The FBI’s latest operation resulted in the recovery of $6 million stolen from U.S. citizens by a Southeast Asia-based fraud ring. The scammers led their victims to believe they were investing in legitimate projects, causing significant financial harm.
FBI Official Issues Warning
Chad Yarbrough, the Assistant Director of the FBI’s Criminal Investigation Division, emphasized the devastating impact of cryptocurrency scams on Americans. He noted that these frauds target U.S. citizens, leading to millions of dollars lost.
“These types of scam schemes are destructive and affect thousands of Americans daily. The FBI has observed that victims have lost millions of dollars, taking out second and third mortgages on their homes, all in hopes of finding the next big investment opportunity.”
“Pig Butchering” Scam
According to the FBI, victims were directed to fake offshore platforms after withdrawing their funds from banks and transferring them to cryptocurrency wallets. To establish trust, the scammers initially offered limited withdrawal opportunities.
Known as “Pig Butchering,” these scams emerged in China in 2016 and gained traction in Southeast Asia, particularly during the COVID-19 pandemic. According to reports from October 2023, 12% of Americans claimed to have fallen victim to such scams. However, it’s important to note that not all of this 12% were deceived by cryptocurrency narratives.
Scammers often approach their victims through social or dating applications. By building trust over time, they convince victims to invest increasingly larger amounts before facing the same dire consequences.
The rise of cryptocurrency scams in recent years necessitates constant vigilance from users. It is crucial to exercise caution towards individuals approaching you on social media and dating platforms.
