A new breed of crypto scams is on the rise called “pig butchering. ”
These sophisticated cons replace the dated Ponzi approach with crafty, personalized deception, fooling even the savviest market players. Here’s what to look for.
“Pig butchering” schemes are as sinister as they sound. Fraudsters fatten their prey by weaving webs of trust on social platforms and abandoning the old ways of using one trap.
Understanding the new Crypto Scam ‘Pig Butchering’
Their endgame is to convince these unsuspecting victims to sink money into fake cryptocurrency ventures, draining their finances.
“It targets individuals who think they would never fall for this type of scam by giving them an introspective on how these fraudsters have perfected their criminal craft to entice even the savviest investors,” noted the CFTC.
With “pig butchering” scams on the rise, the CFTC is joining forces to arm the public with knowledge. They’ve rolled out a no-nonsense infographic to expose the scam tactics and share tips on dodging these new crypto scams.
Victims of “pig butchering” crypto scams endure not just drained bank accounts but also the emotional wreckage from such personalized deceit. The FBI’s 2023 numbers are grim: $5.6 billion lost to crypto swindles, a staggering 45% jump from last year. It’s a wake-up call for urgent awareness and prevention.
Around $110 million was lost via this scam tactic last year, with those over 60 years old being three times more likely to fall victim.
A Call to Action Against These New Scams
Teaming up with the American Bankers Association Foundation and other federal agencies, the CFTC is ramping up its educational efforts to shield potential victims from this newest crypto scam.
The first step to dodge “pig butchering” scams is shining a spotlight on their tactics.
Understanding scam strategies and exercising caution in digital exchanges can be your strongest defense.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
