IRS Warns of Crypto Scams
The Internal Revenue Service (IRS) has issued a warning about pig butchering cryptocurrency scams, emphasizing that these schemes are becoming more prevalent worldwide. IRS Criminal Investigation special agents stressed that these scams are targeting U.S. taxpayers the most.
Global Spread of Schemes
The IRS issued the warning during the International Fraud Awareness Week, noting that pig butchering schemes are popping up across the globe. The criminal investigative arm of the IRS, known as CI, is responsible for conducting financial crime investigations, including tax fraud and money laundering.
Sophisticated Scammers
The IRS explained that scammers use social media to entice romantic partners to invest in cryptocurrency trading platforms, only to seize their funds when they try to cash out. CI Chief Jim Lee commented on the sophistication of these scammers, expressing concern over people investing their savings in crypto and never seeing returns.
U.S. Taxpayers at Risk
With some victims losing hundreds of thousands of dollars and others facing losses totaling $2 million, CI investigators warn that U.S. taxpayers are currently the most targeted population for pig butchering schemes.
FBI and DOJ Crackdown
The FBI has also repeatedly warned about pig butchering scams, while the U.S. Department of Justice seized $112 million in cryptocurrency from a pig butchering scam earlier this year. Authorities have also seized domains used in these schemes, signaling a crackdown on this type of fraud.
Hot Take
Crypto Investors Beware: Protect Yourself Against Pig Butchering Scams
As cryptocurrency continues to gain popularity, so do the scams targeting unsuspecting investors. The IRS and other law enforcement agencies are warning U.S. taxpayers to be vigilant and cautious when it comes to investing in crypto platforms, especially if approached through social media or dating apps. With losses reaching into the hundreds of thousands of dollars for some victims, it’s crucial to exercise caution and skepticism before diving into cryptocurrency investments.