Brooklyn District Attorney Eric Gonzalez is warning New Yorkers about a new type of scam that is targeting individuals interested in cryptocurrency. This scam, also known as “pig butchering,” involves luring victims into making bogus investments with promises of high returns.
During a press conference at his office, Gonzalez explained the tactics used by these scammers, comparing it to the practice of fattening hogs before slaughter. He emphasized that victims often do not realize they have been scammed until it is too late.
The scammers use various techniques to gain the trust of their victims, including targeting them through dating apps like Bumble. In one recorded testimony, a woman shared how she was scammed out of $118,000 after being approached by a man on the app who claimed to be knowledgeable about cryptocurrency.
Group chat apps, such as WeChat, WhatsApp, and Telegram, are also used by scammers to add victims to seemingly legitimate chats about crypto investments. One man shared his experience of being added to a Facebook group chat and ultimately losing $420,000.
To combat this growing problem, the Brooklyn DA’s office is focused on disruption and prevention. They have seized over 20 web domains, including a website and app called Coinformat, which have collectively scammed victims out of nearly $3 million.
However, it is challenging to recover stolen funds as they are often quickly transferred to different cryptocurrency addresses and then converted to different tokens. The criminals behind these scams are typically organized crime rings or crypto crime syndicates, making it difficult for law enforcement to track and prosecute them.
The Brooklyn DA’s office is urging anyone who has been a victim of a cryptocurrency scam to report it immediately. Despite the estimated $3 billion lost to these scams last year, officials believe that the reported number of cases is likely an undercount due to victims being too embarrassed to come forward.
In conclusion, it is essential for New Yorkers to be cautious and do their research before making any investments in cryptocurrency. If they do fall victim to a scam, they should not hesitate to report it to authorities to prevent others from being targeted.
