April 26, 2021

Crypto Academy

Bitcoin scams – What to look out for

The way that we buy and sell goods is constantly changing, but perhaps never quite so suddenly and drastically as it has over the past decade (and particularly in the last year).

Mode | Bitcoin scams – What to look out for

Written by James A. - Customer Support Team

The way that we buy and sell goods is constantly changing, but perhaps never quite so suddenly and drastically as it has over the past decade (and particularly in the last year).

The early 90s marked a pivotal decade with what were once unknown brands like Amazon and eBay leading us on our online shopping journey. Since then, savviness for shopping around, the nation’s desire to shop more sustainably and with social media making it more accessible for us all to be an entrepreneur; marketplaces for goods and services, selling collectables, electronics as well as pre-loved items have become commonplace.

With this rise of selling on unregulated and unprotected platforms, fraudsters have found yet another opportunity to get involved. Whether they’re targeting high demand products like new games consoles, or hoping to catch somebody in need of something particularly niche, it has never been easier to put up a fake listing that can be seen by hundreds, if not thousands.

Mode has a number of solutions to ensure the money you’re holding with us is safe. We also champion that bank transfers are from and to accounts in your name which limits what scammers can do but the same solutions are always possible with Bitcoin.

Unlike a credit card or debit card where they can submit a chargeback or cover you under the Consumer Credit Act - Section 75. Bitcoin has no consumer protection and reversing transactions needs the cooperation of the recipient. Our advice is you should treat any Bitcoin you hold like cash, keep access to it safe, don’t share keys or codes to it’s control and don’t send it to anybody else unless you trust them and know exactly what you will be getting for your hard earned Bitcoin.

We advise following these guidelines if somebody ever asks you to send them Bitcoin:

  1. Do you know and trust them?
  2. Does the offer sound too good to be true (if so, sorry, but it probably is).
  3. Ask if you can use a more secure method that will offer you protection if the recipient doesn’t hold up their side of the deal.
  4. If you’re paying for a service (such as essay writing, insurance or visa applications) check the reviews - if they’re all positive are they all recent? Are a lot of them similar?

While you can never fully be certain that anyone online is genuine, you can make it as difficult as possible for fraudsters to take your money. Don’t allow them to pressure you into compromising the security of your money or Bitcoin through claims of scarcity or time constraints. If they’re not willing to make sure you’re comfortable with the transaction, they’re probably not somebody who has genuine intentions.

Someone who is genuine will always be willing to work with you to find a solution that works for both of you. If you sense something isn’t quite right, it’s always better to be safe than sorry.

At Mode, we strive to inform and protect our customers. Here in Customer Services, we deal with all customer enquiries including incidents involving scammers and fraudsters. We see the real impact it can have. If you have concerns then seek help.

Download Mode and get ready for the future!


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