Theft has been a problem in all of history, but the digital age brings new challenges. While digital currency has several advantages over cash, it comes with some unique risks, like hacking and online fraud. Cryptocurrencies such as Bitcoin solve some of these issues, but you should still take care.
The fact of the matter is no form of money is ever 100% safe without proper protection. Just because Bitcoin is more secure doesn't mean you shouldn't be careful with it. Like with any other kind of currency, you must take steps to keep it safe.
Bitcoin already boasts several security benefits over traditional currency. When you buy something with a credit card, a third party pulls the funds from your account (known as a pull transaction). Bitcoin, on the other hand, uses push transactions, where you hand the payment over yourself.
With pull transactions, hackers can pretend to be you and get your bank or credit card company to move money for them. With a push transaction, though, they need access to the money itself, not just your personal information. That's not where Bitcoin's safety features end, either.
Bitcoin leverages the blockchain, so it's decentralized and immutable. Some scholars suggest using Bitcoin to prevent identity theft[1] because the system is so secure. There are still some precautions you should take, though.
It may be more challenging to commit fraud with Bitcoin, but it's not impossible. If a criminal steals your identity, they may be able to access your Bitcoin wallet. Since there are 15 million cases of identity theft[2] each year, it's no small risk.
In 2018, a fraudster stole $5 million worth of cryptocurrency[3] through a scheme called SIM swapping. This process involves tricking phone companies into transferring numbers to a
