Security News > 2023 > March > FBI warns of spike in ‘pig butchering’ crypto investment schemes
Americans are increasingly targeted in 'pig butchering' cryptocurrency investment schemes, according to a public service announcement issued today by the Federal Bureau of Investigation.
In cryptocurrency scams, the fraudsters will approach victims via dating platforms, messaging apps, or social media platforms to build trust and introduce them to an investment scheme that will eventually allow them to empty the targets' crypto wallets.
"Criminals coach victims through the investment process, show them fake profits, and encourage victims to invest more," the law enforcement agency said.
Today's warning comes after the FBI revealed in its annual Internet Crime Report that Americans lost more than $3 billion to investment fraud in 2022.
"In 2022, investment scam losses were the most scheme reported to the IC3. Investment fraud complaints increased from $1.45 billion in 2021 to $3.31 billion in 2022, which is a 127%," the FBI said.
Previous FBI alerts also warned of scammers using fraudulent investment apps and fake rewards in so-called "Play-to-earn" games to steal millions in cryptocurrency from investors.