He Fell Victim to Crypto Romance Scam: What’s Waiting Ahead?

The story of a man who fell victim to a crypto romance ("pig butchering") scam and lost his life savings.

Continue reading He Fell Victim to Crypto Romance Scam: What’s Waiting Ahead? at DailyCoin.com.

View Details

Coinbase Raises Alarm on ‘Pig Butchering’ Crypto Investment Scams

<p>American cryptocurrency exchange, Coinbase, has raised concern over increase in the number of romance-investment scams called ‘pig butchering’ or ‘Sha zu pan'.</p><p>This type of scam occurs when a scammer sources for victims through dating apps and social media and builds “trust with their victim, sometimes over a long time period of weeks or months.”</p><p>The Coinbase Global Investigations, Trust & Safety, and Threat Intelligence Teams expressed worry on the rising popularity of this scam in <a href="https://blog.coinbase.com/security-psa-sha-zhu-pan-pig-butchering-investment-scams-9998ee163cae">a security PSA </a> released on Thursday.</p><p>Coinbase explained, “Recently, a noteworthy increase in scams purporting to be foreign exchanges or crypto trading platforms that are spread by scammers who use dating apps to lure victims. </p><p>“While <a href="https://www.financemagnates.com/fintech/is-the-uk-fca-doing-enough-to-stop-investment-scams/" target="_blank">investment scams</a> and romance scams are not unique to the cryptocurrency ecosystem, the irreversible nature of cryptocurrency transactions can make these scams devastating.”</p><p>The publicly-traded company, however, noted that it works closely with law enforcement actors across the world to protect its customers from different forms of targeted cyber attacks.</p><p>Modus Operandi</p><p>For this nature of scam, <a href="https://www.financemagnates.com/tag/coinbase/" target="_blank">Coinbase </a>explained that fraudsters typically claim that they have received enormous financial gains from a cryptocurrency investment and convince their victims to also invest in such schemes. </p><p>At other times, the scam might come in the form of offering to teach victims how to trade successfully.</p><p>The distributed company explained, “Victims are directed to visit a fraudulent website that often looks like a legitimate <a href="https://www.financemagnates.com/terms/t/trading-platform/" target="_blank">trading platform</a> and coached to deposit funds into an account that is controlled by the scammer.</p><p>“Some victims even receive a small amount of funds that are claimed to be ‘returns’ on their investment to entice them to invest even larger sums.</p><p>“When the victim tries to withdraw funds from the site, they are then told they owe a tax payment or service fee before their funds will be released in an effort to further extort them for money.”</p><p>Coinbase noted that its teams identify and add addresses associated with scams to its products’ blocklists to shield its customers. </p><p>The exchange urged its users to be vigilant against this type of scam.</p> This article was written by Solomon Oladipupo at www.financemagnates.com.

View Details

'Pig slaughtering' crypto scams reap millions on Silicon Valley dating apps

“I never thought it could happen to me because I use tech. I’ve written software,” a victim of the pig slaughtering scam noted.

View Details

AI-powered romance scams: The new frontier in crypto fraud

AI-powered romance scams leverage chatbots and deepfakes to deceive crypto users, posing new challenges in fraud prevention.

View Details