U.S. attorney’s office, east district of Virginia, announced on November 21, 2022, through an immediate press release to have seized domains of seven websites active furtherance of crypto called the “pig butchering” scheme.
As per court records, the scammers convinced five victims residing in the United States to deposit cryptocurrency into the sites believed to be the spoofed domains of the Singapore International Monetary Exchange. The scammers used seven seized domains from May to August 2022 to complete the scam.
The scammers persuaded the victims by developing confidence that they were financing a legitimate cryptocurrency business opportunity. Soon after victims transferred funds, The scammers used the seven seized domains and shifted funds into various private wallets. As a whole, victims suffered a loss of $10 million.
The concept “spoofed” refers to domain spoofing, a cyberattack in which scammers or hackers try to trick people into thinking a website address or email comes from a reliable and widely trusted company. In reality, it directs them to a fake website run by a cybercriminal.
In the pig butchering game plan, scammers target victims through social media websites, dating apps, and even by sending text messages from the wrong numbers. They associate relationships with the victims, gain confidence and start persuading for investment opportunities in cryptocurrency or other projects. Soon after the victims transfer the amount into the fake investment app, the scammers vanish, taking all the amount and resulting in loss to the victim.
Increased Crypto Scams Complaints To The FBI
As per the FBI, pig butchering started in China in 2019 and aggressively increased in western countries. The scam analysis data shows increased pig butchering crimes during the current year.
The Bureau’s Internet Crime Complaint Center received over 4,300 complaints about scams involving the butchering of pigs in the last year. Over $429 million was lost as a result of pig butcherin.
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The regulatory authorities have warned citizens to take protective measures and not transfer money to unknown persons. Potential victims should be cautious of these possibilities, particularly if they promise significant gains.
Additionally, they must be careful while putting cash on fraudulent websites or exchanges. Many take tremendous pains to present themselves as reputable institutions yet frequently deviate slightly from the original.