07-15-2020 icon

Scams Using Bitcoin As Payment Method On the Rise in Nigeria

By Sagetwriter
Bitcoin Scams In Nigeria

“You know what my problem with man is? For everything that has the potential to become beautiful, man can turn it into something ugly.” – RR

The above quote echoes the current sentiment around the cryptocurrency industry, as more schemes using Bitcoin as payment method continue to rise in Nigeria.

While this is alarming, what is more worrisome is the gullibility of the victims of these platforms. Most users fail to do basic research into the claims of these fake companies or maybe just maybe users are moved by greed or we can blame it on the economic situation.

Why Do These Scammers Choose Bitcoin?

For these cyber miscreants, Bitcoin and cryptocurrency payments have become a choice payment method for a number of reasons:

First is the “perceived privacy,” criminals think Bitcoin and cryptocurrency transactions are 100% untraceable. While this assumption is true to a degree, new tech, improved Know-Your-Customer processes by exchanges, and other measures are making it easy to track down illicit funds.

Another narrative pushed by these crypto scammers is the High Yield / High Returns benefit. They lure their prospective victims with huge profit expectations in the shortest possible time E.g 40% in 7 Days all thanks to crypto volatility; and what a time to this than when people are seeking alternative sources of income.

Scammers also spread ideas of a future industry with gains all embedded in an MLM or MMM-styled format to sound legitimate and convincing to the prey; when in the real sense they are ponzi schemes which rob Peter to pay Paul.

The falling Naira Value in Nigeria has also further compounded the issue, with these platforms linking the US dollar value to Bitcoin (BTC) and promising financial freedom through what they call “online investments.”

Notable examples of these schemes include Pennywise, Forsage, Ethereum million money and more.

The Big Problem and How to Avoid These Bitcoin Scams

What is the Big Problem? People fail to Do Their Own Research.

Users of these platforms mostly swallow these claims hook, line and sinker. Many even forget the woes from the MMM times, and it all ends in exit scams, no profits, and no refund of capital.

Enough of the backlash, here are a few tips to guide you against Bitcoin Scams and Investment Schemes:

  • ₿ Always DYOR (Do Your Own Research).
  • ₿ Seek advice ONLY from verified and honest professionals in the cryptocurrency industry – Note that some friends may promote these crazy schemes, this does not guarantee that they know what they are doing.
  • ₿ Be Realistic and Shun Greed – If the yield sounds too good to be true, it most likely is.
  • ₿ Learn to DIY (Do It Yourself) – If you’re keen on Bitcoin trading and investing then you should learn from trusted tutors or using free online resources. Enjoy full crypto freedom. Be your own Boss.
  • ₿ MLM schemes – The technique – Pay John, to Refer, and Pay Esther has been known to fail, so avoid them.
  • ₿ Remember the Long Term narrative of cryptocurrency. Even as there are profits to be made regularly, always remember that crypto holding or trading is a long term process; NOT A GET RICH QUICK SCHEME.
  • ₿ Guard your capital: Cryptocurrency transactions are irreversible, so be certain before making any moves – If them chop you E Don Finish O!!!
  • ₿ Be wary of Bitcoin programs that guarantee a fixed profit percentage over a given duration. It is most likely a scam.
  • ₿ Be on the look out for fake proof of profits. Many schemes post edited images and false testimonials.
  • ₿ Shun any cryptocurrency programs not backed by a verifiable regulatory authority like the SEC.
  • ₿ Stay Updated with crypto regulation news and industry guidelines on Bitcoin.NG.

In all, Always Promote Good Use Cases for Bitcoin and Cryptocurrency.

Also Read: Bitcoin VS Cash: The Good, the Bad, and the Ugly