The Current State of Bitcoin Scams and Defensive Strategies Every Individual Investor Should Know

Introduction

With the rapid proliferation of digital assets, scams targeting cryptocurrencies are diversifying and becoming more sophisticated at an unprecedented pace. Cryptocurrencies such as Bitcoin are supported by many users due to their convenience and anonymity, but at the same time, they have also become “targets that are easy to hit” for scammers. This article introduces the realities of scam techniques and practical measures to protect your assets.

Background of the Diversification of Bitcoin-Related Scam Methods

Cryptocurrency scams have evolved beyond simple asset theft into clever schemes that exploit users' psychological vulnerabilities. On the technical side, new methods such as fake websites, malicious contracts, and deepfake videos are emerging rapidly, making detection difficult. Meanwhile, users' lack of knowledge and decreased vigilance have led to an increase in victimization year after year.

Especially in the Japanese market, since the 2017 cryptocurrency boom, the number of consultations regarding scams has continued to rise, and scammers' tactics are becoming increasingly sophisticated.

Common Types and Mechanisms of Cryptocurrency Scams

Ponzi Scheme Investment Scams

Claims of “20% monthly returns” or “principal guaranteed and assets will grow” are common in investment solicitations. These typically involve projects with no proven track record raising funds, with payouts to early investors funded by subsequent participants' investments.

Elaborately Crafted Fake Websites

Scam sites impersonating major exchanges or wallet services are replicated with such precision that they are indistinguishable from legitimate ones. When users are lured and enter their private keys or passwords, their assets are instantly drained.

Impersonation of Celebrities on Social Media

Scammers hijack accounts of celebrities on Instagram, X (formerly Twitter), YouTube, etc., or create fake accounts that look identical, promoting campaigns like “Send Bitcoin and get a return.”

Fake Airdrops

Scammers lure victims with promises of “free new tokens,” then gain access to their wallets or get them to approve malicious smart contracts.

ICO/IDO Scams

Many “rug pulls” occur where, after raising funds through token sales under the guise of fundraising, the project team cuts off contact and disappears with investors' money.

Practical Measures to Prevent Scam Victims

1. Verify the Source of Information Before Sending Funds

Always confirm investment solicitations and project information directly through official websites, social media, or community channels. Never respond to unverified sources or single-instance information providers.

2. Choose Exchanges and Wallets with Strong Security Records

Select exchanges and wallet services that have high security standards and robust user support systems. Using trusted platforms significantly reduces the risk of scams.

3. Never Share Private Keys or Seed Phrases

This is the starting point of all cryptocurrency scams. If asked for your private key or seed phrase, consider it 100% a scam. Keep your wallet information securely on paper and do not share it with anyone outside your trusted circle.

4. Be Cautious When Approving Wallet Connections

While “Connect Wallet” buttons on DeFi services or NFT marketplaces are convenient, they carry risks of malicious contracts. Always verify the project's background, operators, and whether security audits have been conducted before connecting.

5. Use Multi-Factor Authentication and Manage Passwords Carefully

Enable two-factor authentication (2FA) on exchanges and wallets. Use strong, complex passwords, update them regularly, and avoid reusing passwords across multiple services.

6. Maintain a Cold, Rational Approach to Profit Claims

Phrases like “easy money” or “guaranteed profits” are common scam tactics. When in doubt, consult trusted experts or close acquaintances and make decisions calmly.

Response Procedures if You Fall Victim

If you experience a scam, immediately take the following actions:

• Protect Your Wallet: If your private key has been compromised, create a new wallet and transfer your assets there.
• Report to Authorities: File a report with the police or consumer protection centers to document the incident.
• Notify the Platform: Report unauthorized access to your exchange or wallet service and request an investigation.
• Preserve Evidence: Save all relevant evidence, including transaction history, scam emails, screenshots, and communication records.

Conclusion: Knowledge and Vigilance Are Your Best Defense

Cryptocurrency scams are constantly evolving, with increasingly sophisticated methods. However, by acquiring basic security knowledge and maintaining vigilance in daily activities, most scams can be avoided. To protect your assets in cryptocurrencies like Bitcoin, it is essential to use trusted services, improve your information literacy, and establish strong security habits. Now is the time to develop the self-defense skills necessary in the digital asset era.