How to spot a crypto "pig butchering" scam


Another partnership has been announced to combat crypto-related crimes. This time, several US agencies and regulators will join forces to educate people about the so-called "pig butchering" scams.

This growing category of crime refers to schemes in which criminals befriend potential victims to lure them into fake investment platforms and steal increasing amounts of money. It is estimated that these crimes cost Americans billions each year.

In response, the US Commodity Futures Trading Commission (CFTC) has partnered with several organizations, including the FBI, the Internal Revenue Service, the Department of Homeland Security, the Securities and Exchange Commission, the American Bankers Association Foundation, and others.

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Together, they aim to "spread the CFTC’s customer education message," hoping to reach people before they fall victim to scams.

The partners are distributing a one-page infographic that illustrates the scam’s phases, from how victims are targeted and groomed to how the scam concludes. It also shows warning signs and what to do if you've been scammed.

According to the CFTC, "pig butchers" also target individuals "who think they would never fall for this type of scam," as "these fraudsters have perfected their criminal craft to entice even the savviest investors."

The commission advises that investors can protect themselves by not responding to unexpected or unsolicited text messages from unknown senders.

Meanwhile, according to the infographic, when making contact, criminals often pose as individuals interested in friendship, romantic relationships, or business investments. Victims are targeted through various platforms, from text messages and dating sites to professional networking platforms.

After the victim invests and later attempts to withdraw their money, they are told to pay a fee or taxes. However, even after paying these, the victim still cannot retrieve their funds.

Check the infographic for more tips:

pig butcher crypto
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This is not the only partnership announced to combat crypto crime in recent days.

Blockchain analysis company TRM Labs has partnered with the team behind the Tron (TRX) blockchain and Tether, the issuer of the most popular stablecoin, tether (USDT), to fight illicit activity associated with the use of USDT on Tron. It is estimated that more than 50% of USDT’s circulating supply runs through this blockchain.