Swindler Impersonating Crypto Investor Swindles Woman out of Millions in Digital Currency
Cryptocurrency Scams on the Rise: Be Aware of Pig Butchering
In 2024, a dangerous new trend in cryptocurrency scams known as Pig Butchering has expanded rapidly across the U.S., targeting unsuspecting victims with sophisticated tactics and increased scale. Here's what you need to know to protect yourself.
A woman from Maryland became the latest victim, losing over $3 million in this scam. The story began on a Korean messaging app where she met a woman who gradually built a relationship before asking for investments in a fake crypto platform.
"I put in over $3 million into this, and it showed that I was making almost maybe like 80% profit," the victim shared. "But when she got a lot more of my trust, more money would be poured in. Unless you know what you're doing, you're not going to be able to tell—especially if you've never done crypto before."
This scam, commonly known as Pig Butchering, involves scammers grooming victims through friendly conversations and providing fake investment dashboards that show steady gains. These schemes allow early withdrawals to keep the victim engaged but then lock them out once larger amounts are invested.
Pig Butchering scams have evolved this year with the use of dating apps, social media, and even "wrong number" texts to initiate contact, followed by weeks or months of building trust before introducing fraudulent crypto investments. Some schemes now even employ AI-generated personas to craft a more convincing narrative, bypassing suspicion.
Other tactics include the use of fake crypto exchanges or DeFi platforms, which look legitimate but are designed to launder funds immediately. Scammers often favor stablecoins such as USDT and DAI due to their price stability, and may use QR codes and crypto ATMs to facilitate untraceable deposits from victims.
Fraudsters have also exploited DeFi protocols to automate fund transfers and evade oversight, complicating recovery efforts. Many Pig Butchering schemes involve cross-border coordination, with operators pretending to be U.S.-based professionals while operating overseas.
The FBI has been keeping track of these scams, warning that many victims are re-targeted after the initial loss. Scammers often pretend to be recovery companies that offer to retrieve lost crypto-for a fee.
They will have lost hundreds of thousands of dollars to this scam, and then they are contacted again by these same scammers pretending to be recovery companies, where they will tell the victim, 'We can recover your cryptocurrency if you pay us a fee' - Jeremy Capello, FBI special agent
The agency urges people to exercise caution when approached online about cryptocurrency investments, especially by strangers using messaging apps. Anyone new to crypto is more likely to fall for these scams if they do not verify platforms or investment claims.
It's essential to remember that pressure to invest quickly, withholding funds for "taxes," and skepticism as a defense are all red flags of fraud. Experts advise independent verification of investments and avoiding unsolicited crypto advice.
The shift toward proactive law enforcement and crypto-native tracking tools highlights the escalating complexity of these schemes. It's crucial to stay informed and vigilant to protect yourself from falling victim to Pig Butchering scams.
Scammers utilizing advanced tactics are likely to continue using online platforms, such as dating apps, social media, and messaging apps, to target victims with Pig Butchering scams, even expanding to general news and casino-and-gambling forums.
Criminal organizations are increasingly employing technology like AI-generated personas and automated DeFi protocols to craft convincing narratives and automate fund transfers, making it harder for investigators to trace funds and recover lost cryptocurrency.
Despite the evolution of Pig Butchering scams, your awareness can be a strong defense: stay suspicious when faced with immediate investment pressure, requests to withhold funds for supposed taxes, and unsolicited crypto advice.
Be cautious when approached online for cryptocurrency investments, and independently verify investment claims to protect yourself from falling victim to future Pig Butchering scams that may cross paths with crime-and-justice news headlines.
