The nature of bitcoin as an irreversible form of digital cash makes it appealing to scammers. Fraudsters are known to launder stolen money by converting to bitcoins or other cryptocurrencies. Then, they liquidate them and cash out.
Everyone in the bitcoin community should be aware of these immoral scammers and know the pros and cons of trading cryptocurrencies before getting into it. Even for pro bitcoin traders, dealing with someone anonymous is risky and here are some notes provided by our most active bitcoin vendors:
Here are some warning signs to look out for to identify scammers.
- They don't verify their details prior to making trades.
- They offer a very appealing rate that is too good to be true.
- They will send money from bank accounts different from the name they are providing. This is known as the man-in-the-middle (MITM) attack and you need to always cross-check the names given.
- They start with buying a relatively small amount first to gain your trust and then return to buy a much bigger amount after that. The faster they return from the first small purchase, the higher the chance they might be a scammer.
- They will try to not follow the instructions and claim that they need bitcoins urgently to get some sort of leeway.
- They will often provide information without being asked and skip part of the instructions.
1. Always use escrow service when trading
Scammers will encourage you to take the trade out of Singbit platform to avoid using escrow service. Firstly, they will ask you to use other communication channels like Whatsapp or Telegram to stay in touch and they claim that they'll make direct transfer of bitcoins/money to your e-wallet/bank account.
Singbit provides escrow service of all transactions, which means we freeze and secure the amount of bitcoins/ethereum being transacted and release them only when both parties confirm the transaction is successful.
Learn how our escrow service works: Trade Securely with Singbit Escrow Security
2. Do not release digital currencies when no payment is received
During the transaction, the transacted amount of digital currencies is being held by Singbit. As a seller, you should only confirm the transaction is complete after you received the money.
As a buyer, you need to transfer the money and confirm the transaction within the required time window, otherwise the transaction will be cancelled automatically.
3. Beware of phishing attempts
Never click on any unknown URL unless you know and trust the sender. Before entering your login details, make sure you are on https://www.singbit.sg/login, the traffic is encrypted (URL starts with "https"). Singbit will never ask for your login details via email and do not accept any files or email attachments that may be sent you.
Hackers use different tactics to trick their victims and get them to submit personal data. Always remember that Bitcoin transactions are irreversible, be extra careful and do not share your account details with others. It's always better to be safe than sorry.