QR Codes: New frontier for Bitcoin scams

A quick google search of the phrase Bitcoin QR codes returns results with 4 out of five sites being scammers. QR codes being one of the safest ways of sharing data between people who want to transact with Bitcoin, at least in theory, this finding was significant.

This is just the tip of the iceberg in what is yet to come. In fact, more than $20,000 was lost recently to this sites scamming codes.

The scammers, rather than generate the codes for the users using their websites, generate their own codes that point to their wallets. If a user falls for such a trick, the amount deposited using the code, therefore, does not end up in the intended account but rather to the accounts of the fraudsters. The fraudsters have become so brazenly confident in their trade, they are not afraid to actually call the blockchain explorer API to create their QR codes.

The scammers are evolving and devising new methods to rob people undetected and this is making tracking of such cases very hard to track.

Bitcoin industry works hard to establish a safe alternative method of payment

A report released by Ciphertrace showed that over four billion dollars ($4B) had been lost through various scams that were targetted to cryptocurrency users and investors. This is a major problem for an industry that is working very hard to establish itself as a safe alternative method of payment. This also showed a sharp increase in the amount lost due to this type of scams, where during the same period last in 2018, the figure was just about $ 1.7 billion.

One should be on the lookout for these scammers. They are becoming bolder with each passing day, devising new methods in which to freeze people’s money. They are working as hard as the security team and keeping themselves updated in new ways of developing these QR codes that point to their account.

They are not afraid, they want your money and you should be careful about which services you use on the internet.