The Crypto Adviser
The Crypto Adviser

Fake Bitcoin Miner App And Platform Scams

Adam Smith
Fake Bitcoin mining app
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Bitcoin mining is big business resulting in many reputable firms operating in the sector.

But where there’s money to be made, there’s scammers lurking in the shadows ready to cash in.

Fake Bitcoin miner apps and mining websites are all too common and it’s important to know what to look for to avoid being caught out.

What is Bitcoin mining?


Bitcoin mining is the process of confirming information on the blockchain ledger and validating transactions.

During this process, new Bitcoins are created and awarded to the miner – or computer – that successfully completes the block of transactions.

A Bitcoin mining company runs the farms of specialised computers, known as ASIC miners, needed to perform the complex mathematical problems required as part of the mining process.

Bitcoin mining companies profit from the new Bitcoins they’re awarded which they can then sell, and the fees charged for Bitcoin transactions.

Bitcoin cloud mining pools and contracts

Gone are the days when it was possible to mine Bitcoin on a home PC and make a profit.

The processing power required to perform the calculations and the electricity this consumes are well beyond the means of the average individual.

It is still possible to make tiny amounts of Bitcoin by joining a mining pool, where you team up with other enthusiasts around the world, but the cost of electricity and potential damage to your hardware far outweighs the profits.

The other option is to buy what are known as Bitcoin mining cloud mining contracts.

Here, you purchase mining capacity from an existing Bitcoin mining farm without having to buy the hardware and software required, pay for the electricity or cover maintenance costs.

You’re effectively renting computing power without all the hassle of running Bitcoin ASICs yourself.

It’s here, and downloadable crypto mining apps, that scammers concentrate their efforts.

Is Bitcoin cloud mining legit?

There are genuine companies that offer Bitcoin cloud mining services, but the sector is also rife with scams and fraudulent platforms.

Legitimate companies tend to offer different packages depending on how deep your pockets are.

They may also offer the option to mine cryptocurrencies other than Bitcoin, such as Bitcoin Cash and Litecoin.

Each package will generally feature a choice of coins to mine, hashrate (calculations per second), payout frequency and the fees involved.

Because there are so many scammers in this sector it’s extremely important to choose a legitimate mining company before parting with your cash.

It’s also worth noting that some experts question whether it’s worthwhile purchasing a mining contract or more profitable to simply buy crypto from an exchange, even if the contract is legitimate.

You may be better off buying shares in a Bitcoin mining company and adding them to your Self-Invested Personal Pension (SIPP) to benefit from the tax benefits this offers.

Fake Bitcoin Cloud Miners

Scammers will often set up professional looking websites that mimic a legitimate cloud mining company’s offering.

They may steal the logo, or create one that looks very similar, and use a domain name address that appears to be the genuine company URL but is in fact subtly different.

Other fake Bitcoin cloud mining scams involve much more rudimentary websites that bear no resemblance to official platforms.

These are designed to fool people who perhaps don’t fully understand the crypto ecosystem are unsure what a genuine cloud mining website or app should look like.

Fake Bitcoin mining apps

Aside from mining contracts, there used to be various apps available that would allow you to harness the power of your device to mine certain cryptos, a popular one being privacy coin Monero.

At one point this method was often implemented using a website plugin, but it attracted controversy due to misuse.

Some websites would automatically tap into the computing power of visitors’ machines without there knowledge and mine without their permission causing a drain on their system.

Hackers would also remotely take over large networks of computers and install mining software, with the proceeds being deposited in a wallet they controlled.

These apps are largely defunct, but there are still scammers who are trying to cash in on the trend.

They will create a realistic looking dummy app that appears genuine but has no real mining capability to trick people into parting with their cash, or clicking on ads that will earn the scammers revenue.

There are also apps set up to resemble genuine cloud mining platforms, but again they only mimic the service rather than have any real function.

How to spot a fake Bitcoin cloud mining platform or app

Some fake Bitcoin mining scams are quite sophisticated, while others are much more rudimentary.

But either way, there are often several red flags which should alert people to the possibility they’re involved in a scam.

These include:

  • A newly registered domain name.
  • An app not being available through an official app store but rather a direct download.
  • Someone you’ve met online telling you about the platform or app.
  • A website or app that doesn’t contain any information about the company or contact details.
  • If there are contact details, check they’re legitimate – scammers often use addresses chosen at random.
  • Check to see if the platform has a social media presence. If it doesn’t, be suspicious.
  • Make sure you can find some reviews about the company online, otherwise steer clear.
  • Poorly designed platforms with pixelated graphics and grammatically incorrect content that doesn’t make sense.
  • If it’s an app in an official app store, check the number of downloads/reviews it has – fake apps to sometimes slip through the net and get listed.

These are just a few of the giveaways you can look for, but there are many others. Check out my ultimate guide to spotting a crypto scam.

Final word

Scammers are everywhere just waiting to pounce on unsuspecting investors who may not be clear about what they’re getting involved in but don’t want to miss out.

Fake crypto mining apps and cloud mining services are a popular way of targeting these people and spring up with alarming regularity.

The best advice is to always do your own due diligence and make sure you know exactly who you’re dealing with.

Searching Google is a great start as it’s likely that you’ll find others who’ve used the platform/app you’re looking at. If you can’t find any reviews, that’s a huge red flag.

If you’re worried that a mining app or platform is a scam get in touch. We might be able to help you avoid a very costly mistake.

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Disclaimer: Nothing on this website constitutes financial advice. The information provided is for educational purposes only.

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