Security News > 2022 > October > FBI warns of "Pig Butchering" cryptocurrency investment schemes
The Federal Bureau of Investigation warns of a rise in 'Pig Butchering' cryptocurrency scams used to steal ever-increasing amounts of crypto from unsuspecting investors.
Pig Butchering is a relatively new social engineering scam where fraudsters contact people on social media and build trust by engaging in long-term communication, establishing the idea of a fabricated friendship or romantic partnership.
At some point, the fraudsters propose that the victim invests in cryptocurrency on phony platforms that aren't linked to an actual cryptocurrency exchange or market.
Victims visiting these fake investment dashboards see massive returns, thinking their investment is already generating profit.
"The use of cryptocurrency and cryptocurrency ATMs is also an emerging method of payment. Individual losses related to these schemes ranged from tens of thousands to millions of dollars."
Forbes recently reported on a 52-year-old man from San Francisco who lost $1 million to a Pig Butchering scam after being contacted by fraudsters pretending to be an old colleague.