Cryptocurrency is a popular digital currency that is used for quick payments and to avoid transaction fees. It is not backed by the government so when your cryptocurrency is lost, they are not required to help you get your money back. Cryptocurrency provides a degree of freedom but also risk for the investor. A lot of the risks are connected to scams. In recent years, the “pig butchering” scam has caused people to lose millions of dollars. If you would like to invest in cryptocurrency, make sure you know about this scam.       

What is the “Pig Butchering” Scam?

Scammers pick a target or “pig” and con them into investing large sums of money into fake cryptocurrency trading platforms, therefore, “butchering” the victim’s finances. The platforms are developed to look so real that the victim believes they are earning on their investments. The “pig” only realizes something has gone wrong when the scammer and all their invested money is gone. The scammers have been making initial contact through private chat on social media, dating apps, or WhatsApp. They may even reach out through text message, saying they have the wrong number but continue the conversation to try to connect with you. The “pig butchering” scam is like the romance scam because the scammers build trust with their victims over time. As the trust is built, the victims begin to invest more and more money into the fake cryptocurrency platform. It is a long game con for these fraudsters.

4 Warning Signs

A) If a person tries to create a deep relationship with you out of the blue be wary. Scammers will pretend to have previously had a personal relationship with you to build on that trust.

B) When a person keeps trying to turn the conversation to investments that are earning them high returns, it may be a scammer. It is a way for the scammer to introduce the idea of a specific investment having a positive impact without telling you to do it.  

C) If a person will not speak with you over the phone, it is a red flag. You may be speaking to a person online or over text, but they could be a completely different person. This scammer will not want to give up the con so they will avoid speaking to you over the phone.  

D) When a person gives you more flirtatious attention when discussing investments, it is time for concern. With the “pig butchering” scam, the person may promise you a future together in hopes to get you to invest more in the fake cryptocurrency platform. They rely on you caring for them to do anything to make them happy.  

When looking to invest in cryptocurrency, make sure you are not a victim of a scam by watching out for these red flags. Learn more about the different cryptocurrency scams by clicking here.  

Source: Federal Trade Commission, Bitcoin.com, CBS