“Slaughtering pigs”: warning of a new cryptocurrency scam

A new cryptocurrency scam has cost many Canadians and Americans hundreds of thousands of dollars, the Nova Scotia Securities Commission warned Monday.

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The modus operandi of this scheme called “pig slaughtering” aims first of all to develop a bond of trust with the victim. The latter is first requested via SMS, e-mail or on social networks.

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

When the victim tries to withdraw money from their crypto account, the scammer tells them that they need to pay taxes or fees to complete this transaction, but ends up disappearing.

In addition, the fraudster manages to gain access to the victim’s bank details by asking him to install commercial applications that will allow him to steal even more money from the victim.

Eventually the scam ends when the scammer pretends to be someone else and tells her she can get her money back if she pays a fee. “This is known as a clawback scam and victimizes the original victim,” the Nova Scotia Securities Commission said in a statement.

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

“While there are always fraudsters inventing new schemes, these so-called ‘pig butcher’ scams involving cryptocurrency assets have become widespread and claim many victims, many with very large losses. Important,” said commission chairman Paul Radford.

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

The Nova Scotia Securities Commission added that the best way to protect yourself from this type of scam is to know how to recognize them in order to avoid them.

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