Admonition issued over Bitcoin script markings on sidewalks
Sometimes, cash seems to be lying around on the streets, only to reveal it's a fake once you try to use it. Similar happenings are seen with alleged Bitcoin paper wallets left behind by shady characters to set up a con.
The Bavarian State Criminal Office (LKA) is alerting the public about a scam involving phony Bitcoin paper wallets. Here's how it functions: Devious individuals leave plastic bags on the street containing a bogus paper wallet printout and a receipt showing an over 10,000 euro payment.
These bags are designed to look like someone recently bought Bitcoins and lost them. If a passerby scans the QR code on the wallet printout to sell the Bitcoins, they are redirected to a fake website. The wrongdoers seek to gather personal details and demand a high "processing fee" of approximately 3%, much more than the typical 0.5% Bitcoin trading fee. Once the fee is paid, they guarantee to release the funds, but as expected, they never do.
Paper wallets for digital currencies, such as Bitcoin, aren't limited to apps on smartphones or storage devices. You can also save your cryptocurrency assets on paper, via a simple printout that includes public and private wallet keys and QR codes for transactions.
Paper wallets can be compared to actual cash. You can create them at home or receive them from specialized ATMs when purchasing Bitcoins. If you find a plastic bag with a suspected paper wallet inside, the LKA advises you to submit it to your nearest police station. This scam has already come to light in Vienna at the start of the year, as phony paper wallets started surfacing in the Austrian capital.
- Despite the increase in digital currency transactions, instances of crime such as the use of phony Bitcoin paper wallets continue to pose threats to unsuspecting users.
- The discovery of a phony Bitcoin paper wallet can lead to significant financial loss and identity theft, highlighting the importance of cautiousness and reporting such instances to authorities like the LKA.
