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The U.S. Secret Service has recently acted to combat a rising trend in cryptocurrency fraud by seizing another web domain linked to “pig butchering” scams. This fraudulent scheme involves scammers gaining the trust of their victims over time before defrauding them through deceptive crypto investment platforms.
According to a report from the Secret Service, the domain NFT-UNI.com was involved in a fraudulent operation that cost a victim in New York State $172,405.61 from November 2023 to March 2024. Collectively, other victims associated with this site have reportedly lost upwards of $4.5 million.
Recent Developments
United States Attorney John A. Sarcone III emphasized the significance of this seizure, stating, “By seizing this website, we are able to strike a blow to a criminal organization that financially victimized numerous individuals, including a member of our community and senior citizens around the country.”
This seizure follows an earlier action taken in May 2024, when another domain, OKEX-NFT.net, was taken down. Both domains were supposedly part of a larger scheme aimed at drawing in victims through fake cryptocurrency investments that would disappear as soon as money was sent.
Understanding Pig Butchering Scams
The term “pig butchering” aptly describes the method employed by these scammers. Similar to fattening a pig before its slaughter, victims are cultivated through online relationships, eventually leading to their financial exploitation.
Victims often end up losing significant amounts of money, including their entire life savings and their homes.
These schemes typically begin when scammers reach out through social media, dating apps, or messaging services. They establish a friendly or romantic connection and gradually introduce the concept of cryptocurrency investment. Once trust is established, victims receive links to seemingly legitimate trading platforms, such as NFT-UNI.com in the latest case.
The victim of the NFT-UNI.com scheme was led to believe that they were engaging in a legitimate cryptocurrency venture. After transferring over $172,000 as per the scammer’s instructions, the funds were swiftly laundered through multiple bank accounts, making recovery nearly impossible.
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The Prevalence of Pig Butchering Scams
The incidence of pig butchering scams has surged in conjunction with the growing popularity and lack of regulation in the cryptocurrency arena.
The FBI’s Internet Crime Complaint Center (IC3) reported that in 2022, investment scams inflicted losses exceeding $3.3 billion on victims, with cryptocurrency-related scams accounting for approximately $2.57 billion, representing a staggering 183% increase from the previous year’s figure of $907 million. Many of these incidents were pig butchering scams.
Elderly individuals are particularly at risk, with the FBI’s 2023 Elder Fraud Report indicating that people over 60 suffered losses totaling $3.4 billion in 2023, marking an 11% rise compared to the previous year.
Strategies to Safeguard Yourself from Pig Butchering Scams
To protect yourself and your older loved ones from these scams, consider the following precautions:
Exercise caution towards unsolicited online interactions, particularly if discussions shift quickly to financial matters.
Conduct thorough research to verify any investment platform. If a site does not appear on FINRA’s BrokerCheck or lacks credible company details, it may be a fraudulent entity.
Refrain from investing in apps or websites that are recommended by strangers, no matter how professional they seem.
Never transfer funds or cryptocurrency to someone you have only met online.
If you suspect fraudulent activity, report it to the FTC or your local law enforcement authorities without delay.
Additional Resources
This article serves to provide informative content and should not be considered as professional advice. It is shared without any form of warranty.
Source
www.yahoo.com