Pig butchering crypto scams are a persistent issue in the digital asset market that continues to harm the industry’s reputation and deceive unsuspecting victims. Scammers establish relationships through social media or dating apps, gain victims’ trust, and introduce fraudulent crypto investment opportunities. Victims, often with limited financial knowledge, are then persuaded to invest in crypto assets and set up exchange accounts. The scammers create fraudulent platforms that appear legitimate and show artificial gains to deceive victims. However, when victims attempt to withdraw funds, they are unable to do so. Scammers pressure victims into transferring more money under various pretexts and then disappear, leaving victims with irreversible losses.
These scams, named after the manipulative tactics used by scammers, tend to be longer and involve establishing trust with victims. Vulnerable groups, such as the elderly, are commonly targeted. However, governments, including the California Department of Financial Protection and Innovation, are stepping up efforts to combat these frauds. Last year, the department launched a cryptocurrency scam tracker to help residents identify and avoid such scams.
Recognizing common types of swindles can help protect the public. In recent cases, victims fell prey to impostors and lost significant amounts of money. While some scams target larger sums of money, others aim for smaller amounts. California Attorney General Bonta has warned citizens about the risks associated with cryptocurrency investments and urged them to be cautious. In April, the US Department of Justice successfully seized millions of dollars linked to pig butchering scams. The issue extends beyond California, with a survey revealing that 35% of Canadian crypto owners have been victims of crypto scams.
BeInCrypto has reached out to California’s DFPI for comment on this matter.
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