Introduction
Online dating scams - "all it takes is a little trust, the promise of lucrative cryptocurrency payouts, and a credulity many believe is among us" [Esiwe, C. Crypto Romance Scams: How to Detect and Protect Yourself From Online Dating Scams. (Accessed June 3, 2022)].
Crypto romance scams usually happen when scammers meet vulnerable individuals on online dating platforms and pose to be real love-seekers with the intention of swindling and extorting crypto from their potential victims.
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Let's give a look at one of the more prevalent forms of this type of scam which is presently on the rise.
Pig Slaughtering Crypto Scams
Users of Dating Apps in California's Silicon Valley are experiencing a wave of 'pig slaughtering crypto scams while searching for their soul mate. An investigator working on behalf of 'Sift', a cybersecurity company, discovered that one in twenty people that contacted her on various dating apps within San Francisco was, in fact, operating this scam.
Pig slaughtering, or butchering, is a type of scam in which an individual/group puts in weeks or months of work to build a fake relationship with the victim, metaphorically fattening them up. The end goal is to get the victim to invest in crypto via either a duplicated version of a legitimate website or by transferring funds to a dodgy wallet address. The scammers often shift the conversations over from dating apps or social media to encrypted messaging services such as WhatsApp and put in countless hours of daily conversation to make their fake personas seem realistic, without ever actually meeting in person in most cases.
[Quarmby, B. ‘Pig slaughtering’ crypto scams reap millions on Silicon Valley dating apps. (Accessed June 3, 2022)].
Cryptocurrency-based crime generally is on the rise and it hit a new all-time high in 2021. Nefarious addresses associated with illicit conduct have received $14 billion over the course of 2021, up from $7.8 billion in 2020.
But those numbers don’t tell the full story. Cryptocurrency usage is growing faster than ever before. Across all cryptocurrencies tracked by Chainalysis, total transaction volume grew to $15.8 trillion in 2021, up 567% from 2020’s totals. Given that roaring adoption, it’s no surprise that more cybercriminals are using cryptocurrency.
[CHAINALYSIS TEAM. Crypto Crime Trends for 2022: Illicit Transaction Activity Reaches All-Time High in Value, All-Time Low in Share of All Cryptocurrency Activity. (Accessed June 3, 2022)].
Nonetheless, there is some surprisingly good news reported in this Study:
...the fact that the increase was just 79% — nearly an order of magnitude lower than overall adoption — might be the biggest surprise of all. In fact, with the growth of legitimate cryptocurrency usage far outpacing the growth of criminal usage, illicit activity’s share of cryptocurrency transaction volume has never been lower.
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In April 2022, the FBI published a general warning on crypto-romance scams and pig slaughtering, which included:
The Pig Butchering scam pulls on heartstrings and purse strings. The fraud is named for the way scammers feed their victims with promises of romance and riches before cutting them off and taking all their money. It’s run by a fraud ring of cryptocurrency scammers who mine dating apps and other social media for victims. And the scam is becoming alarmingly popular. In 2021, the FBI’s Internet Crime Complaint Center received more than 4,300 complaints related to crypto-romance scams, resulting in more than $429 million in losses.
[KTVZ News Sources. Oregon FBI’s Tech Tuesday: Digital defense against ‘Pig Butchering’ cryptocurrency scam. (Accessed June 3, 2022)].
According to the FBI, in late 2019 this scam found its genesis in China. However, as the numbers suggest, the scam is becoming more widespread here in the U.S. Seamless translation protocols are being utilized by the 'scammers' to facilitate international communications with their potential victims.
So why is such an increase in this scam being found in Silicon Valley? The Global Anti-Scam Organization posits that "Silicon Valley workers are increasingly falling victim to these scams due to overconfidence in tech-savviness, loneliness due to the pandemic and an interest in gaining crypto exposure" [Quarmby. Supra].
[It should be noted that the Global Anti-Scam Organization maintains a list of the commonly used scam sites (many employing cryptocurrency) which may be found by clicking here].
Protecting Yourself from Falling Victim to a 'Pig Slaughter' Scam
The FBI recommends the following to protect yourself:
- Never send money, trade, or invest based on the advice of someone you have only met online.
- Don’t talk about your current financial status to unknown and untrusted people.
- Don’t provide your banking information, Social Security Number, copies of your identification or passport, or any other sensitive information to anyone online or to a site you do not know is legitimate.
- If an online investment or trading site is promoting unbelievable profits, it is most likely that—unbelievable.
- Be cautious of individuals who claim to have exclusive investment opportunities and urge you to act fast.
[KTVZ News Sources. Supra].
All of these suggestions are pure common sense, however, they must be kept in the mind's forefront when dealing with a potential scam activity so as not to get caught in the heat of the moment.
"If you are the victim of any online fraud, you should report the incident to the FBI’s Internet Crime Complaint Center at www.ic3.gov or call your FBI local office" [Id].