Bitcoin for Savers Using it safely

Scams and how to spot them

The tricks scammers use around Bitcoin, the red flags that give them away, and what to do if you or your chama are targeted.

15 minBeginner6 / 8

Draft: this lesson is still waiting for review.

What you'll learn

Recognise the most common Bitcoin scams in East Africa
List six red flags that warn you of a scam
Know what to do, and what not to do, if you have been scammed

Key terms

scam (utapeli): A trick to fool you into handing over money or secrets.
phishing (hadaa ya mtandaoni): A fake message or website pretending to be a real service to steal your secrets.
seed phrase (maneno ya siri): 12 or 24 words that can restore every key in your wallet. Whoever knows them owns the money.

A message arrives in Kamau's chama WhatsApp group: "Bitsacco admin here. Send 5,000 shillings of bitcoin to this address and receive 10,000 back within 24 hours. Offer ends tonight!" The profile photo has the Bitsacco logo. It is a scam.

Common scams

"Double your money" schemes. Guaranteed daily or weekly returns, often with a fancy dashboard showing your "profits". You can never withdraw.
Fake support. Someone pretending to be from a wallet, an exchange or Bitsacco asks for your seed phrase, PIN or a "verification payment".
Impersonation. A stranger copies the name and photo of a group admin, a pastor or a well-known person.
Fake apps and links. phishing messages lead to a website or app that looks real and asks you to type your seed phrase.
Recruitment bonuses. You earn by bringing in new members. When new money stops, the scheme collapses.
"Mentors" and romance. A friendly stranger builds trust for weeks, then asks you to invest through their platform.

Red flags

A guaranteed return, or a return that sounds too good to be true.
Urgency: "today only", "last chance".
Anyone asking for your seed phrase, private key or PIN.
You must send first to receive more.
Secrecy: "don't tell your family".
Pressure to recruit others.

If you are targeted

Stop. Don't reply, don't click, don't send.
Check through official channels you find yourself, such as bitsacco.com, never through a link in the message.
Warn your chama and report the account to the group admin and the platform.

If you have been scammed

Bitcoin payments can't be reversed. If your seed phrase was exposed, move any remaining funds to a new wallet with a new seed phrase straight away. Report it to the police and to the service the scammer used. Ignore anyone who offers to "recover" your bitcoin for a fee; that is the second half of the same scam.

Try it

At your next chama meeting, one person reads Kamau's message out loud. Everyone else names as many red flags as they can. Then agree on one sentence your group will use to warn each other.

Reflect

Write your answer down, or talk it over with a friend or your chama.

Have you or someone you know received a message like the ones in this lesson? What gave it away?
Which rule from this lesson will you share at your next chama meeting?