In recent years, cryptocurrency scams have become more common, targeting individuals worldwide through schemes that exploit trust and financial vulnerability. One of the most dangerous and lucrative scams is called “pig butchering.”
These scams typically begin on popular social media apps, and more specifically dating apps such as Bumble and Tinder. The goal is to build deep emotional connections and trust. A spokesperson for Match Groups, which owns Tinder, said in a statement, “The unfortunate reality is that scammers may pull on the heartstrings on those looking for love or connection – on dating apps and on all online platforms.” (CNN)
Once trust and connection are established, scammers then start convincing victims to invest in fake cryptocurrency platforms promising high returns. To make their scheme more deceiving, the scammers will create fake websites that mimic authentic cryptocurrency exchanges, tricking victims into the lie that they are making authentic investments.
Another key strategy is the sense of urgency. Victims are put under pressure with claims of limited-time opportunities, pushing them to invest quickly and heavily. This urgency often leads to victims draining their savings or even borrowing money from friends and family, intensifying the overall emotional and financial toll.
The consequences of this scam are progressively increasing. According to FBI data, out of nearly $5 billion dollars lost to cryptocurrency fraud in 2023, $3.96 billion was tracked back to pig butchering scams. Investigators are now calling it a “mass transfer of wealth from middle-class Americans to criminal gangs.” (CNN)
Furthermore, the tactics used by these scammers are not just financially draining but also emotionally manipulative. By honing in on people’s desires for connection and financial security, scammers are able to exploit vulnerabilities that are often exposed in online dating environments. Victims not only lose money, but also experience extreme emotional distress and a sense of betrayal.
To keep yourself informed and aware of these cryptocurrency scams, be sure to take proactive steps. Stay updated on the latest scam tactics through reliable news sources and regulated websites. Equity Bank offers many resources on fraud prevention, with helpful information from types of scams to daily tips on how to keep yourself secure.
Educating our customers about these scams is very important to us. By understanding their tactics, individuals can protect themselves and their finances from falling victim to these devastating schemes. We want everyone to recognize red flags and know how to stay safe from scammers. At Equity Bank, we want the best for our customers, and we will help you do your best to keep your money and your banking safe. Visit our fraud resource page to learn more about identifying and avoiding scams.