What is a Fake Giveaway?
A common cryptocurrency scam that has gained traction over recent years is the cryptocurrency fake giveaway scam, also referred to as the “Bitcoin Doubler”. This particular scam came to prominence at the peak of the 2018 bubble and is another one of the many crypto scams that can be found on multiple online websites.
There are several variations to the scam which is responsible for outwitting thousands of people out around the world each year.
One example is a platform called Moon Bitcoin Live. This bitcoin doubler scheme guarantees to double their clients’ bitcoins within 24 hours. The website includes a number of over-the-top statements with numerous unconfirmed claims and assertions. Users entering the website are greeted with a big, bold banner that reads “Moon Bitcoin Live Awesome Investment” and they even go as far as to claim they are the first trusted bitcoin doubler with guaranteed payouts. Moon Bitcoin Live works much like the many fake doubler platforms that can be found online.
How does the Bitcoin Doubler Scam work?
There are several alternative approaches to the doubler scam. One will claim that to have the ability to double your bitcoin or cryptocurrency in an hour for a fee. Another scam allows you to “bet” your bitcoin for a chance to double it and then there are multi-level marketing (MLM) scams that can often be more of a dangerous form of deception.
The Bitcoin Doubler Expert Scam
The scammer will call a victim and advise that they are a “Crypto Doubler Expert” using technical terms to give the impression that he has expert knowledge on Cryptos. The scammer will then make claims to have a special “doubler script” that he encoded himself and claim to be able to double the victim’s bitcoin or cryptocurrency for a fee or sell the victim the “doubler script”.
The “Double Your Bitcoin Instantly” Betting Scam
In this variation of the scam, websites will assert that investors can double their bitcoin or cryptocurrency by placing a “bet” on their investment. Many of the sites will claim that the chance of doubling an investment is more than 50%. After some clever convincing, the website will direct investors to a bitcoin wallet address where they can place their bets. Once the bitcoin or crypto has been transferred, it’s lost in cyberspace, never to be found again.
The Bitcoin Doubler MLM Scam
This model is based on a multi-level-marketing, or pyramid scheme where scammers use various techniques to sell the idea of increasing a particular investor’s crypto portfolio. Victims are scammed into sending their bitcoins to a fake wallet where it is promised to increase in value parallel to the number of additional people they recruit. The model continues with the victim selling the idea on to further investors who send through their cryptos and unknowingly continue the scam.
Many doubler scams operate their schemes in the same way:
- They try to excite their victims with promises of financial success and offers that always seem too good to be true
- For legitimacy purposes, they try to get users to register their name and contact information
- In order to sign up or register, users have to pay a registration fee or deposit
Identifying a Fake Giveaway
As a result of the speed that information spreads over the internet, cybercriminals take advantage of unsuspecting investors and offer free giveaways of bitcoin and other cryptocurrencies in exchange for a fee. If you do your research and understand what to look out for, identifying a fake giveaway could save you your investment and a lot of trouble.
The following are a few of the red flags that you can keep an eye out for that could indicate a fake giveaway or doubler scam:
- An unknown company will contact you out of nowhere to try and convince you to invest with them.This could either be through cold calling, text messages, social media or via email.
- The company will use pressure tactics to try to get you to make a quick uninformed decision. This is usually done using various techniques such as offering a limited time offer, a bonus or big discounts if you sign up before a certain time.
- Constant calls or emails to try and keep you engaged and to pressure you into making a hurried decision.
- They offer a too good to be true offer where they downplay the risks while exciting you with guaranteed high returns.
- Their website has no information about the ownership, corporate structure, or physical address of the company. In addition to this, trying to reach the company is almost impossible unless they are trying to recruit you.
- The company is not licensed or registered with any financial regulatory body.
If you take a look at the various types of Bitcoin or crypto doubler offers, you will notice that they all follow a similar approach and pattern which is generally a very vague description of the offer, the business model and information on the company.
In addition to this, scam websites often have domains that were recently registered with no information about who is behind the operations.
Finally, it must be noted that there are no algorithms or magic strings of code that can instantly double a bitcoin or cryptocurrency. Anyone making such outrageous claims should be reported immediately.