Crypto bulls are roaring back, but so are the scammers

Bitcoin is flexing its muscles again, smashing records with prices comfortably above $90,000 and creeping ever closer to the mythical $100,000.

The bulls are in full force, fueled by the hype of institutional interest, political tailwinds, and a market on fire. But as the excitement reaches a fever pitch, so does the number of scams.

Scammers thrive in chaos, and with billions of dollars moving through the crypto market, they’re circling like vultures, ready to pick the bones of unsuspecting victims.

Last year, the FBI’s Internet Crime Complaint Center logged over 69,000 crypto-related fraud cases, racking up losses exceeding $5.6 billion. That’s nearly half of all fraud-related losses reported nationwide. The surge in crypto scams is no accident.

The rapid rise in Bitcoin’s value creates a gold rush mentality, where urgency and fear of missing out (FOMO) rule. “Scammers love to exploit big events like this,” said Eva Velasquez, CEO of the Identity Theft Resource Center. “They create confusion and urgency to steal your hard-earned money.”

Legitimate strategies to profit from Bitcoin are widely discussed by reputable figures, but scammers weaponize these same narratives. Advanced AI tools add sophistication, making even experienced investors question what’s real and what’s fake. And with the stakes this high, falling for a scam could be devastating.

Elon Musk scams and the art of manipulation

One of the most popular tricks in a scammer’s playbook involves Elon Musk. They exploit his name and reputation in endless schemes, from fake livestreams to phony investment opportunities. In one recent scam, fraudsters used a deepfake video of Elon promoting a crypto giveaway.

Investors were encouraged to scan a QR code, promising double returns on any Bitcoin sent. Spoiler: the victims never saw their money again.

“Elon Musk is not going to double your money if you send him crypto,” said Merrick Theobald of BitPay. But the scams persist. As co-leader of the proposed Department of Government Efficiency, Elon’s name is now tied to politics and crypto discussions, giving scammers even more material to exploit.

The schemes extend to fake coin promotions, Ponzi and pyramid schemes, phishing emails, and the notorious “pig butchering” scams.

In these cases, scammers take their time, building trust by posing as friends or even romantic partners before convincing victims to invest in fake crypto platforms. Once the money’s in, it’s gone.

Fear and fake accounts: The new normal

Scammers also weaponize fear. Imagine getting a text claiming your crypto account is compromised. It seems urgent and official. That’s exactly how fraudsters lure victims into revealing sensitive details, like their seed phrases.

“These messages look real, and people panic,” said Jeff Lunglhofer, Chief Information Security Officer at Coinbase. “Once they hand over their details, the scammers empty their accounts.”

It’s not just texts. Social media ads, emails, and fake websites are part of the arsenal. Howard Greenberg, president of the American Blockchain and Cryptocurrency Association, described how these scams work: a slightly altered URL tricks users into thinking they’re on a legitimate site.

Once they log in, their credentials are stolen. “Before you even realize it, your money is gone,” Greenberg said. The best defense? Bookmark the official websites of exchanges and never click on unsolicited links. Greenberg advises sticking to reputable exchanges like Coinbase and Gemini. “You don’t want to trust some sketchy platform based in Liechtenstein,” he warned.

Bitcoin’s historic November and what’s next

While scammers are thriving, so is Bitcoin. The flagship crypto is having its best month in what has been its best year, with a 38% gain in November.

On intraday trading, Bitcoin recently hit $97,845. Market leaders like MicroStrategy and Mara Holdings are also seeing gains, up 4% and 6%, respectively.

Much of this momentum comes from the political shift in the U.S. Trump’s re-election has electrified the market. His campaign presented him as a crypto advocate, promising clear regulations and an end to the SEC’s aggressive enforcement.

Investors believe his second term will legitimize the industry further, fueling confidence and price surges. Bitcoin ETFs are also seeing record inflows, with BlackRock’s IBIT fund leading the charge.

Analysts are now eyeing $100,000 as an immediate target, with predictions that Bitcoin could double by the end of 2025.

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