Crypto Scam
Background
The world of cryptocurrency can be exciting, offering the potential for high returns. But with opportunity comes risk, and scammers are constantly developing new tactics to exploit unsuspecting investors. One particularly insidious scam is the "pig butchering" scheme, a manipulative approach that targets emotions alongside finances.
Fake cryptocurrency websites and apps controlled by scammers are becoming more and more common. Sometimes the scam begins with a romance scammer who claims that they can help the victim invest in cryptocurrency. Victims are told to buy cryptocurrency of some kind using a legitimate cryptocurrency exchange, and then they are told to send their cryptocurrency to a website wallet address where it will be invested.
Example WhatsApp “investment” group involving crypto and touted gains
Sometimes the scam begins with a notice that the victim won cryptocurrency on some website, in this case messages will often be sent through Discord. In either case, the scammer controls the website, so they make it look like there is money in the victim’s account on their website. Then the scammer (or the scammer pretending to be someone official who is associated with the website) tells the victim that they have to put more money into the website before they can get their money out of the website.
Of course all of the money sent by the victim has gone directly into the scammer’s wallet, and any additional money sent by the victim to retrieve their money from the website will also go directly into the scammer’s wallet, and all of the information about money being held by the website was totally fake. This scam is also known as the pig butchering scam.
How to Spot and What to Do
Be Wary of Online Relationships: If someone you haven't met in person starts talking about incredible investment opportunities, be extremely cautious.
Promises of High Returns & Easy Money: If something sounds too good to be true, it probably is. Legitimate investments don't guarantee high returns with little risk.
Unrealistic Gains: Scammers often fabricate initial gains to hook you. Don't be swayed by screenshots or fabricated testimonials.
Pressure to Invest: Legitimate investment platforms won't pressure you to deposit quickly. Do your own research before investing anything.
Never Share Financial Information: Don't share your login details, private keys, or banking information with anyone you haven't verified.
Report Suspicious Activity: If you suspect a scam, report it to the platform where you encountered the scammer and relevant authorities.
Remember: Trust your gut. If something feels off about an online relationship or investment opportunity, disengage immediately. It's always better to be safe than sorry.
Additional Resources:
Federal Trade Commission (FTC): https://consumer.ftc.gov/consumer-alerts/2022/06/spotting-ftcs-most-reported-crypto-scams
Securities and Exchange Commission (SEC): https://sos.ga.gov/page/investor-alert-cryptocurrencies-and-digital-assets
By staying informed and cautious, you can protect yourself from these manipulative scams and navigate the exciting world of cryptocurrency with confidence. If you suspect you've encountered a crypto scam attempt, remember, ScamWiz is here to help. Upload a screenshot of the suspicious message and get our AI-powered analysis to assess the likelihood of a scam and receive recommended actions.
