MyChargeBack’s vice president of consumer protection, Michael Cohen, has touched on a sensitive point related to scams. He explains that scammers choose Bitcoin over credit cards.

He explains that the irreversibility of Bitcoin Future scam transactions, makes it one of the favorite tools of criminals. This is one of the benefits that have been repeatedly highlighted since Satoshi Nakamoto himself first did it.

In banks and related financial institutions, transactions can be frozen. The scope for fraudsters is limited. With crypto-currency, Blockchain technology makes a transaction non-reversible.

Why do fraudsters choose Bitcoin?

Another reason many fraudsters choose Bitcoin, instead of credit cards, is the difficulty of being tracked. Although there are mechanisms to determine the path of a transaction with crypto-currencies, there are also ways to hide them.

As for credit cards, this is a system strictly handled by banks. They are centralized institutions managed entirely by administrators, who can freeze at their discretion one or a group of accounts, as well as the money in them.

This means that structured criminal work can be neutralized if it is detected. As for Bitcoin, once the money has been moved from one wallet to another, it’s impossible to reverse it, which makes it ideal for fraudsters.
Michael Cohen, vice president of the consumer protection firm, MyChargeBack, says con artists choose Bitcoin over credit cards. Source: WikipediaMichael Cohen, vice president of the consumer protection firm, MyChargeBack, says con artists choose Bitcoin over credit cards. Source: Wikipedia

How to buy crypt coins with credit cards?

This is what Satoshi Nakamoto said

In his response to one of the first users to adopt Bitcoin, Satoshi Nakamoto highlighted the above-mentioned qualities of his currency. „Paper checks can bounce for a week or two, and credit card transactions have the option of being disputed up to 60 or 80 days later.

If you compare it to the most important of crypto-currencies, you’ll find that at Bitcoin, transactions become irreversible almost immediately – one of the qualities most sought after by fraudsters.

In the same vein, Cohen explains that, with some credit cards, charges can be made up to 18 months later. The cards have two ways to counter charges: unauthorized use and authorized use.

As for the first, it is a situation where some criminal has access to the owner’s credit card. The second case is authorized use, which is when the owner is not satisfied with a transaction and wants to cancel it. Here, the defense against fraud comes into play.

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Mass adoption of cryptomonies in question

The fact that a transaction is not reversed, makes it difficult to protect users, which is detrimental to the adoption of crypto-currencies. An asset such as Bitcoin, which is chosen by one or a group of fraudsters to attack users, can lead to losses for the companies that host it.

For Cohen, Bitcoin „is unfortunately a very good tool for a scammer to have as a means of collecting funds. In that same order, he explains that the digital coins themselves serve in the disinterest „of those who seek to promote the general and universal use of crypto-currencies.
Data to take into consideration

Among the most common cases in which fraudsters opt for Bitcoin are trading offers.
Credit card transactions can be disputed, even 18 months after the date they were made.
A transaction with Bitcoin or other crypto-currency, once made, can’t be cancelled.
The irreversible nature of transactions with Bitcoin makes it difficult for them to be widely adopted.

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