FBI Warns of “Pig Butchering” Schemes Targeting Crypto Investors

TLDR

• FBI Baltimore warns of increasing “pig butchering” crypto scams in Maryland
• Victims lost $54.5 million between January-August 2024
• 668 Marylanders lost $69.1 million to similar schemes in 2023
• Scammers trick victims into fake crypto investments
• FBI advises caution and verifying opportunities before investing

The Federal Bureau of Investigation’s Baltimore office has issued a warning about the rising threat of cryptocurrency investment fraud in Maryland. These scams, known as “pig butchering,” have cost residents millions of dollars in recent years.

Between January and August 2024, Maryland residents reported losses of almost $54.5 million due to these fraudulent schemes. This follows a troubling trend from 2023, when 668 Marylanders lost a total of $69.1 million to similar scams.

In these “pig butchering” schemes, scammers build trust with their victims over time, often through social media or dating apps.

They then persuade the victims to invest in seemingly legitimate cryptocurrency opportunities. However, these investments are fake, and victims often lose their entire investment.

FBI Baltimore Special Agent in Charge William J. DelBagno emphasized the importance of caution when considering investment opportunities.

“Never trust someone you haven’t met who claims to be an expert and can help you make money through a can’t-miss investment opportunity,” he advised.

The FBI noted that these scams affect a wide range of individuals, from people in their 20s and 30s to senior citizens. The financial and emotional impact on victims can be devastating.

To help the public avoid falling victim to these scams, the FBI has provided several recommendations. First, they advise against sharing financial or personal information with unknown individuals.

This includes not sending money to people you have only communicated with online or by phone.

Second, the FBI suggests verifying any investment opportunities before committing funds. This might involve researching the company or individual offering the investment, checking their credentials, and looking for any red flags or negative reviews.

The agency also recommends being wary of unsolicited offers, especially those that promise high returns with little or no risk.

Legitimate investments typically come with some level of risk, and if an offer seems too good to be true, it probably is.

Another red flag to watch out for is pressure to act quickly. Scammers often create a sense of urgency to prevent victims from taking the time to think critically about the investment or seek advice from friends, family, or financial professionals.

The FBI encourages anyone who believes they may have fallen victim to a cryptocurrency investment scam to report it.

Victims can contact the FBI Baltimore field office directly or file a complaint with the Internet Crime Complaint Center (IC3).