From Tinder match to scam victim: AG warns of ‘pig slaughter’ of crypto scams

by Arthur · October 17, 2022

Random messages from people with unknown numbers posing as an old friend or apologizing for the wrong number may not be as harmless as they seem, according to the Michigan Attorney General.

Scammers have lured potential victims in with the promise of being a long-forgotten friend, a new friend, a wrong number or boyfriend via text messages and social media apps, according to the attorney general’s office.

The new scam is gaining popularity on sites like Tinder and WhatsApp.

It’s called “pig slaughter” and combines a romantic scam with an investment spin. According to the Federal Bureau of Investigation, the term “pig butchering” refers to a time-tested, heavily scripted and contact-intensive process of “fatting the prey prior to slaughter.”

In these cases, the scammer has convinced the scam victim to invest in a fake cryptocurrency website. The long con allows the victim to make small gains on the fake investment and even withdraw those gains a few times to prove the legitimacy.

The scammer persuades the victim to invest large sums of money, sometimes hundreds of thousands of dollars, on the fake website. Then the fraudster disappears with the money.

Related: Cryptocurrency scams are on the rise. Michiganders have lost thousands.

Cryptocurrency scams jumped from the seventh riskiest scam in 2020 to the second riskiest in 2021, according to the 2021 Better Business Bureau Scam Tracker Risk Report. More than 66% of people who reported falling victim to a cryptocurrency scam also reported losing money.

So far this year, there have been 1,116 frauds filed through the fraud tracker. Among them, 20 have been categorized as cryptocurrency scams.

In Royal Oak, one victim reported that he messaged a girl via WhatsApp. During the call, the victim made four crypto transactions totaling $37,244. The complaint said the victim is struggling to find legal help to recover his losses.

Another complainant in Allen Park reported an attempted scam. The potential victim developed a relationship with a woman on WhatsApp. The woman made 27 requests for the potential victim to send money via cryptocurrency before the potential victim blocked the number and reported it.

The Attorney General’s Office notes that scammers know that consumers are becoming savvy about online scams, which is why developing a friendship or romantic relationship has become common in scams.

The “pig slaughtering” technique is successful because the “new friend” creates reasons to continue a conversation, which leads to more conversations. The scammer slowly develops a relationship so they can insert themselves into the victim’s daily life, according to the attorney general’s warning.

While building trust with the victims, the scammer slowly introduces the idea of making a business investment using cryptocurrency. Victims are gradually drawn into what appears to be benign talk about cryptocurrency investment and earnings, but are really being manipulated into making an investment, according to the Attorney General.

The scam has been dubbed a “super-scam” as funds add up quickly and are rarely recovered.

Look for these red flags when developing relationships online:

Strangers sending seemingly harmless text messages out of the blue.
Strangers quickly trying to move the conversation to WhatsApp or another social media site.
People who avoid video calls with multiple excuses or outright refuse to initiate any kind of video calls.
People gossip about their insider investing knowledge.
The URL of the investment platform does not match the official website of a popular cryptocurrency market or exchange, but may be very similar.
The investment app generates warnings about being “untrusted” when launched, or your computer’s anti-virus software flags it as potentially dangerous.
The investment opportunity sounds too good to be true.

The Attorney General gives these tips to prevent fraud:

Do not send money, exchange or invest with a person you have only met online.
Don’t talk about your financial position or investments.
Do not share personal information or current financial status with strangers.
Do not provide bank details, social security numbers, copies of identification or passports or other sensitive information to anyone online or to a website that you cannot verify is authentic.
If an online investment or trading site promotes incredible profits, it is most likely just that – incredible.
Be wary of people who claim to have exclusive investment opportunities and urge you to act quickly.

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