The post Major Crypto Scam: The Rise of “Pig Butchering” Schemes appeared first on Coinpedia Fintech News
In recent years, the so-called pig butchering scams, considered to be a very evil form of scams, have become rampantly widespread, and a number of people from different countries have reported the scam to have ripped them off both emotionally as well as financially. This is an identity theft scam, referred to as the ‘fat-herder-shearer’ method in which the criminals first build a financial relationship with their targets, then fleece them.
How the scam works
Pig butchering scams usually get set up by the scammers receiving the victims’ messages first through text messages, social media notifications, or even dating apps with an account that the scammer specifically made. They gain the trust over time as a form of communication over a long period and in a friendly manner, much as how one feeds on a pig.
After building the trust of the victim, the scammer presents the possibility of investing in cryptocurrencies, guaranteeing the victim the necessary assistance.
To start with, the victims are convinced to deposit a small amount of cash which the con artists use to portray fake positive returns, on some occasions might pocket some of the deposited amount and allow the victims to withdraw some of the imaginary profits. This process leads to conditions, where victims put larger amounts.
At last, when the victims intend to demand their total capital back, they are offered astronomical withdrawal charges or they find themselves unable to withdraw their balance and the online fraud specialists flee with the money.
The following are examples of the recent cases of Pig butchering
This scam has been largely scaling with astounding proportions. Recently in the United States of America, on the 13 of March 2024, the U. S. Attorney’s Office of Massachusetts initiated a forfeiture complaint regarding digital currency of over 2 million dollars associated with a pig butchering scam.
It transpired, as a result of the investigation which began in the spring of 2023, that a resident of Massachusetts had been defrauded out of $400,000 and more by scammers who encouraged him to invest it in a crypto-based pyramid. The funds were successfully tracked and frozen back in January 2024 in the accounts related to the scheme.
Likewise, in December 2023, four persons in Los Angeles were arrested and charged with running a pig butchering scheme that targeted several victims and took their money. These cases reveal that money-related frauds are rather common and, according to the FBI reports, they result in billions of dollars in losses all over the world.
How to stop and shield people from falling for Pig Butchering scams
It is important that people are alert to these schemes to avoid being a victim of such cons. Those who can become victims should be very careful with such people giving investment tips especially those met online. In this regard, one must independently ascertain the validity of any investment platform that is approached before transferring any amount of money.
Also Read: Remilia DAO Hack: $4.3 Million in Stolen ETH Traced to Tornado Cash
