Most popular Bitcoin scams targeting businesses
For any business, accepting Bitcoin payments can open up great opportunities, but it also requires staying informed about potential threats. Just like with regular payments, scammers are always coming up with new ways to trick both businesses and customers through Bitcoin scams like phishing attacks, wallet hacks, or even fake payment confirmations.
Knowing how Bitcoin scams work and partnering with trusted payment processors gives you the power to stop them before they cause damage. Here’s what you need to know to keep your business safe while offering your customers one of the most innovative payment solutions available today.
Most popular Bitcoin scams targeting businesses
From phishing schemes to fake payment confirmations and ransomware attacks, businesses that accept Bitcoin as a form of payment need to be aware of the most common scams used by cybercriminals.
Phishing scams
Phishing scams involve cybercriminals tricking businesses or customers into revealing sensitive information, such as login credentials or private keys, by pretending to be a trusted entity. These scams are often carried out through fake emails, fake websites, or even social media messages that look and read too enticing.
How to protect your business:
- Always verify the identity of the sender before clicking on any links.
- Use multi-factor authentication (MFA) for all crypto-related accounts.
- Educate employees and customers on recognizing phishing attempts, for example, by running phishing simulation tests or providing real-world examples of common scam emails.
- Keep software and security protocols up to date.
Wallet hacking
Crypto wallets, both hot (online) and cold (offline), can be targeted by hackers looking to steal funds. Hot wallets are particularly vulnerable since they are connected to the internet, making them a common target for cyberattacks. If you accept payments directly instead of through a payment processor, you need to be hyper-aware of this very common scam.
How to protect your business:
- Store only a small portion of funds in hot wallets; keep most assets in more secure cold storage.
- Use wallets that offer strong encryption and security features.
- Regularly update and monitor wallet security settings.
- Implement strict internal access controls to limit exposure.
- Consider converting your crypto into fiat to avoid this scam altogether.
Fake payment confirmations
Cybercriminals may generate fake transaction receipts to convince businesses or customers that a Bitcoin payment has been made when, in reality, no funds have been transferred. In other cases, they might even send proof of payment, such as a screenshot, but cancel the transaction before it is confirmed on the blockchain.
How to protect your business:
- When possible, always verify transactions on the blockchain before releasing goods or services.
- Use a reliable Bitcoin payment processor with real-time transaction verification, blockchain monitoring, and automated fraud detection to confirm payments securely.
- Set clear payment confirmation policies with customers.
- Train staff to recognize fake confirmations, such as identifying discrepancies in transaction IDs or verifying payments directly on the blockchain.
Ransomware attacks
Ransomware is a type of malware that encrypts a company’s data and demands a Bitcoin ransom in exchange for unlocking it. Many businesses, including fintech and online gaming operators, are targeted by these attacks due to their high liquidity.
How to protect your business:
- Back up all critical data regularly and store backups offline.
- Keep security software updated and conduct frequent vulnerability assessments.
- Implement strong access controls and endpoint security.
- Ensure employees know how to spot suspicious emails and files, as human error is the most common vulnerability.
Giveaway scams
Scammers can impersonate reputable companies or influencers and claim to be giving away Bitcoin. They create fake profiles or websites, tricking people into believing your business is hosting a promotion. Then, they ask users to send a small amount of crypto to “verify” participation, promising a larger return—something that never happens.
How to protect your business:
- Monitor your brand’s presence online to spot unauthorized giveaway promotions using your name.
- Clearly communicate official promotions on your website and verified social media channels.
- Warn customers about giveaway scams and educate them on how to verify legitimate campaigns.
- Report fraudulent giveaways impersonating your business to relevant authorities and social media platforms.
Fake websites
Scammers can also create websites that mimic legitimate Bitcoin payment platforms or any other platforms that offer Bitcoin payments, thus tricking businesses and customers into entering sensitive information. They can also make transactions go directly to the scammers’ wallet.
How to protect your business:
- Always verify URLs before logging into payment platforms.
- Look for HTTPS and security certifications on websites.
- Never enter login credentials on unfamiliar sites.
- Use password managers to prevent typing credentials on fraudulent sites.
What to do if your business suffers Bitcoin scams
If your business or your customers fall victim to any of these Bitcoin scams, acting quickly can help minimize damage and improve recovery chances.
Steps to take:
1 — Report the scam: If scammers are using your business name or tricking your customers, act fast. Report the fraud to law enforcement, crypto fraud agencies, financial regulators, and your payment processor if you use one.
2 — Freeze affected accounts: If you detect suspicious transactions, lock down your business Bitcoin accounts immediately. Contact your payment processor or crypto exchange to halt any further unauthorized activity.
3 — Conduct an internal security review: Investigate how the scam happened. Was it a phishing attempt? A fraudulent transaction? Understanding the attack will help prevent future incidents.
4 — Alert customers: Transparency is key. Issue a statement on social media, via email, and on your website clarifying the scam, share tips to help customers avoid similar schemes, and direct them to your official communication channels.
5 — Learn from the incident: Use the experience to strengthen your security measures. Implement stricter verification processes, train staff on fraud detection, and update company policies to protect against future threats.
Protect your payments from Bitcoin scams with ElenPAY
Security and trust are essential when accepting Bitcoin payments, and ElenPAY is built to provide both. Backed by industry-leading cybersecurity expertise, we ensure that every transaction is safeguarded with advanced protection measures, allowing businesses to operate with confidence in the crypto space.
With robust encryption, multi-signature wallets, real-time monitoring, and full regulatory compliance, our Bitcoin payment processor offers a seamless and secure payment solution tailored to your business needs.
Take the next step in securing your Bitcoin transactions—get in touch with our team today to learn how ElenPAY can help protect your business from Bitcoin scams.
