SHOCKING: Crypto “Pig Butchering” Scams on the Rise! What You Should Know

SHOCKING: Crypto “Pig Butchering” Scams on the Rise! What You Should Know

The post SHOCKING: Crypto “Pig Butchering” Scams on the Rise! What You Should Know appeared first on Coinpedia Fintech News

In recent years, the sinister “pig butchering” scams have become alarmingly widespread, victimizing people worldwide both emotionally and financially. This identity theft scam, also known as the ‘fat-herder-shearer’ method, involves criminals building a financial relationship with their targets before defrauding them.

Here’s a closer look.

How the Scam Works

Pig butchering scams typically begin when scammers contact victims through text messages, social media notifications, or dating apps using fake accounts. Over time, they gain the victims’ trust through extended and friendly communication, much like how one would feed a pig.

Once trust is established, the scammer suggests investing in cryptocurrencies, promising help and guidance. Initially, victims are persuaded to deposit a small amount of money. The scammers then create fake positive returns, sometimes allowing the victims to withdraw a portion of these imaginary profits. This encourages victims to invest larger amounts.

When victims try to withdraw their total capital, they encounter exorbitant withdrawal charges or find they cannot access their funds at all. By this point, the scammers have disappeared with the money.

Notable Cases

This scam has grown rapidly. On March 13, 2024, the U.S. Attorney’s Office of Massachusetts initiated a forfeiture complaint regarding over $2 million in digital currency linked to a pig butchering scam. An investigation that began in spring 2023 revealed a Massachusetts resident had been defrauded of over $400,000 by scammers who lured him into a crypto-based pyramid scheme. The funds were tracked and frozen in January 2024.

Similarly, in December 2023, four individuals in Los Angeles were arrested and charged with running a pig butchering scheme that targeted multiple victims. These cases highlight the prevalence of financial frauds, which, according to FBI reports, result in billions of dollars in losses worldwide.

Staying Alert Against Scams

To avoid falling victim to such scams, it is crucial to stay alert. Be wary of unsolicited investment advice, especially from online acquaintances. Always verify the legitimacy of any investment platform independently before transferring money.

By being informed and cautious, you can protect yourself from the devastating impact of pig butchering scams.

Also Read: Remilia DAO Hack: $4.3 Million in Stolen ETH Traced to Tornado Cash