Global cryptocurrency exchange platform Binance warns that “Pig Butchering” fraud attempts have increased by 100.5% from 2022 to the present and provides a set of security measures for users.
This type of scam is an investment fraud that targets inexperienced or hasty users. Victims are lured with promises of high returns and a luxurious lifestyle. Fraudsters gain victims’ trust over time by closely studying them and showing them the initial profits from their investments. Once victims’ trust is gained, and they invest larger sums on the fraudulent platform, the scammers disappear suddenly with the victims’ funds.
The fraud is named “Pig Butchering” because fraudsters “fatten up victims” with false gains before “slaughtering” them for the rest of their money. It’s important to note that similar techniques have been used for years in various types of fraud, and consumers need to be aware that these scams are not limited to the crypto space.
How to Prevent Fraud:
- Be cautious of offers that seem too good to be true: High returns with low or no risk are often a red flag. Verify with reliable sources of information.
- Conduct thorough research: Investigate the investment opportunity, the company, individuals involved, and the specific market segment. Online reviews, forums, and social media can provide insights and feedback from others.
- Verify credibility: Ensure that the investment platform or individual holds the necessary licenses and registrations and is authorized to operate in a specific jurisdiction. Investments should only take place through official channels, not through social media platforms or individuals.
- Avoid hasty decisions: Scammers often create a sense of urgency to pressure victims into making rushed decisions. Consider whether the person you’re communicating with is pushing for specific actions or instilling a sense of impending loss in the absence of immediate action.
- Beware of secret or complex schemes: Scammers may present their investments as exclusive opportunities or use complex jargon to make them appear legitimate. Clarity is essential in any investment opportunity.
- Personal information: Never share sensitive personal or financial information, such as passwords or private keys, with anyone, even if they claim to represent a trustworthy entity.
- Skepticism toward unsolicited offers: Every unsolicited email, message, or call offering an investment opportunity should be approached with caution and skepticism, even if they claim to come from known recommendations.
- Monitor investments: Keep records of your investments and maintain open communication with the investment platform. Frequent unexplained changes or difficulties in obtaining information can be warning signs.
Binance is the world leader in the blockchain ecosystem and a provider of cryptocurrency infrastructure, with a suite of financial products that include the largest digital asset exchange by volume. Trusted by millions of people worldwide, the Binance platform is dedicated to increasing financial freedom for users and offers a unique portfolio of crypto products and offerings, including trading and finance, education, data and research, social good, investment and incubation, decentralization solutions, infrastructure, and much more. For more information, visit https://binance.com/ro.
