Beware This New Crypto Scam
Published
on Wednesday, May 1, 2024
in
Internet
What would you do if you received a message like this from an unknown phone number or social media account?
Some would ignore it—but others might point out the mistake as a courtesy, completely unaware they’ve taken the bait for a new type of scam called pig butchering.
The Scam
“Pig butchering” refers to the process of gaining a victim’s trust before taking their money and disappearing, as if fattening up a pig before slaughtering it. Here’s how it works:
- A scammer sends texts or social media messages to those they hope to steal from. These are designed to look like someone simply messaged the wrong person by mistake.
- When the scammer gets a response, they begin cultivating a relationship with the victim. A scammer gains a victim’s trust using information they find online, such as personal information the victim has posted on social media. The scammer offers romance or companionship and makes the victim feel like they share a bond.
- Once the scammer has the victim’s trust, they start talking to the victim about investment opportunities, often in the form of cryptocurrency.
- To keep up the illusion of legitimacy, the scammer doesn’t ask for money directly. Instead, they point the victim to an app on their phone’s app store. These look like investment apps with many positive reviews. Some even have customer service lines or two-factor authentication. In reality, these apps send the victim’s “investment” directly to the scammer’s bank account.
- The app displays fake results to the victim, convincing them it’s safe and encouraging bigger and bigger investments. When the victim decides it’s time to cash out, the app stops them from doing so and the scammer disappears.
How to Stay Safe
First and foremost, if you get a text that looks like someone has the wrong number, don’t respond. It’s not your responsibility, and it’s not worth the risk.
More importantly, never make an investment without thoroughly vetting it. Find out what reputable sources like Forbes or Business Insider are saying. If it seems too good to be true, it probably is.