HomeNewsFTC Warns Against Rising Crypto Pig Butchering Scams

FTC Warns Against Rising Crypto Pig Butchering Scams

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  • FTC warns of rising “pig butchering” scams involving cryptocurrency investments.
  • The FBI recommends avoiding unregistered crypto services for safety and compliance.

The U.S. Federal Trade Commission (FTC) is alerting consumers to the rise of “pig butchering” scams, a type of romance fraud that involves cryptocurrency investments.

Southeast Asian in origin, this word refers to a long-term catfishing scam in which con artists prey on victims online via social media and dating services.

How the Scam Works

Before anything else, con artists establish rapport and win over their victims’ trust. Once confidence has been built, they move on to the “fattening up the pig” stage, when they convince victims to invest in cryptocurrencies, and finally, in the “butchering” stage, they take their money or cryptocurrency. Over the years, citizens have lost millions of dollars to these romance scams.

“They build a relationship with you emotionally so you are more likely to think they are an authority on cryptocurrency investing,” the FTC cautioned. The U.S. commission went on to say that victims of these romance con artists have lost tens of thousands to millions of dollars.

Canadian Citizens are Also Targeted

The Canadian Anti-Fraud Centre (CAFC) issued a similar warning in May regarding an increase in cryptocurrency frauds aimed at Canadians.

Two particular kinds of bitcoin scams have increased, according to the CAFC: investment and pig butchering or romance frauds. One such fraud claimed the $450,000 loss of Philadelphian tech specialist Shreya Datta, 37.

FBI’s Involvement and Recommendations 

Blockchain intelligence startup TRM Labs disclosed that the Internet Crime Complaint Center (IC3) of the FBI received more than 4,300 complaints about pig slaughtering, with losses totaling more than $400 million.

Before, ETHNews reported that the FBI advised against using unregistered cryptocurrency services because of their risks and the requirement to adhere to AML/KYC rules.

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Syofri is an active forex and crypto trader who has been diligently writing the latest news related to the digital asset sector for the past six years. He enjoys maintaining a balance between investing, playing music, and observing how the world evolves. Business Email: info@ethnews.com Phone: +49 160 92211628