profits or high returns on investment.

  Always double-check the URL of the exchange's website to ensure it is legitimate. Scammers will often create URLs that are very similar to legitimate exchanges in order to trick users. Finally, be cautious of unsolicited emails or messages that encourage you to sign up for a new exchange or deposit funds into a new account. These could be phishing attempts designed to trick you into giving away your personal information.

  Remember, if something seems too good to be true, it probably is. Stay vigilant and always err on the side of caution when it comes to your hard-earned bitcoin.

• Beware of Crypto Investment Scams Targeting New Investors

  Guaranteed High Returns: Be skeptical of investment opportunities promising guaranteed high returns. Cryptocurrency markets are volatile, and no investment is risk-free.

  Pressure Tactics: Scammers often use aggressive sales tactics, creating a sense of urgency to push you into making quick decisions. Take your time to thoroughly research any investment opportunity.

  Unsolicited Communications: Be cautious of unsolicited emails, messages, or phone calls promoting investment opportunities. Legitimate investment opportunities are typically not presented through cold contacts.

  Unknown Platforms: Only use reputable and well-established cryptocurrency platforms. Avoid dealing with unknown or unregulated exchanges that may be fronts for fraudulent activities.

  Phishing Attempts: Watch out for phishing websites and emails attempting to steal your login credentials. Always verify the authenticity of websites before entering sensitive information.

  Unrealistic Promises: If an investment opportunity sounds too good to be true, it probably is. Exercise caution and conduct thorough research before committing funds.

  Lack of Transparency: Legitimate investments provide clear information about the risks involved. If you encounter a lack of transparency or unclear terms, reconsider the investment.

These examples are by no means the only bitcoin scams out there, but these are the ones we most commonly encounter. The best rule of thumb is to never send money to someone you've never met in person. 

If you're being asked to send bitcoin to someone, don't hesitate to give us a call at 503.985.8066. We're happy to hear your situation and go over any risks. 

Secure your wallet

Each crypto wallet is slightly different, but each should have a Backup Phrase or Master Seed.

This seed is a 12 word phrase made up of random words, and it's important to document and store this seed in a safe place (it's recommended to keep this information offline, so most people will write this down and store it in a lockbox, safe, safety deposit box, or other secure location). 

In the event that you lose your wallet ID or your password, this Backup Phrase might be the only way to recover your account and your coin.

Remember that anyone with this information can gain access to your funds, so keep this information private and secure.

Please check with your specific wallet to see how to find your Backup Phrase and see what other security features they may offer.