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Scams involving cryptocurrencies particularly a method referred to as “Pig Butchering” have been growing rapidly as criminals use the internet to exploit social networks, messaging services, and generative artificial intelligence techniques to con people out of their money by promoting fraudulent investment products. Business Insider
A particularly notable recent case involved the loss of $280,000 by a victim who received an unsolicited friend request on Facebook, was then later contacted via WhatsApp, and ultimately made a fraudulent crypto investment through what appeared to be a legitimate company. Business Insider
Some indicators that you may be dealing with a cryptocurrency investment scam are:
Unsolicited connection requests that are followed very quickly by investment proposals. Security.org
TechTarget
Unrealistic promises of large returns in a very short amount of time and intense pressure to invest more immediately. TechTarget
Fictitious online trading platforms that provide visuals demonstrating inflated account balances, purported gains on those balances, and the ease of withdrawing profits until you actually withdraw them. Cointelegraph
According to Chainalysis, the estimated value of crypto scam revenue generated in 2024 was projected to reach $9.9 billion — the largest proportion of which will likely be for pig butchering schemes. CNBC
Ways to protect yourself against these types of scams include:
Never accept unsolicited investment offers from anyone that you do not personally know.
Do not consider an “investment expert” on social media or messaging apps who claims to provide advice with regards to making investments giving you unrealistic expectations of returns on your investments.
Be sure to thoroughly review any platform you are considering using to invest particularly if the platform does not have an established reputation.
If you are ever in doubt, always reach out to a trusted friend, family member or finance advisor before making any investments.
Cryptocurrency transactions are usually irreversible once completed. Forbes
As criminal enterprises continue to evolve with the use of artificial intelligence and social engineering, the only way to mitigate your risk of becoming a victim of these types of fraud is by remaining vigilant and educated about these trends. The Lionsgate Network will continue to provide ongoing updates regarding this rapidly evolving landscape of crypto fraud and how to safeguard against becoming a victim of one of these scams.
