US authorities have warned of the growing popularity of a crypto scam known as “pig butchering”. The Federal Bureau of Investigation (FBI) explained, “The fraud is named after the way con artists feed their victims promises of romance and wealth before cutting them off and taking all their money.”
Crypto “Pig Butchering” Scam on the Rise
US authorities have warned of a type of cryptocurrency scam called “pig butchering” that is gaining popularity at an alarming rate.
Lakewood Police Public Information Officer John Romero detailed:
The term pork butcher basically comes from a farmer who fattens the pig before slaughtering it. And in this case, it was the suspect who fattened up his victim.
The police officer explained that the pork butcher scam usually starts on social media or dating sites like Linkedin and Tinder, where the scammer finds and convinces the victim to hand over funds. The scammer then places the money in a crypto account which appears to be rising 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 a victim of the pork butcher scam, initially he was able to make a few withdrawals from the crypto account without any problem. Everything seemed legit until he received a message telling him that he had to pay over $204,000 in deposits to gain access to his account.
US Secret Service Special Agent Shawn Bradstreet commented:
Once they [the victims] see how easy it is to invest, they see an increase in their screen count, and then they end up investing all their savings within days.
He added: “The counterfeit sites used may look legitimate, but the money goes straight to the criminals.”
The Global Anti-Scam Organization, based in Singapore, is a non-profit organization staffed around the clock to help victims of pig slaughter. Grace Yuen, spokesperson for the Massachusetts-based organization, described:
We are seeing an influx of victims from the Bay Area… The scam continues to perfect itself, where fake platforms are being made, posing as legit crypto-trading sites.
The Federal Bureau of Investigation (FBI) detailed in April, “The fraud is named after the way con artists feed their victims promises of romance and wealth before cutting them off and taking all their money.” The law enforcement agency added:
It is run by a fraudulent network of cryptocurrency scammers who exploit dating apps and other social media for victims and the scam is becoming extremely popular.
Nasdaq-listed crypto exchange Coinbase also warned of Sha Zhu Pan (pig butchering) investment scams last week. “Coinbase has seen a disturbing increase in fraudulent cryptocurrency investment platforms seeking victims through hookups on dating apps and social media. We encourage our users to be vigilant against this type of engineering scam. social,” the exchange wrote.
What do you think of the pig butcher cryptocurrency scam? Let us know in the comments section below.
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