A wave of new crypto scams has hit the cryptocurrency industry, but what is a pig butcher scam crypto? And, how can you protect your investments?
Scams have existed since immemorial dawn, and have been rampant in the digital age since the early 2000s. Billions have been lost, and people have learned their lessons—sometimes the hard way.
That’s why caution always prevails, even when things look so simple. Questions are sometimes asked, for instance, whenever you receive a random text message that seems meant for someone else. This might seem innocuous, but it could be a bait line from a scammer running a “pig butchering” scam.
These elaborate schemes are often designed to defraud victims of their hard-earned cash through phony crypto investments. The bad news is that the scheme is global and perpetrated through private crypto transactions. Once approved, it becomes challenging to recoup lost cash.
Ever received a text from a random number? It might be a pig butchering scam. Let’s dive into how this common scam works. 1/3 🧵👇 pic.twitter.com/G0nTCzkID8
— Guardio (@GuardioSecurity) March 25, 2024
To put it into context, pig butchering scams have caused victims to lose over $75 billion in the last four years, according to a study by John Griffin, a professor at the University of Texas.
What is a Pig Butchering Scam Crypto?
To keep it simple, pig butchering scams are a type of investment fraud that prey on building trust with victims before stealing their money.
In the scheme, the victim is the “pig” and is fattened when trust is built before being “butchered,” that is when funds are stolen.
Perpetrators often operate from overseas, targeting gullible people online, typically through social media or dating apps, to conceal their true identities, they use fake profiles and friendly conversations to build rapport.
Conversations like this can sometimes last weeks or months, depending on how fast the target believes what the scammer says – the goal is to make the victim feel like they’ve developed a close personal connection and are ready to engage in business or romance.
The problem is that the scammer steers the conversation towards crypto once trust is established – at this stage, talks of “amazing” investment opportunities are sprinkled all over.
So, How Does the New Crypto Scam Work?
If you end up taking the bait, here’s how you will lose your money:
- Should you agree and decide to explore, the scammer directs you to a fake crypto platform where you will see others receiving, say, 1,000% returns or more from their investments. Because of the urgency of not missing the boat, you choose to invest real money. However, when you try to withdraw, you either discover that the site is unreachable or you have to pay hefty fees.
- Another patient and alternative route the scammer can take is to invest some of their own money alongside yours in the crypto investment opportunity, further building trust. The thievery comes in when you try to cash out. Here, you will discover that withdrawal fees are either extremely high or other hurdles are placed to discourage cashing out. Hurdles can range from lock-up periods to taxes.
Here’s How You Can Stay Safe And Avoid Being “Pig Butchered”
In order to protect yourself and your digital assets from falling victim to a tumultuous pig butchering scam, follow the below steps:
- Be wary of messages that seem meant for someone else. Delete them immediately, especially if they quickly become a friendly conversation—this is usually the first step in building trust.
- Stay cautious if you reply to these texts but the conversation is steered towards crypto or investing. If possible, block the contact. As always, never invest money based on unsolicited advice, especially online.
- However, if you proceed and are interested in exploring the opportunity, do your due diligence. Avoid receiving free money offers. They’re a trap, so remember to always do your own research (DYOR).
- While scrolling through social media platforms or dating apps, don’t accept requests from accounts with perfect or unrealistic profile pictures. These are usually red flags.
Can You Get Your Money Back?
The simple, straight, and honest answer is this: slim to none.
If you end up being “butchered” and all transactions are via crypto, it will be incredibly hard for the funds to be recouped.
Crypto transactions are irreversible, unlike bank transfers. Also, the true identity of the sender is often anonymous – making it difficult to trace the person responsible for the theft. To avoid getting into this mess, stay proactive and up to date with all scams on 99Bitcoins.com.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
