Phishing scams are increasingly becoming a significant concern for cryptocurrency investors, ranking as the second-largest threat in the sector. Based on the data provided in the document, with losses amounting to a staggering 722 million dollars across 248 reported incidents, the impact of these scams is undeniable.
Pig Butchering Scams: A Growing Threat
Among the various types of phishing scams, pig butchering scams have emerged as particularly damaging, inflicting a collective loss of 55 billion dollars in 2024 alone. These scams have affected approximately 200,000 individuals, highlighting their widespread nature and the vulnerability of investors.
Modus Operandi of Scammers
The modus operandi of these scams often involves extensive emotional manipulation, where victims are groomed over a period of one to two weeks, although some cases have reported grooming periods extending up to three months. This psychological tactic makes it easier for scammers to convince victims to transfer their funds.
Government Action Against Fraud
In a significant move against these fraudulent activities, the US Department of Justice announced in June the seizure of over 225 million dollars in cryptocurrency linked to pig butchering scams. This action underscores the escalating threat these scams pose to investors and the ongoing efforts by authorities to combat such illicit activities.
In light of the rising threats posed by phishing scams in the cryptocurrency sector, the US Securities and Exchange Commission (SEC) has recently filed lawsuits against multiple crypto platforms to enhance market integrity. For more details, see read more.
