Crypto

“Pig Butcher”: New Cryptocurrency Scam Alert

The Nova Scotia Securities Commission warned on Monday that a new cryptocurrency scam has cost many Canadians and Americans hundreds of thousands of dollars.

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The principle of operation of this device called “slaughter of pigs” is aimed primarily at establishing a trusting relationship with the victim. The latter is first requested via SMS, email or social networks.

Once the relationship is established, the scammer convinces the victim to invest in cryptocurrencies. After some time, he sends her a fake “account statement” showing impressive profits. This part of the scheme is called “pig fattening” and aims to convince the victim to invest even more money.

When the victim tries to withdraw money from his crypto account, the scammer tells him that he must pay taxes or fees to complete this transaction, but ends up disappearing.

Moreover, the scammer manages to gain access to the victim’s banking data by asking him to install commercial applications, which will allow him to steal even more money from the victim.

In the end, the scam ends when the scammer impersonates another person and tells her that she can get her money back if she pays a fee. “This is called a money back scam and re-victimizes the original victim,” the Nova Scotia Securities Commission said in a statement.

In most cases, the victims of this type of scam never get their money back.

“While there are always scammers inventing new schemes, these so-called cryptocurrency asset scams have become widespread and claim many victims, many of whom have suffered very large losses,” said Commission Chairman Paul Radford.

The latter also recalled that since 2021, more than a billion dollars have been lost in this type of scam in North America.

The Nova Scotia Securities Commission added that the best way to protect yourself from this type of scam is to know how to spot it to avoid it.

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