We understand that the increased popularity of the Bitcoin cloud mining industry created an emergence of bad actors and opportunistic crooks operating in the space. Therefore, it is essential that you take measures to ensure you are engaging with legitimate companies. But how can you spot on one to make sure you don’t become the next victim? In this article, we have listed the key factors to look out for below:
- Scams often register a domain name as a fake user
- Scams often publish pictures of directors who are not related to the project
- Scams often offering guaranteed daily returns
- Scams often offer great promotion
- Scams often have a suspect digital footprint
Scams often register a domain name as a fake user
While con artists have a plethora of techniques and tricks for deploying scams, a major part of these schemes is running counterfeit sites. There are typically several factors that can help you determine a counterfeit site. And one of these significant factors is the website’s domain name is registered in the name of a fake user. These sites may look legitimate, but they have been developed from the ground up to swindle unsuspecting users.
In order to identify a bogus website, your first step is to determine whether a real person owns the domain name. All domain name registrars offer a Whois service that lets you look up the name of the person behind a domain name and view certain technical details about the website.
Often, a domain name used for fraudulent purposes will have inaccurate information in the Whois section. If the name of the owner and contact information looks unreal, this can be helpful information when identifying a fake Bitcoin cloud mining site.
Scams often publish pictures of directors who are not related to the project
Take your time to check whether each of the team members on the website has any knowledge of the company. Are they even real people? Or are they fictitious characters? Many fake cloud mining sites use names of prominent individuals in the crypto and blockchain industry on their websites. Check out the profiles of these people to find out if they’re really associated with this company.
Try to Google their names and find them on platforms like Twitter, Github, and LinkedIn. However, it is worth noting that just being on these social media platforms isn’t enough to find out if they are real. Check when they have joined the platform as well as their activities. They are most likely impersonating someone if the account is less than 4 months old.
Scams often offering guaranteed daily returns
You need to be particularly alert to the age-old saying that “if it sounds too good to be true, it probably is.” Be wary of any investment that promises consistent performance. Any site that promises everything from making big money at the comfort of your home, such as turning $1000 into $10,000 in just thirty days is likely a scam.
Such websites usually offer extremely high daily rates of return. Once you have created an account, you may receive some payments. Other sneaky tactics used by fraudulent companies are Ponzi schemes. Like a Ponzi scheme, the bad actors are probably sending you other people’s money. So you are either being robbed or doing robbing yourself.
Scams often offer great promotion
One of the red flags that should warn you away from a Bitcoin cloud mining scam is lack of product. Mining companies that focus more on recruiting new members than selling products or services might be Ponzi scheme. While a business that focuses more on promotion is a red flag, it is not necessarily a scam but it is definitely an indication that the company may not be legit.
Scams often have a suspect digital footprint
In the real world, if you want to know the character of a person, ask his family and friends about him. The same is the case with online companies. Chances are other people who have had experiences with this company. They have shared those experiences somewhere. Google usually compiles user reviews of popular sites near the top of search results.
Also, research social networks and talk to old customers and ask all questions you consider appropriate before investing. Note that it is of utmost importance to ensure you are checking feedback and reviews from sources unaffiliated with the site. Go through what other users have said about it and make your conclusion. If you see reasons to be concerned, be cautious.
Conclusion – How to identify Bitcoin Cloud Mining Scam?
We’ve just listed a number of ways on how you can spot Bitcoin cloud mining scam. One of the main ways fraudsters con people is by running fake websites. We recommend sticking with well-established and trusted cloud mining companies only. Feedback from real users is the primary indicator of the site’s trustworthiness.