US Authorities Warn of 'Pig Butchering' Crypto Scam Becoming Popular
U.S. authorities have warned about the rising popularity of a crypto scam known as "pig butchering." The Federal Bureau of Investigation (FBI) explained: "The fraud is named for the way scammers feed their victims with promises of romance and riches before cutting them off and taking all their money."
‘Pig Butchering’ Crypto Scam on the Rise
U.S.
authorities have been warning about a type of cryptocurrency scam called
"pig butchering" that has been growing in popularity at an alarming
rate.
John
Romero, Lakewood Police Public Information Officer:
"The
term pig butchering comes from a farmer fattening up the pig before they
slaughter it. And in this case, it’s the suspect who was fattening up their
victim."
The
police officer explained that the pig butchering scam usually starts on social
media and dating sites, where the scammer finds and convinces the victim to
hand over some funds. The scammer then puts the money into a crypto account,
which appears to grow in value, making the victim want to add more funds to the
account. The scammer then disappears with a large amount of the victim’s
cryptocurrency.
According
to one victim of the pig butchering scam, initially, he was able to make a few
withdrawals from the crypto account without a problem. Everything looked legit
until he received a message telling him to pay more than USD 204K in deposits
to be able to access his account.
U.S.
Secret Service Special Agent Shawn Bradstreet commented:
"Once
they (the victims) see how easy it is to invest, they see a rise in their
screen account, and then they end up investing their entire life savings in a
matter of days."
He
added: "The counterfeit sites used can look legitimate, but the money is
going straight to the criminals."
The
Singapore-based Global Anti-Scam Organization is 24 hours
a day service to help victims of pig butchering. Grace Yuen, a Massachusetts-based
spokesperson for the organization, described:
"We
are seeing an influx of victims from the Bay Area... The scam continues to get
more advanced, where fake platforms are made, impersonating legitimate
crypto-trading sites."
The
Federal Bureau of Investigation (FBI) detailed in April: "The fraud is
named for the way scammers feed their victims with promises of romance and
riches before cutting them off and taking all their money." The law
enforcement agency added:
"It’s
run by a fraud ring of cryptocurrency scammers who mine dating apps and other
social media for victims, and the scam is becoming alarmingly popular."
The
Nasdaq-listed crypto exchange Coinbase also warned about Sha Zhu Pan
(pig butchering) investment scams last week. "Coinbase has seen a
concerning increase in fraudulent cryptocurrency investment platforms that are
sourcing victims through connections on dating apps and social media. We are
encouraging our users to be vigilant against this type of social engineering
scam," the exchange wrote.
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