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Michigan Attorney General Dana Nessel is warning Michiganders about scams involving cryptocurrency as financial products like bitcoin are growing in popularity.
For example, a new scam called “pig butcher” has “highlighted the need for fraud awareness,” according to the Nessel office in a consumer notice sent to Michigan residents on Monday, Oct. 17.
Nessel’s office also noted that a 2021 Wall Street Journal article estimates the total cryptocurrency market value to be over $ 2 trillion, up from $ 260 billion a year ago, about a year ago.
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Did you receive an SMS from the wrong number? It could be an attempt to “slaughter pigs”.
The “Pig Butcher” is a crypto scam that costs investors millions. It uses romance as a tactic to build trust with the victim and ultimately convinces her to invest her money using a fake cryptocurrency platform, according to the consumer’s notice.
The name refers to how the scammers “feed their victims promises of romance and wealth before cutting them off and taking all their money,” according to the FBI in an April 2022 press release.
And it is becoming more and more popular. In 2021, according to the FBI’s Internet Crime Complaint Center, $ 429 million was lost to this type of scam.
But there are ways to protect yourself.
The Nessel office advised residents to take the time to research any planned investments and be wary of promises of large and quick returns to avoid “cutting the pig”.
“As the popularity of cryptocurrency increases, the prevalence of scams will also increase,” said Dana Nessel, AG of Michigan in a press release. “Bad actors running investment scams are always looking for new ways to target unsuspecting investors. It is so important to do your research before investing in anything, including determining how and if you will be able to transfer digital earnings to your bank. “
(Katy Kildee/[email protected])“Above all, don’t confuse online dating with investment advice,” reads the consumer advisory. In other words, don’t follow the investment advice of the people you meet on Hinge.
Here are some additional red flags to look for:
- Strangers send seemingly harmless text messages out of the blue.
- Strangers quickly attempting to move the conversation to WhatsApp or another social media site.
- People who avoid video calls with multiple excuses or categorically refuse to initiate any type of video call.
- People discussing their privileged investment knowledge.
- The URL of the investment platform does not match the official website of a popular cryptocurrency market or exchange, but is “very similar”.
- The investment app generates warnings indicating that it is unreliable when launched.
- The investment opportunity sounds “too good to be true”.
If you have been affected by this type of scam, consumer complaints can be submitted online at the Nessel office. The longer you wait, the harder it is to track down or freeze stolen funds, according to his office.
