Pig Butchering Scams on the Rise in Crypto Market

Cryptocurrencies are popular, no doubt!!!. With it, a host of cons comes easy, which prey on innocent investors.

A deceptive strategy is the so-called pig butchering scam. It is a form of a long-con that targets its victims by using their contacts.

Let’s discuss this scam on the rise in the crypto world. 

What Is the Pig Butchering Scam?

The scammers approach their victims to' fatten them up' for the kill later. That’s how they make them vulnerable to a pig butchering scam.

It all happens through a scheme that literally takes its time to get to know and gain the trust of the intended victims. It occurs only to rip them off through fruitless investments in cryptocurrence.

Here's the breakdown:

1- Friending the Victim

Most scammers begin their relationships on the web. It can be via a social media account, a popular dating application, or a messaging account. 

They gradually make friends with their partners. They chat with them for hours, days, weeks, or months. That’s how they get all kinds of vital details.

2- Introducing the "Golden Opportunity"

After familiarising themselves with the target, a scammer presents a genuine-looking trade site. It is a fake cryptocurrency trading site or financial pyramid scheme. 

It includes assuring the victim of high revenue generation with little risk. This targets the victim’s possibly-feared financial losses.

3- Early "Success"

The victim may be tricked into seeing the beginning of the supposed profits on the platform. This is a ploy by the scammers to make the victim give more money.

4- The Slaughter

Inevitably, the platform becomes inaccessible. The scammer disappears with the victim’s funds. 

Read More: The Flash Loan Attacks: How to Protect Yourself?

The Devastating Impact!

Pig butchering scams are even more invasive compared to other types of scams. These appeal to the financial and the emotional states of an individual. 

A victim can stand to lose a lot of cash. Resultingly, they fall prey to financial devastation. Plus, not forgetting the trauma that follows. 

The crypto-investment scams skyrocketed when the loss amount touched more than 2 billion.

Protecting Yourself from Pig Butchering Scams

Here are some critical steps to safeguard yourself:

1- Be Wary of Unsolicited Contact

Do not respond to strange messages and offers that guarantee money in cryptos.

2- Research Before Investing

Investors must conduct their research on any investment platform before investing any money. 

While searching the internet for information, seek genuine reviews and regulatory information.

3- Don’t Believe Hearsay

Do not fall for exaggerated earnings and guaranteed profit. More people invest in pyramid schemes because of the high profit.

4- Never Share Personal Financial Information

Do not share your cryptocurrency wallet info or bank details with anybody you do not know.

5- Trust Your Gut

When it does not feel right, it generally is not. Whenever a value makes little sense, there is no shame in turning your back on the investment.

6- Report Suspicious Activity

If you feel a pig butchering scam has scammed you, you should report the matter to the proper authorities. Make sure to report to the fake platform where the cons occurred.  

Stay Informed, and Stay Safe!

With crypto come scams. So, you need to be knowledgeable. You cannot be a victim of your money, which you worked hard to earn. Investing in the cryptocurrency market involves risks by nature. Do not neglect the risks, and pay attention to all investment rules.

For more information on Crypto scams, tax, compliance, and due diligence, contact Crypto Accountants!