customers’ Bitcoin safe and secure. Our
engineering team lives and breathes this, day in
and day out. And there is good reason for it. Our
reputation depends on it. We aim to be the best
and most secure way for customers to buy and
store Bitcoin in Nigeria and anywhere else.
Unfortunately, Bitcoin is attractive to scammers
for the same reason it’s attractive to you. It’s
fast, it’s international, and it’s irreversible. Not
surprisingly then, as Bitcoin usage has grown, so
has the sophistication around Bitcoin fraud.
It’s important to remember that the same
intuitive rules that apply to traditional money
also apply to Bitcoin in Nigeria and other
countries. For example, don’t store cash under
your mattress as it might get stolen, or don’t
trust your money with strangers as they could be
fraudsters. The following are some of the most
persistent Bitcoin scams.
BITCOIN PONZI, HYIP or MLM SCHEMES
These schemes attract people with promises of
low or no subscription fees and promises of
sky-high returns on their deposits. They often
rely on existing investors signing up new ones,
which is the only source of revenue or growth.
As with all Ponzi schemes, early investors get
paid with the money from later investors.
Inevitably when new investors stop signing up
and depositing, the scheme collapses, since no
more funds can be paid out.
WHAT TO LOOK OUT FOR
👉 Promises of very high returns/interest
👉 Guarantees that you “can’t lose money”
👉 Little verifiable information on company and
owners
👉 Difficulties in withdrawing your funds
👉 Social signup links with high bonuses
👉 Sense of urgency to “invest now”
BITCOIN WALLET AND EXCHANGE SCAMS
There are some websites claiming to be wallets
meant to store Bitcoin. Others claim to be
exchanges, where one can trade Bitcoin. Others
claim to do both, but many of these are in fact
scam sites.
They get you to sign up and deposit Bitcoin or
local currency for a while to build trust and then
after a while make off with the money.
WHAT TO LOOK OUT FOR
👉 Only deal with reputable, registered
companies like Luno, etc
👉 Make sure you can verify the identity of the
employees/owners
👉 See if they are mentioned in reputable local
or international news publications
👉 Treat anonymous and new exchanges, apps
and browser extensions with caution
LIST OF KNOWN BITCOIN SCAMS
Since it is very easy to set up a scam website, it
is impossible to always have an up to date list
of scams. You should do your own research and
learn to look for suspicious schemes.
Thankfully the community is sharing information
on suspected scams. Here are some threads
hosting these discussions: :
👉 http://www.badbitcoin.org/thebadlist/
👉 http://bitcoinscammer.com/
IN SUMMARY
Bitcoin is very exciting and has tremendous
potential to change the world, but make sure you
understand the risks that go hand in hand with
that.
If you are putting your money anywhere, it’s up
to you to do your own research and investigation
(Google and Reddit can take you far). And
remember: if something sounds too good to be
true, it probably is. For more information on how
to keep your Bitcoin in Nigeria and any other
place safe, visit Luno
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