A massive 56% of users are aware of crypto phishing scams, according to a survey by NordVPN.
However, crime statistics show that awareness doesn’t always help to avoid experiencing fraud.
In April, the US Department of Justice announced that Americans have lost around $112-million in cryptocurrency because of the new crypto scam called “pig butchering”. The scammers mostly target people on dating apps like Tinder and try to form a romantic connection before ripping them off.
“The pig butchering scam first spawned in China, where it’s known as the Chinese phrase Shāz Hū Pán (meaning, literally, “pig butchering”). The term itself is quite literal – the scammer gains the trust of their victim (the pig) and lures them into a complex scam (fattens it up) before taking the victim’s money (the butchering),” says Adrianus Warmenhoven, a cybersecurity expert at NordVPN.
The scam starts with a text, usually on a dating app like Tinder. When the scammer matches with their victim, it’s all about building a close personal relationship that can go on for weeks or even months.
Then they casually start mentioning how much money they have – fast cars, fancy vacations, even private planes – all thanks to an investment app. Sooner or later, they propose investment advice to their unsuspecting victim.
This is where the third phase of the scam begins – the “fattening up”. The scammer will recommend a specific trading platform to try.
To build trust, the scammers will offer to make small investments first. Victims usually immediately see returns on their investments. The scammer might even encourage a user to take out some money to be sure the platform is legit. But, unfortunately, these are all fraudulent cryptocurrency trading platforms.
Once a user starts trusting the person behind the con, the victim will be encouraged to invest bigger and bigger amounts. If a user decides to finish trading, the scammer will start demanding huge fees if they want to get their money back. After that, the scammers disappear. They got all that they needed from their victim and “butchered the pig”.